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ACC 290T Entire Course

ACC 290T Entire Course

PRINCIPLES OF ACCOUNTING I

 

The Latest Version 

 


ACC 290 Week 1 Practice Connect Knowledge Check (2019 New)

Complete the Week 1 Knowledge Check in Connect®.

Note: You have unlimited attempts available to complete this practice assignment. The highest scored attempt will be recorded.

These assignments have earlier due dates, so plan accordingly.

Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date.

 

The form of a business organization that is not affected by the withdrawal or death of an owner and can continue indefinitely is the

Multiple Choice

 

corporation.

 

sole proprietorship.

 

nonprofit organization.

 

partnership.

 

 

 

When the owner invests equipment in a business,

Multiple Choice

 

assets increase and owner’s equity decreases.

 

assets and owner’s equity increase.

 

assets and revenue increase.

 

liabilities decrease and owner’s equity increases.

 

 

 

The Statement of Owner’s Equity is calculated as follows:

Multiple Choice

 

beginning capital + net income + withdrawals + additional investments = ending capital

 

beginning capital + net loss − withdrawals + additional investments = ending capital

 

beginning capital + net income − withdrawals + additional investments = ending capital

 

beginning capital + net loss + withdrawals + additional investments = ending capital

 

 

 

 

The Financial Accounting Standards Board is responsible for

Multiple Choice

 

auditing financial statements.

 

developing generally accepted accounting principles.

 

establishing accounting systems for businesses.

 

making recommendations to the Securities and Exchange Commission.

 

 

 

The Balance Sheet heading includes each of the following except:

Multiple Choice

 

firm’s name.

 

title of the report.

 

date of the report.

 

firm’s address.

 

 

 

 

Tax planning includes

Multiple Choice

 

auditing tax returns.

 

correcting tax returns.

 

preparing tax returns.

 

suggesting actions to reduce tax liability.

 

 

 

 

Which of the following equations is the Fundamental Accounting Equation?

Multiple Choice

 

Assets – Liabilities = Owner’s Equity

 

Assets – Owner’s Equity = Liabilities

 

Assets + Liabilities = Owner’s Equity

 

Assets = Liabilities + Owner’s Equity

 

 

 

 

Tax accounting involves tax compliance and

Multiple Choice

 

tax configuration.

 

tax planning.

 

tax obfuscation.

 

tax evaluation.

 

 

 

 

Amounts that a business must pay in the future are known as:

Multiple Choice

 

capital.

 

liabilities.

 

assets.

 

expenses.

 

 

 

 

Identify the form of business that is considered a separate legal entity.

Multiple Choice

 

a limited liability partnership

 

a sole proprietorship

 

a partnership

 

a corporation

 

 

 

 

Which of the following is NOT a service of public accounting firms?

Multiple Choice

 

management advisory services

 

auditing

 

investment services

 

tax accounting

 

 

 

 

Which financial statement is reported as of a specific date?

Multiple Choice

 

Income Statement

 

Statement of Changes in Financial Position

 

Balance Sheet

 

Statement of Owner’s Equity

 

 

 

Identify the type of accounts that would appear on a firm’s income statement

Multiple Choice

 

revenues and expenses.

 

liabilities and expenses.

 

assets and liabilities.

 

assets and revenues.

 

 

 

 

A company issues periodic reports called

Multiple Choice

 

summaries.

 

financial statements.

 

tax returns.

 

audits.

 

 

 

 

Managerial accounting is

Multiple Choice

 

private accounting.

 

government accounting.

 

tax accounting.

 

public accounting.

 

 

 

 

Which of the following is NOT an area in which accountants usually practice?

Multiple Choice

 

Public Accounting

 

Governmental Accounting

 

Industrial Accounting

 

Managerial (Private) Accounting

 

 

 

 

All financial statements submitted to the SEC by publicly owned corporations must include an auditor’s report prepared by

Multiple Choice

 

an independent certified public accountant.

 

anyone in the accounting department.

 

the firm’s managerial accountant.

 

an internal auditor.

 

 

 

 

The group of accounting educators who offer their opinions about proposed FASB statements, after research has been done to determine the possible effects on financial reporting and the economy, is

Multiple Choice

 

the FCC.

 

the AICPA.

 

the SEC.

 

the AAA.

 

 

 

 

If the income statement covered a six-month period ending on November 30, 2019, the third line of the income statement heading would read:

Multiple Choice

 

Month Ended November 30, 2019.

 

November 30, 2019.

 

Six-month Period Ended November 30, 2019.

 

Month of November, 2019.

 

 

 

 

Which of the following is an example of an expense:

Multiple Choice

 

an owner withdrawal for personal use.

 

the receipt of cash from a credit customer.

 

the payment of a creditor on account.

 

the payment of the monthly utility bill.

