Ch 1 1. Given the following dat Dec 31 Year 2 Dec 31 Year 1 Total liabilities S128,250 $120,000 Total stockholders oquity 95.000 80.000 compute the ratio of liabilities to stockholders' equity for each year Round to two decimal places 1.50 and 107, 11.35 and 1.50 respectively respectively 1.07 and 1.19. 1.1.19 and 1.35 respectively respectively The liabilities and stockholder's equity of a company are $132,000 and $244.000, respectively. Assets should equal SS188.00 $132.00 p $376,00 12.000 A financial statement user would determine if a company was profitablece during a specific period of time by reviewing the Income statement balance sheet statement of cash flows 4. tatement of stockholders' equity 4. Faming rever Increases assets, increases stockholders' cquity Increases assets, decreases stockholders Jequity increases one assel, decreases another set 1. decreases assets, increases liabilities Resources owned by a business are known as Hebts Issets 11. fequity Which of the following is not a business transaction I make a sales offer ell goods for cash receive cash for services to be rendered ater 1. pay for supplies How does theyment of rent facequent affect the accounting equation assets increase assets decrease esset decreasesteckholders equity decreases esc decrease: liabilities increase 11. assets increase stockholders' equity increases Which of the following asset accounts is increased when a receivable is collected! Accounts Receivable Supplies Accounts Payable Cash 2. If total liabilities decreased by S46,000 during a period of time and stockholders' equity increased by $60,000 during the same period, the amount and direction (increase or decrease of the period's change in total assets is a 106,000 increase $14.000 increase $14.000 decrease $106.000 decrease 10. Which of the following are guidelines for behaving ethically? Identify the consequences of a decision and its effect on others. 1. Consider your obligations and responsibilities to those affected by the decision | Identify your decision based on personal standards of honesty and faimess. and 11 land IL and II. II and III. 11. Four financial statements are usually prepared for a business. The statement of cash flows is usually prepared Jast. The statement of stockholders' cquity (SSE), the balance sheet (B), and the income statement (t) are prepared in a Sertain order to obtain information needed for the next statement. In what order are these three statements prepared? SSE,B B. 1. SSE SSE, LB B, SSE, 12. The accounting equation may be expressed as Assets Expenses -Liabilities Assets + Liabilities Stockholders quity Assets - Revenues - Liabilities Assets - Liabilities - Stockholders Equity 13. Which of the following account is a liability fecounts Payable Accounts Receivable Wages Expense Service Revenue 14. Debts owed by a business are referred to a precounts receivables xpenses stockholders' equity abilities 15. The assets and liabilities of Bennett Designs at December 31, the end of the current year, and its revenue and expenses for the year are listed below. What were the total assets on December 31? Accounts payable $42.000 Miscellaneous expenses 1.030 Accounts receivabic 10,340 Office expense 1.240 Cash 21.42 Supplies Fees earned 73.450 Wages expense 23.556 Land 47.000 Dividends 1650 Building 157.636 238,06 5236.39 P $309.84 33.430 16. The initials GAAP stand for General Accounting Procedures I. Generally Accepted Plans Generally Accepted Accounting Principles Generally Accepted Accounting Practices 17. Transactions affecting stockholders' equity include stockholder investments and payment of liabilities 1. stockholder investments, dividends, earning of revenues, and incurrence of expenses stockholder investments, earning of revenues, incurrence of expenses, and collection of accounts receivable btockholder dividends, earning of revenues, incurrence of expenses, and purchase of supplies on account 18. Computer Corporation is starting its computer programming business and has sold stock of $15,000. Identify how the Accounting equation will be affected increase in assets (Cash) and increase in liabilities (Accounts Payable) 1. increase in assets (Cash) and increase in stockholders' equity (Common Stock) increase in assets (Accounts Receivable) and decrease in liabilities (Accounts Payable) 12. increase in assets (Cash) and increase in assets (Accounts Receivable) 19. Cash dividends increase expenses I decrease expenses 15. Increase cash decrease stockholders' 20. The financial statement that presents a summary of the revenues and expenses of a business for a specific period of ime, such as a month or year, is called ain) prior period statement statement of stockholders' equity Income statement balance sheet 1. Deaner Company is selling a picce of land adjacent to its business premises. An appraisal reported the market value of the land to be $220,000. The Focus Company initially offered to buy the land for $177,000. The companies settled purchase price of $212,000. On the same day, another piece of land on the same block sold for S232,000. Under the cost principle, at what amount should the land be recorded in the accounting records of Focus Company! 