Chapter 4, 5, 6
Sail. Inc pays its workforce on Fridays for a five-day workweek ending on that dayThe payroll for a week is \$165,000 . If the accounting year-end falls Tuesday, the adjusting journal entry record this include a
$66,000 (165,000/5)x2
First corporation how to retained earnings at the end of December 31, 2018 of $900,000. During 2019, the company had net income of $340,000 and declared dividends of $40,000. The amount of retained earnings reported on the balance sheet as of December 31, 2019 will be:
1,200,000 Ending retained earnings = beginning retained earnings+ Net income-Dividends 900,000+340,000-40,000= 1,200,000
If an expense has been incurred but will be paid later, then
A liability account is credit or increased and an expense is recorded
Before the closing entries are prepared the retained earnings balance in the adjusted trial balance is equal to the balance of that account: A. At the beginning of the period B.After adding revenues and subtracting expenses before subtracting dividends C. At the end of the period D. At the beginning of the next period
A. At the beginning of the period
The balance of which of the following accounts appears in the credit column I'm gonna just a trial balance The balance of which of the following accounts appears in the credit column I'm gonna just a trial balance A. Common stock B. Equipment C. Dividends D. Accounts receivable
A. Common stock
Which of the following statements about an adjusted trial balance is correct? A. It is used to prepare financial statements B. It is prepared to ensure assets equal liabilities C. It is prepared at the beginning of the year D. It is prepared before the adjusting journal entries have been made
A. What is used to prepare financial statements
Which of the following trial balances is used as a source for preparing the income statement?
Adjusted trial balance
Accumulated Depreciation appears on the
Balance sheet as a contra-asset account
Adjusting entries affects
Both income statement and balance sheet accounts
Which of the following statements about adjusting entries is not correct? A. Adjustments are needed to ensure that the accounting system includes all of the revenues and expenses of the period. B. Adjustments help to ensure the related accounts on the balance sheet and income statement are up-to-date and complete C. Adjusting entries often affect the cash account D. Adjusting entries always include one balance sheet and one income statement account
C. Adjusting entries often affect the cash account
Closing entries:
Cause the revenue and expense accounts of zero balances
In the closing process, expenses and dividends are zeroed out by_________ each account and revenues are zeroed out by______each account
Crediting; debiting
A company started the year with $3,750 of supplies on hand. During the year the company purchased additional supplies of $2,000 and recorded them as an increase to the supplies asset. At the end of the year the company determined that only $750 of supplies are on handWhat is the adjusting Journal entry to be made at the end of the period?
Debit supplies expense and credit supplies for $5000 Supplies expense = beginning balance + supplies purchased - supplies on hand at end of period = $3750 + $2000 -$750 = $5000
Which account below is a permanent account? A. Service revenue B. Depreciation expense C.Dividends D. Deferred revenue
Deferred revenue
A contra- account:
Offsets, or reduces, another account
Which of the following steps is performed last at the end of the year
Prepare a post closing trial balance
Angela is a tenant of Bruce. On March 1Angela paid Bruce $2,400 for 3 months of rent. March 31 Angela's adjusting entries will include one with debit to
Rent expense for $800 and a credit to Prepaid Rent for $800 (2,400\3)x1
When a deferral adjustment is made to a liability account, that liability becomes a(n)
Revenue
At the end of the accounting period
Temporary accounts are closed ;permanent accounts are not
What is the purpose of the closing process
To prepare the accounting records so they are ready to track results for the following year
Closing journal entries:
Transfer net income or loss in dividends to retain the earnings
If certain assets are partially used up during the accounting period, then:
an asset account is decreased and an expense is recorded
