Worksheet & Accounting Cycle

You need to make an adjusting entry recognizing the insurance expense for the month. Your annual prepaid premium is $1,440. What should your entry be?

$120

Your school paid $1,000 for a five year subscription to an online video service. How much should be expensed via worksheet adjustments each month?

$16.67

Your are in the heating oil business. You began the month with 78,600 gallons of oil. You end the month with 56,455 gallons and made no purchases. Your oil was all bought through a contract at $2.02 per gallon. What amount should be entered as your oil expense for the month?

$44,732.90

Your are recognizing expenses for supplies used during a month. You started with $100 of supplies, purchased $50, and now have $60 worth left. How much did you use?

$90

A transitional account into which all revenue and expense accounts are transferred at the end of an accounting period is called:

Income summary

Which of the following accounts is NOT closed at the end of the year?

Accounts payable

In completing a worksheet, which formula best represents closing net income to owner's equity?

Balance Sheet Credits + Net Income = Balance Sheet Debits

True or false: An after-closing trial balance includes both revenue and expense accounts.

False

True or false: In the trial balance, the debit column should always be larger than the credit column if a company is profitable.

False

In the Adjustments columns of a worksheet, you have debits of $45, $56, $23 and credits of $112, $23. Can this worksheet be correct?

No

True or False: The value on a worksheet of owner's capital in the trial balance column should equal the previous month's owner's capital plus net income minus any dividends?

True

In the adjustments columns of a worksheet, which formula best represents the amount to credit supplies expense?

Units Used x Unit Cost

Which is the correct sequence of steps in the accounting cycle?

adjusted trial balance, financial statements, closing entries

In preparing a trial balance, you have the following account balances: Cash $700, Sales $400, Expenses $300, Owners Capital $100. Does your trial balance balance?

Yes

At the end of the month a business learns that of the $6,000 it collected in advance, it delivered $5,000 in services. Its end-of-the-month adjusting entry would debit:

unearned revenue

When preparing financial statements, the _____________ is always prepared first.

income statement

The purpose of a worksheet is NOT to:

prepare formal financial statements

If a business bought $3,000 in supplies on May 1 and at the end of the month had $1,000 left in supplies, how much would it debit supplies expense for an adjusting entry?

2000

In the trial balance column, a worksheet shows revenue of $478 and expenses of $123, $44, $88. What is the trial balance for net income?

223

The journal entries made at the end of the accounting cycle to create zero balances in the temporary accounts are called ___________ entries.

closing