177.00 P 212,00 $220,00 P 232,00 12. The debt created by a business when it makes a purchase on account is referred to as an account payable baccount receivable asset expense payable 13. Which of the following groups are considered to be internal users of accounting information! 1. employees and customers I customers and vendees employees and managers government entities and 4. An entity that is organized according to state or federal statutes and in which ownership is divided into shares of stock proprietorship is a corporation 1. Partnership Hovernmental ps. At the beginning of the year, Winton Company's assets were $180,000 and its stockholders' equity was 582,000 Puring the year, assets increased by $25,000 and abilities increased by S9,000. What was the stockholders' equity at the end of the year! S107,00 O,000 114.000 $116.000 & Which one of the following is the authoritative body in the United States having the primary responsibility for developing accounting principles? FASB RS SEC 17. Which of the following financial statements reports information as of a specific date income statement atment of ockholders' equity of cash flows Malance sheet 28. The acts and stockholder's cquity of a company are $199,000 and 595.000, respectively. Liabilities should $64,000 46,000 24,00 195.000 9. Financial reports med by 2.management creditors allare borrect 20. abilities are reported on the come Matement statement of stockholders' equity statement of cash flow lance sheet 31. How does paying a liability in cash affect the counting assets increase its decrease assets increase liabilities increase et decreasliabilities de abilities decrease stockholders' equity 12. Ramos Repair Company is paying a cash dividend. How does this transaction affect Ramos Repair Company's Eccounting aquatica? ...ncrease in assets (Accounts Receivable and decrease in lecca in assets (Cash) and decrease in stockholders Dividends) Secrease in assets (Cash) and decrease in liabilities (Accountable ncrease in assets (Cash) and decrease in stockholders' equity Dividends) 33. Revenues for the year totaled S162,000 and expenses totaled $174.000. The stockholders purchased $15,000 of common stock and were paid $6,000 in dividends during the year. What was the met income ormet loss for the year! IS1200 net come $12.000 nello $18,000 net loss 156,000 net loss 34. The ending balance of the retained carings accountappen .. oth the statement of stockholders' equity and the income statement ply the statement of stockholders' equity poth the statement of stockholders' equity and the balance sheet both the statement of stockholders' equity and the statement of cash hows is. Cash investments made by the owner in the business are reported on the statement of cash flows in the financing activities Investing activities section perating activities pection upplemental statement 36. A business paid $7,000 to a creditor in payment of an amount owed. The effect of the transaction on the accounting equation was to case asset dere anche asset Leccate and decrease a liability mase an asset, increase a liability 1. increase asset, increase stockholders equity Ch.2 Multiple Choice Vindicate the answer choice thar best completes the statement or answer the question. Which of the following accounts is a stockholders equity account Cash Accounts Payable Prepaid Insurance Common Sueck A chart of accounts is he same as a balance sheet usually a listing of accounts in alphabetical order sually a listing of accounts in financial statement pedier used in place of a kedager An account is said to have a debit balance if the amount of the debits exceeds the amount of the credits there are more entries on the debt side than on the credit side 5. here are more entries on the credit side than on the debit side the first entry of the accounting period was posted on the debit Side 1. In the chart of accounts, the balance sheet accounts are normally listed in which der abilities, assets, stockholders' qully sets, liabilities, sockholders stockholders' equity assets. liabilities 2 assets, stockholders' equity, liabilities 5. Which of the following entries records the purchase of common stock by stockholders Hebit Common Stock, credit Accounts Receivable bit Cash, credit Common Stock cbit Dividends credit Cash debit Fees Eamed; credit Common Stock A debit may signity an) decrease is liability account case in the come stack Cout decrease in the dividends account 1. Deaner Company is selling a picce of land adjacent to its business premises. An appraisal reported the market value of the land to be $220,000. The Focus Company initially offered to buy the land for $177,000. The companies settled purchase price of $212,000. On the same day, another piece of land on the same block sold for S232,000. Under the cost principle, at what amount should the land be recorded in the accounting records of Focus Company! 