NS, CLASSROOM DEMONSTRATION ES, EXERCISES. AND PROBLEMS DISCUSSION QUESTIONS AND CRITICAL THINKING/ETHICAL CASE Worsets are required in every company's accounting cycle. Please disagree and explain why. 2. What is the purpose of adjusting accounts What is the relationship of internal transactions to the adjusting process 4 Explain how an adjustment can affect both the income statement and bala shect. Please give an example. 3. Why do we need the Accumulated Depreciation account? 0. Depreciation expense goes on the balance sheet. True or falsc? Why? 7. Each month the cost of accumulated depreciation grows while the cost of equipment goes up. Agree or disagree. Defend your position 8. Define accrued salaries. 9. Why don't the formal financial statements contain debit or credit columns 10. Explain how the financial statements are prepared from the worksheet. 11. Janet Fox, President of Angel Co., went to a tax seminar. One of the speakers at the seminar advised the audience to put off showing expenses until next year because doing so would allow them to take advantage of a new tax law. When Janet returned to the office, she called in her accountant, Frieda O'Riley. She told Frieda to forget about making any adjustments for salaries in the old year so more expenses could be shown in the new year. Frieda told her that putting off these expenses would not follow generally accepted accounting principles. Janet said she should do it anyway You make the call. Write your specific recommendations to Frieda Students! Make the grade with MyAccountingLab! Most of the exercises and problems marked with can be found on My AccountingLab. You can practise them as often as you want and many of them feature step-by-step guided solutions to help you find the night answer Excel templates for all questions are available on My AccountingLab in the Multimedia Library and Chapter Resources sections CLASSROOM DEMONSTRATION EXERCISES (Excel templates for all questions are available in My AccountingLab. Working pa select questions are available in the print Workbook.) Adjustment for Supplies CDEI Before adjustment Office Supplies Expense Office Supplies 700 en t y of applies shows 550 Terbuch is the autent for office supplies b. De consibe for this content What will be the balance of Office Supplies on the adjusted trial balance Adjustment for Prepaid Rent CO2 Before adjustment Prepaid Rent 1.200 Rent Expense Making adjustments for pregaid rest 11 min At year-end, expired rent is 5700 Required How much is the adjustment for Prepaid Rent? b. De a transaction analysis box for this adjustment. What will be the balance of Prepaid Rent on the adjusted trial balance Adjustment for Depreciation COEZ Before adjustment: opment Accumulated Depreciation Equipment 000 12.000 Making adjustments for depreciation (10 min Depreciation Expense, Equipment GEN For the current year, depreciation on equipment is 52,000. Required a. Which of the three T accounts is not affected? b. Which title is a contra-asset? c. Draw a transaction analysis box for this adjustment d. What will be the balance of each of these three accounts on the adjusted trial balance Adjustment for Accrued Salaries CBER Before adjustment Salaries Expense 1.400 Making adjustments for accrued salaries 10 min) Acceed Salaries G Accrued Salaries, 5300 Required . Drew a transaction analysis box for this adjustment h. What will be the balances of these two accounts on the adjusted trial balance THE ACCOUNTING CYCLE CONTINUED 13 NS, CLASSROOM DEMONSTRATION ES, EXERCISES. AND PROBLEMS DISCUSSION QUESTIONS AND CRITICAL THINKING/ETHICAL CASE Worsets are required in every company's accounting cycle. Please disagree and explain why. 2. What is the purpose of adjusting accounts What is the relationship of internal transactions to the adjusting process 4 Explain how an adjustment can affect both the income statement and bala shect. Please give an example. 3. Why do we need the Accumulated Depreciation account? 0. Depreciation expense goes on the balance sheet. True or falsc? Why? 7. Each month the cost of accumulated depreciation grows while the cost of equipment goes up. Agree or disagree. Defend your position 8. Define accrued salaries. 9. Why don't the formal financial statements contain debit or credit columns 10. Explain how the financial statements are prepared from the worksheet. 11. Janet Fox, President of Angel Co., went to a tax seminar. One of the speakers at the seminar advised the audience to put off showing expenses until next year because doing so would allow them to take advantage of a new tax law. When Janet returned to the office, she called in her accountant, Frieda O'Riley. She told Frieda to forget about making any adjustments for salaries in the old year so more expenses could be shown in the new year. Frieda told her that putting off these expenses would not follow generally accepted accounting principles. Janet said she should do it anyway You make the call. Write your specific recommendations to Frieda Students! Make the grade with MyAccountingLab! Most of the exercises and problems marked with can be found on My AccountingLab. You can practise them as often as you want and many of them feature step-by-step guided solutions to help you find the night answer Excel templates for all questions are available on My AccountingLab in the Multimedia Library and Chapter Resources sections CLASSROOM DEMONSTRATION EXERCISES (Excel templates for all questions are available in My AccountingLab. Working pa select questions are available in the print Workbook.) Adjustment for Supplies CDEI Before adjustment Office Supplies Expense Office Supplies 700 en t y of applies shows 550 Terbuch is the autent for office supplies b. De consibe for this content What will be the balance of Office Supplies on the adjusted trial balance Adjustment for Prepaid Rent CO2 Before adjustment Prepaid Rent 1.200 Rent Expense Making adjustments for pregaid rest 11 min At year-end, expired rent is 5700 Required How much is the adjustment for Prepaid Rent? b. De a transaction analysis box for this adjustment. What will be the balance of Prepaid Rent on the adjusted trial balance Adjustment for Depreciation COEZ Before adjustment: opment Accumulated Depreciation Equipment 000 12.000 Making adjustments for depreciation (10 min Depreciation Expense, Equipment GEN For the current year, depreciation on equipment is 52,000. Required a. Which of the three T accounts is not affected? b. Which title is a contra-asset? c. Draw a transaction analysis box for this adjustment d. What will be the balance of each of these three accounts on the adjusted trial balance Adjustment for Accrued Salaries CBER Before adjustment Salaries Expense 1.400 Making adjustments for accrued salaries 10 min) Acceed Salaries G Accrued Salaries, 5300 Required . Drew a transaction analysis box for this adjustment h. What will be the balances of these two accounts on the adjusted trial balance THE ACCOUNTING CYCLE CONTINUED 13