Why are adjusting entries recorded at the end of the accounting period? Multiple Choice The company's accounts must be adjusted to ensure that debits are equal to credits prior to preparing the trial balance. The Cash account must be adjusted for the effects of the daily transactions with customers and creditors. Unrecorded accruals and deferrals must be recognized before the financial statements can be prepared. The data from the temporary accounts (revenues, expenses, and dividends) must be moved into the retained earnings account. Saved A transaction has been recorded in the T-accounts of Powell Corporation as follows: Rent Expense Prepaid Rent Debit Credit: Debit Credit 1,000 1,000 Which of the following reflects how this event affects the company's financial statements? automatically Balance Sheet Income Statement Stockholders' Assets = Liabilities + Equity Revenue A. + N/A N/A Expense N/A Net Income N/A Statement of Cash Flows +FA B. C. N/A N/A N/A + N/A + N/A +0A D. N/A N/A -OA Multiple Choice Option A Option B < Previ 25 of 30 Next > The following is a random list of the adjusted account balances of Wyoming Company as of the end of the current accounting period; Cash Accounts Payable Land Operating Expenses 18,500 Accounts Receivable 5,200 Service Revenue 25,500 Retained Earnings 12,900 Common Stock 6,200 18,700 17,700 21,500 What is the total of the credit account balances that will be shown on the adjusted trial balance? Multiple Choice $64,100 $44,400 $62,100 $63,300 A transaction has been recorded in the T-accounts of Horowitz Corporation as follows: Cash Debit 25,000 Credit Common Stock Debit Credit 25,000 Which of the following reflects how this event affects the company's financial statements? Balance Sheet Income Statement Stockholders' Assets = Liabilities A. Equity N/A B. + C. N/A N/A N/A N/A Revenuel - Expense N/A Net Income Statement of Cash Flows N/A +FA N/A N/A +FA - N/A +0A D. N/A N/A -IA Multiple Choice Option A Option B Option D < Prev 27 of 30 Next > The following transaction has been recorded in the general journal: Account Title Interest Expense Interest Payable Debit Credit 150 150 How will this transaction affect the company's financial statements after it is posted to the ledger accounts? Multiple Choice Increases Retained Earnings Decreases Total Liabilities Decreases Stockholders' Equity Decreases Total Assets Saved On August 1, Year 1, Benjamin and Associates collected $18,000 in advance for legal services to be rendered for one year. Which of the following entries reflect the end-of-the-year adjustment to reflect revenue earned? Multiple Choice: 22 Mc Graw Hill Cash 7,500 Revenue 7,500 Unearned Revenue Revenue 7,500 7,500 Accounts Receivable Revenue 6,000 6,000 Cash 18,000 Unearned Revenue Revenue 10,500 7.500 < Previ 30 of 30 Next >