177.00 P 212,00 $220,00 P 232,00 12. The debt created by a business when it makes a purchase on account is referred to as an account payable baccount receivable asset expense payable 13. Which of the following groups are considered to be internal users of accounting information! 1. employees and customers I customers and vendees employees and managers government entities and 4. An entity that is organized according to state or federal statutes and in which ownership is divided into shares of stock proprietorship is a corporation 1. Partnership Hovernmental ps. At the beginning of the year, Winton Company's assets were $180,000 and its stockholders' equity was 582,000 Puring the year, assets increased by $25,000 and abilities increased by S9,000. What was the stockholders' equity at the end of the year! S107,00 O,000 114.000 $116.000 & Which one of the following is the authoritative body in the United States having the primary responsibility for developing accounting principles? FASB RS SEC 17. Which of the following financial statements reports information as of a specific date income statement atment of ockholders' equity of cash flows Malance sheet 28. The acts and stockholder's cquity of a company are $199,000 and 595.000, respectively. Liabilities should $64,000 46,000 24,00 195.000 9. Financial reports med by 2.management creditors allare borrect 20. abilities are reported on the come Matement statement of stockholders' equity statement of cash flow lance sheet 31. How does paying a liability in cash affect the counting assets increase its decrease assets increase liabilities increase et decreasliabilities de abilities decrease stockholders' equity 12. Ramos Repair Company is paying a cash dividend. How does this transaction affect Ramos Repair Company's Eccounting aquatica? ...ncrease in assets (Accounts Receivable and decrease in lecca in assets (Cash) and decrease in stockholders Dividends) Secrease in assets (Cash) and decrease in liabilities (Accountable ncrease in assets (Cash) and decrease in stockholders' equity Dividends) 33. Revenues for the year totaled S162,000 and expenses totaled $174.000. The stockholders purchased $15,000 of common stock and were paid $6,000 in dividends during the year. What was the met income ormet loss for the year! IS1200 net come $12.000 nello $18,000 net loss 156,000 net loss 34. The ending balance of the retained carings accountappen .. oth the statement of stockholders' equity and the income statement ply the statement of stockholders' equity poth the statement of stockholders' equity and the balance sheet both the statement of stockholders' equity and the statement of cash hows is. Cash investments made by the owner in the business are reported on the statement of cash flows in the financing activities Investing activities section perating activities pection upplemental statement 6.250 23. Gently Laser Clinic purchased laser equipment for $8.500 and paid $2.250 down, with the remainder to be paid Later. The correct entry would be Equipment 2.250 Cash 2.250 Cash 2.250 |Accounts Payable Equipment 8.500 Equipment Expense 8.500 Accounts Payable 2.250 Cash 6,250 Equipment 8.500 Accounts Payable 6.250 Cash 2.250 4. The is where a transaction can first be found in the accounting records, |_chart of accounts Pincome statement alance sheet Journal 25. The process of recording a transaction in the journal is called balancing oumalizing 15. posting summarizin 26. Mayash 192,000 Common Stock 2.000 Issued common stock for cash This journal entry will increase Common Stock and decrease Cash increase Cash and decrease Common Stock Is increase Cash and increase Common Stock 1. decrease Cash and decrease Common Stock 27 May Land Cash Purchased land for business 105,00% 105.000 What effects does this journal entry have on the accounts? increase Cash and increase Land decrease Cash and increase Land ecrease Cash and decrease Land increase Cash and decrease Land 7. Which of the following types of accounts have a normal credit balance Les and liabilities abilities and expenses revenues and common stock Homon stock and dividends S. A credit may signify a Secrease in assets Recrease in liabilities Weerase in common Hecrease in revenue 2. A debit signifies a decrease in expenses Evidend 10. The classification and normal balance of the dividends account is 1. in expense with a credit balance expense with a debit balance aliability with a credit balance tockholders' cquity with a debut palance 11. A debit balance in which of the following accounts would indicate a likely error: Salaries lixpense Notes Payable counts Receivable Supplies 12. Which of the following entries records the payment of an account payable 11. debit Cash, credit Accounts Payable uchit Accounts Receivable credit sebit Cash Credit Supplies Expense 11 lebit Accounts Payable; credit Cash 13. Which of the following entries recents the payment of dividends 1. Lebit Common Stock, credit Cash bebit Dividende credit Cash Hebit Salaries Expense; credit Cash sebit Salaries Expense credit Salaries Payale 14. Office supplies purchased by Janet's Cleaning Service on account were returned. The office supplies had not yet been paid for. Which of the following entries for Janer's Cleaning Service records this transaction? Cash, debit: Office Supplies, credit office Supplies, debit; Accounts Receivable. credit Accounts Payable, debit: Office Supplies, credit Office Supplies, debit: Accounts Payable, credit 15. Cash was paid by Janer's Cleaning Service to creditors on account. Which of the following entries for Janet's Cleaning Service records this transaction Cash detit. Commen Stock. credit Accounts Payable, debit; Cash, credit Accounts Receivable, debit: Cash, credit Accounts Payable, debit; Accounts Receivable, Kredit 16. Which of the following entries records the acquisition of office suppliesce account Office Supplies, debit: Cash credit Cash, debit, Office Supplies, credit Office Supplies, debit: Accounts Payable, credit 1. Accounts Receivable, debit: Office Supplies Kredit 17. Which of the following entries receeds the receipt of cash from clients on account Accounts Payable, debit; Fees Eamed, credit Accounts Receivable, debit: Fees Eamed. rodi Accounts Receivable, debit: Cash credit 1. Cash, debit: Accounts Receivable, credit 5. Which of the following entries records the receipt of cash from cash customers for services provided Earned, debit: Cash, credit Fees Eamed. debit: Accounts Receivable. Cash, debit: Fees Eamed, credit 1. Accounts Receivable, debit: Fees Eamed. kredit 19. Which of the following entries records the receipt of cash for two months' rent? The cash was received in advance of providing the service Prepaid Rent, debit, Rent Revenue credit wash debit: Uncanned Rent, credit Cash, debit. Prepaid Rent, credit 1.Cash deb Rent credit 20. A client has a massage and asks the company bookkeeper to mail her the bill. The bookkeeper should make which entry to record the invoice! No entry until the cash is received Fees Earned, debit: Accounts Receivable kredit Cash, debit: Fees Eamed, credit Accounts Receivable, debit: Fees Eamed. 21. Which of the following abbreviations is correct? Debit, "Dr". Credit Debit, "Du", Credit, "C" Pebit, "Du"Credit ca 4. Debit. "Dr": Credit. "C" 2. Which of the following is not a correct rule of debits and credits! Assets, expenses, and dividends we increased by debuts Assets are decreased by credits and have a normal debit balance abilities, revenues and stockholders' equity are increased by 14. The normal balance for revenues and expenses is a credit 6.250 23. Gently Laser Clinic purchased laser equipment for $8.500 and paid $2.250 down, with the remainder to be paid Later. The correct entry would be Equipment 2.250 Cash 2.250 Cash 2.250 |Accounts Payable Equipment 8.500 Equipment Expense 8.500 Accounts Payable 2.250 Cash 6,250 Equipment 8.500 Accounts Payable 6.250 Cash 2.250 4. The is where a transaction can first be found in the accounting records, |_chart of accounts Pincome statement alance sheet Journal 25. The process of recording a transaction in the journal is called balancing oumalizing 15. posting summarizin 26. Mayash 192,000 Common Stock 2.000 Issued common stock for cash This journal entry will increase Common Stock and decrease Cash increase Cash and decrease Common Stock Is increase Cash and increase Common Stock 1. decrease Cash and decrease Common Stock 27 May Land Cash Purchased land for business 105,00% 105.000 What effects does this journal entry have on the accounts? increase Cash and increase Land decrease Cash and increase Land ecrease Cash and decrease Land increase Cash and decrease Land 18. March 10 Accounts Payable Cash Paid creditors on account. 800 800 What effects does this journal entry have on the accounts: 1. decrease Accounts Payable, increase Cash increase Accounts Payable, decrease Cash |c. increase Accounts Payable, increase Cash d. decrease Accounts Payable, decrease Cash 29. In accordance with the debit and credit rules, which of the following is true a. Debits increase assets. 15. Credits increase assets. c. Debits increase both assets and common stock. 11. Credits increase both assets and liabilities. 30. Which of the following groups of accounts are increased with a debit: 1. assets, liabilities, stockholders' equity | assets, dividends, expenses e. assets, revenues, expenses I d. kassets, liabilities, revenues 31. That the total dollar amount of the debits equals the total dollar amount of the credits in the ledger accounts can be verified through a(n): chart of accounts 15. trial balance Il income statement d. balance sheet 35. The following errors took place in journalizing and posting transactions: 2.55,000 Dividends were recorded as a debit to Office Expense and a credit to Cash Accounts receivable payment for $7,800 was recorded as a debit to Cash and a credit to Fees Earned. Journalize the entries to correct the errors. Omit the explanations. 36. On December 1, JumpStart Company provides $2,800 in services to clients. a) Journalize this event as if the clients had paid cash at the time the services were rendered. b)(1) Journalize this event as if the clients had been rendered the services on account by(2) Assume that the clients paid $1,200 of the amount on account on December 30. Journalize this transaction 37. Journalize the following selected transactions for January. Explanations may be omitted Jam Received cash from the sale of common stock, S14,000 Received cash for providing accounting services. $9.500 Balled customers en account for providing services, SL 200 Paid advertising expense, $700. Received cash from customers on account, $2.500 Paid dividends, S1,010 Received telephone bill, 5900 paid telephone bill, 5900, Date Description Debit Credit Ch. 3 When is the adjusted trial balance prepared? 11. Before adjusting journal entries are posted bfter adjusting journal entries are posted I. after the adjusting journal entries are journalized refore the adjusting journal entries Journalized Adjusting entries are ... the same as correcting entries Ipeeded to bring accounts up to date and match revenue and expense optional under generally accepted accounting principles rarely needed in large companies At the end of the fiscal year, the usual adjusting entry for depreciation on equipment was omitted. Which of the Following is true? otal assets will be understated at the end of the current year the balance sheet and income statement will be misstated but the statement of stockholders' equity will be Sorrect for the current year . et income will be overstated for the current year otal liabilities and total assets will be understated At the end of the fiscal year, the usual adjusting entry to prepaid insurance to record expired insurance was mitted. Which of the following temen al assets at the end of the year will be understated. peckholders' equity at the end of the year will be understated. It income for the year will be overstated 1. Insurance pense will be overstated 5.Buster Industries pays weekly salaries of $30,000 on Friday for a five-day week ending on that day. The adjusting entry necessary at the end of the fiscal period ending on Tuesday is Sabit Salaries Payable. S12.000, credit Cash. 512.000 13. Scbit Salasy Expense. $12,000 credit Dividends, $12.000 Habit Salary Expense, $12,000 credit Salaries Payable, $12.000 11. Sabit Dividends. 512.000 credit Cash, $12.000 The supplies account had a balance of $4,400 at the beginning of the year and was debied during the year for $2,400 representing the total of supplies purchased during the year. I 5400 of supplies are on hand at the end of the year, the upplies expense to be reported on the income statement for the year is 2.00 M. 16.40 Prepaid expenses are eventually expected to become expenses when their future economie Value expires or is wed revenues when services are performed 13 expenses in the period when they are paid 11. fevenues when the liability is to knger ewed The following adjusting umal entry does not include an explanation Select the best explanation for the entry Supplies Expense Supplies Record supplies wed Record purchase of Redace supplies expense 11. Record sale of supplies 9. Which account would normally of require an adjusting entry 12 Wages Expense Accounts Receivable Accumulated Depreciation 11.sh 10. The adjusting entry for ym memberships cared that were previously recorded in the named gym memberships bocount is obit Uncamed Gym Memberships credit Gym Memberships Revenue Pit Gym Memberships Revenue credit Uncanned Gym Membership debet Uneamed Gym Memberships, credit Prepaid Gym Memberships 1. Scbit Gym Memberships Expense credit Uncanned Gym Memberships 11. At the end of the fiscal year, the usual adjusting entry to recognize accrued revenues was omitted. Which of the Following is trur? otal assets will be understated at the end of the current year e balance sheet and income statement will be misstated but the statement of stockholders' equity will be correct for the current year et income will be overstated for the current year 14. stal liabilities will be understated 12. Which of the following is considered to be an accrued espos! computer technician has installed the latest software updates and was paid on the same day computer technician has been paid in advance to install software updates as they become available computer technician has just signed an agreement with you regarding pricing for future work computer technician has installed the latest software updates, but you have not received an invoice or made payment 13. The cost of office supplies to be used in future periods is ordinanly shown on the balance sheet as an ockholders' squity asset pontra asset 14.sability 14. The accounttype and normal balance of Prepaid Expense Prevenue, Fredit expense, debit ability credit 14.asset det 15. Adjusting entries always include pnly income statement accounts nly balance sheet accounts she cash account M least one income statement account and one balance sheet account 16. The account type and normal balance of Uncamed Revenue is Feven, Fredit expense, debit Isability, credit et debit 17. The following adjusting journal entry found in the journal is missing an explanation Select the best explanation for the entry Interest Expense 2.200 Interest Payable Record accrual of interest on loan Record payment of interest on Fun Record interest duc on account 14. Record interest expense paid 18. Using accrual accounting, expenses are recorded and reported only When they are incurred, whether or not cash is paid 1. when they are incurred and paid at the same time they are paid before they are incurred 1. they are paid after they are incurred 9. Which of the following is not true regarding depreciation? 2. depreciation allocates the cost of a fixed asset over its estimated life lepreciation expense reflects the decrease in market value cash Var depreciation is an allocation not a valuation method 1. lepreciation expense does not measure changes in market value 30. The adjusting entry to record the depreciation of a building for the fiscal period debit Depreciation Expense, credit Building Jcbit Depreciation Expense; credit Accumulated Depreciation lebit Accumulated Depreciati, credit Depreciation sponse 19 Sebit Building credit lepreciation Expense 1. For the year ending December 31, Orion, Inc. mistakenly cmited adjusting entries for S1,500 of supplies that were sed, (2) uncared revenue of $4,200 that was camed and (3) insurance of $5,000 that expired. For the year ending December 31. What is the effect of these errors on revenues, expenses, and net income? revenues are overrated by $4,200 I. het income is overstated by S2,300 Isspenses are overstated by S6 500 expenses are understated by $3.500 22. The net income reported on the income statement is $58.000. However, adjusting entries have not been made at the end of the period for supplies expense of $2,200 and accrued salaries of S1,300. Net income, as corrected, is 58.00 5.80 11.354.50 13. Data for an adjusting entry described as "accrued revenue, S3,100 requires Hebit to Unearned Income and a credit to Accounts Receivable cbit Fees Farned and a credit Accounts Receivable bit to Accounts Receivable and a credit to Fees Eamed 12. Jebit Fees Earned and a credit Revenue 34. Accumulated Depreciation and Depreciation Expense are classified, respectively, as expense, contra esset, contra liability even, asset pontra asset expense 5. The following adjusting journal entry found in the journal is missing an explanation. Select the best explanation for the entry Taxes Expense 3,850 Taxes Payable 5.85 2999999999999999 || 2. Record payment of taxes. b. Record taxes expense incurred and to be paid in next period. 16. Record taxes paid in advance. d. Record tax bill received from government 26. If the equipment account has a balance of $80,400 and its accumulated depreciation account has a balance of $22,500, the book value of the equipment is a $102,90 10 b. $80,400 $57,900 d. $22,500 0 27. Ski Master Company pays weekly salaries of $18,000 on Friday for a five-day week ending on that day. Journalize the necessary adjusting entry at the end of the accounting period, assuming that the period ends on Wednesday. 28. Indicate with a Yes or No whether or not each of the following accounts would, under normal circumstances, require an adjusting entry. 1. Cash 2. Prepaid Expenses B. Depreciation Expense 4. Accounts Payable 5. Accumulated Depreciation 6. Equipment 7.00 19. Jordon James started J Consulting on January 1. The following are the account balance at the end of the first month of business, before adjusting entries were recorded Accounts Payable Accounts Receivable 790 6300 Les Revenue 4925 Equipment Commen Stock 15.00 Dividends 1.375 Prepaid Rent 4.000 Supplies djustment date: Supplies on hand at the end of the month $200 Unbilled consulting revenue, 5700 Rent expense for the month, 1,000 Depreciation equipment, 590 a) Prepare the required adjusting entries, wing accounts as needed b) Prepare an adjusted trial balance for Consulting as of January 31, Ch. 4 Indicate the answer choice thar best completes the statement or answer the question or the following steps of the accounting sycle, which top should be completed An adjusted trial balance is prepared . Transactions are posted to the ledger An unadjusted trial balance is prepared 2. Adjusting entries are journalized and posted to the leader Use the adjusted trial balance for Stockton Company below to answer the questions that follow Stockton Company Adjusted Trial Balance December 31 751 Accounts Receivable 2.100 Prepaid Expenses 700 Equipment 13.700 Accumulated Depreciation 1.100 Accounts Payable 1.90 Notes Payable 4,300 Common Stock 1.000 Retained amnings Dividends 790 Fees Eamed 9.250 vages Expense 2.500 Rent Expense 1. Utilities Expense 774 Depreciation Expense 250 Miscellaneous Expense 18 10.490.491 Determine the total assets 1825.13 $1683 b 2293 2001 Which of the items below does not appear on the end-of-period spreadsheet 1. adjusting entries The unadjusted trial alance 13 losing the 19. he dividends account 1. Astin Company has current assets of 582.530 total acts of S242,050, total net income of 558.340, current liabilities 572,120, and total liabilities of 205,300. Astin Company's current ratio is 1.9 III li 4 Uneamed Fees appear on the 11. Balance sheet in the current assets section alance sheet as a current liability palance sheet in the stockholders' equity cice 1. Income statement as revenue Which of the following accounts will not be closed to retained Earnings at the end of the fiscal year 1 Jilities Expense Fees Earned 13. Prepaid Insurance rance Astin Company has current assets of $82,530, total assets of S342,050, total net income of 58.340, current liabilities 572.120, and total liabilities of S205,300. Astin's Company's working capital is IF 10.41 $24.92 $36.57 P 68.65 The joumal entry to close the Fees Earned, 5750, and Rent Revenue, $175, accounts during the year-end closing procesul involve Whits to the accounts I credits to the two revenue accounts 1. debit to a general revenue account I credit to a general revenue 2. Which of the statements below indicates that a company camed a net income for the period? The sum of the credits exceeds the sum of the debits in the Balance Sheet columns on the end-of-period spreadsheet The sum of the credits exceeds the sum of the debits in the Income Statement column on the end-of-period preadsheet The sum of the debits exceeds the sum of the credits in the Income Statement columns on the end-of-period spreadsheet Cash inflows exceed cash outflows. 10. The balance sheet should be repared efore the income statement and the statement of stockholders' equity before the income statement and after the statement of stockholders Jequity bother the income statement and the statement of stockholders' equity 1. after the income statement and before the statement of stockholders equity 11. Which of the following is not an essential part of the accounting records the journal the ledger Is the chart of accounts the end of period spreadsheet Use the adjusted trial balance for Stockton Company below to answer the questions that follow Stockton Company Adjusted Trial Balance December 31 7.530 Accounts Recivable 2.100 Prepaid Expenses 700 Equipment 13,700 Accumulated Depreciation 1.100 Accounts Payable 1.900 Notes Payable 4300 Common Stock 1.000 Retained Earnings 12.940 Dividends 790 Fees Eamed 9.250 Wages Expense 2.500 Rent Expense 1.950 Utilities Expense 778 Depreciation Expense 250 Miscellaneous Expense Totals 30.490 10.490 12. Determine the net income (loss) for the period pet income $9.250 het los 5790 los 55.670 Het income 3.580 13. Notes receivable due in 390 days appear on the 1. balance sheet in the current assets section balance sheet in the noncurrent assets kection Falance sheet in the current liabilities section income statement as an expense 14. Moringa Products Corporation had common stock of SK20,000 and retained camnings of $1,250,000 on January 1. During the year $75,000 of common stock was issued. Dividends of $48.000 were paid. For the year ended December 31, Moringa reported a net income of 287.500. What is the retained earnings balance on December 31? 135.500 $1,489,50 2.405 30 52.480.50 estions that follow Use the adjusted trial balance for Stockton Company below to answer the Stockton Company Adjusted Trial Balance December 31 Cach 7.50 Accounts Receivable 2.100 Prepaid Expenses 700 Equipment 13.700 Accumulated Depreciation 1.100 Accounts Payable 1.900 Notes Payable Common Stock 1,000 Retained Earnings 12.940 Pividends 790 Fees Eamed Wages Expense 2.500 Rent Expense 1.966 Utilities Expose 778 Depreciation Expense 250 Miscellaneous expertise IRS Totals 3049010490 15. Determine the retained camnings ending balance 12.15 ISIS,73 P 56,480 $21,40 16. Which of the following groups are temporary accounts Cash. Dividends, Wages Payable Prepaid Insurance Equipment. Fees Eamed Common Stock Dividends, Retained Earnings 4. Rent Revenue, Fees Earned, Miscellaneous Expense 17. Accumulated Depreciation appears on the balance sheet in the current assets section palance sheet in the property, plant, and equipment section balance sheet in the long-term liabilities section 1. income statement as an operating expense 18. The statement of stockholders' equity should be prepared pefore the income statement and after the balance Wheet pefore the income statement and balance sheet lufter the income statement and balance sheet 1 bafter the income statement and before the balance 19. Closing entries 11. need not be journalized if adjusting entries are prepared need not be posted if the financial statements are prepared from the end-of-period spreadsheet Is are not needed if adjusting entries are prepared must be journalized and posted 20. The classified balance sheet will show which liability subsections: 13. current liabilities and long-term liabilities current liabilities and other liabilities pther liabilities and long-term liabilities present liabilities and tomorrow's abilities 1. What is the goal of the closing process? 1. To verify that all adjustments have been made to make sure all temporary accounts have a zero balance o move all equity accounts to retained Earnings 11.o end the accounting period with a profit 22. What is the major difference between the unadjusted trial balance and the adjusted trial balance? . The adjusted trial balance will show the net income (loss) as an additional account Unlike the adjusted trial balance, the unadjusted trial balance will continue with the end-of-period processing even if it is not in balance The adjusted trial balance includes the postings of the adjustments for the period in the balance of the accounts 1. The adjusted trial balance will be used to record the adjustments for the period. 3. After all of the account balances have been extended to the Balance Sheet columns of the the totals of the debit and credit columns show debits of $37,686 and credits of 41,101. This indicates that heither net income or loss can be calculated because it is found on the income statement the company has a net loss of $3.415 for the period he company has a net income of $3,415 for the period the amounts are out of balance and need to be corrected 20. The classified balance sheet will show which liability subsections current liabilities and long-term liabilities current liabilities and other liabilities other liabilities and long-term liabilities present liabilities and borrow's abilities 21. What is the goal of the closing process? o verify that all adjustments have been made Jo make sure all temporary accounts have a zero balance so move all equity accounts to Retained Earnings o end the accounting period with a profit 22. What is the major difference between the unadjusted trial balance and the adjusted trial balance! The adjusted trial balance will show the net income (los) as an additional account. Unlike the adjusted trial balance, the unadjusted trial balance will continue with the end-of-period processing even if it is not in balance The adjusted trial balance includes the postings of the adjustments for the period in the balance of the counts 1. The adjusted trial balance will be used to record the adjustments for the period 23. After all of the account balances have been extended to the Balance Sheet columns of the, the totals of the debit and credit columns show debits of $37,686 and credits of $41,101. This indicates that peither net income or loss can be calculated because it is found on the income Matement 13. he company has a net loss of $3,415 for the period the company has a net income of $3.415 for the period 11. he amounts are out of balance and need to be conected 24. After the accounts have been adjusted at January 31, the end of the fiscal year, the following balances are taken from the ledger of Harrison's Dog Walking Service Company: Common Stock $340,000 Retained Earnings 9,000 Dividends 6,000 Fees Earned 124,600 Wages Expense 29,000 Rent Expense 43,001 Supplies Expense 7.300 Miscellaneous Expense 5,700 Journalize the four entries required to close the accounts Date Description Debit Credit 0909 Learning. Powered by Core 290 Subjective Short Answer Use the information below to answer the question that follows. All nine transactions for Ralston Sports Co. for September, the first month of operations, are recorded in the following T accounts: Cash Common Stock 125,000 3 12,500||| 1) 25,000 711,900 57,600 99,700 10,500 87,000 Accounts Dividends Receivable 19) 19,700 & 7,000 4) 9.900 Fees Eamed Supplies 12.500 3) |4) 9.900 7) 11.900 Equipment (2) 9,500 (6 Operating Expenso 10,500 || Accounts Payable 57,600 29,500 32. Prepare an unadjusted trial balance, listing the accounts in their proper order. 33. For the following, mark a "D" if the following account normally has a debit balance and mark a "C" if the following paccount normally has a credit balance. 1. Notes Payable 2. Mortgage Payable 3. Dividends 4. Accounts Receivable 5. Common Stock 6. Rent Revenue 7. Uneamed Revenue 8. Utility Expense 9. Automobiles 34. Prepare a journal entry for the purchase of a truck on April 4 for $85,700, paying $15,000 cash and the remainder on account. Omit explanation