 

 

 

 

Which financial statement is a representation of the accounting equation?

Multiple Choice

 

Balance Sheet

 

Income Statement

 

Statement of Owner’s Equity

 

Profit and Loss Statement

 

 

 

 

Which of the following is NOT a type of information communicated by the financial statements?

Multiple Choice

 

how much the business owes others

 

what types of assets business owns

 

how long the business has been in operation

 

whether or not the business is profitable

 

 

 

 

When the owner writes a company check to pay the company’s electric bill,

Multiple Choice

 

expenses increase and owner’s equity increases.

 

assets and owner’s equity decrease.

 

assets and liabilities decrease.

 

assets and owner’s equity increase.

 

 

 

 

The rent paid for future months is a(n):

Multiple Choice

 

liability.

 

expense.

 

revenue.

 

asset.

 

 

 

 

When the owner withdraws cash for personal use,

Multiple Choice

 

assets decrease and owner’s equity increases.

 

owner’s equity decreases and revenue decreases.

 

assets decrease and owner’s equity decreases.

 

assets decrease and expenses increase.

 

 

 

 

Choose the option below that reflects the correct order in which to prepare the three financial statements

Multiple Choice

 

Income Statement; Statement of Owner’s Equity; Balance Sheet.

 

Balance Sheet; Income Statement; Statement of Owner’s Equity.

 

Income Statement; Balance Sheet; Statement of Owner’s Equity.

 

Statement of Owner’s Equity; Balance Sheet; Income Statement.

 

 

 

 

Revenue by definition is:

Multiple Choice

 

an amount a business must pay in the future.

 

the payment of amounts owed to creditors.

 

amounts earned from the sale of goods or services.

 

the collection of amounts owed by customers.

 

 

 

 

Owners are not personally responsible for the debts of the business if the form of business organization is a

Multiple Choice

 

partnership.

 

sole proprietorship.

 

corporation.

 

nonprofit organization.

 

 

 

 

The financial activities of a business and the financial activities of the owners should be

Multiple Choice

 

combined in the firm’s accounting records.

 

combined only if the owner wants them to be.

 

reported in different parts of the firm’s accounting records.

 

kept totally and completely separate.

 

 

 

 

Managerial accountants usually do which of the following?

Multiple Choice

 

audit financial statements

 

prepare and audit tax returns

 

investigate companies for possible violations of law

 

prepare internal reports for management

 

 

 

The area of accounting that involves the preparation of internal reports for a firm’s executives and the analysis of the data in these reports to aid in decision making is known as

Multiple Choice

 

financial accounting.

 

managerial accounting.

 

auditing.

 

cost accounting.

 

 

 

 

Which of the following is a true statement in regards to the International Accounting Standards Board?

Multiple Choice

 

The IASB deals with issues caused by the lack of uniform accounting principles existing in different countries

 

The IASB was created by the American Accounting Association

 

The IASB develops all accounting principles to be used in the United States

 

The IASB has the authority to audit financial statements of all US corporations

 

 

 

 

Which of the following equations is the Fundamental Accounting Equation?

Multiple Choice

 

Assets + Liabilities = Owner’s Equity

 

Assets – Owner’s Equity = Liabilities

 

Assets = Liabilities + Owner’s Equity

 

Assets – Liabilities = Owner’s Equity

 

 

 

 

Examples of assets are:

Multiple Choice

 

cash and accounts receivable.

 

equipment and revenue.

 

accounts receivable and rent expense.

 

investments by the owner and revenue.

 

 

 

 

The statement of financial position is another term for which financial statement?

Multiple Choice

 

Income Statement

 

Statement of Owner’s Equity

 

Balance Sheet

 

Trial Balance

 

 

 

 

An Income Statement is all of the following except:

Multiple Choice

 

a formal report of business operations.

 

a profit and loss statement.

 

a statement of revenues less withdrawals and expenses.

 

a statement of income and expenses.

 

 

 

 

ACC 290 Week 1 Apply Connect Exercise (2019 New)
 

Review the Knowledge Check in preparation for this assignment.

Complete the Week 1 Exercise in Connect.

Note: You have only one attempt available to complete this assignment.

Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date.

 

 
 

 

 
 

Managerial accountants usually do which of the following?

Multiple Choice

 

audit financial statements

 

prepare and audit tax returns

 

prepare internal reports for management

 

investigate companies for possible violations of law

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The following financial data are for the dental practice of Dr. Donna Wells when she began operations in July.

 

 

 

Owes $18,900 to the Allen Equipment Company.
 

 

Has cash balance of $13,400.
 

 

Has dental supplies of $3,600.
 

 

Owes $4,130 to Contemporary Furniture Supply.
 

 

Has dental equipment of $26,450.
 

 

Has office furniture of $7,900.
 

 

 

Determine the amounts that would appear in Dr. Wells’ balance sheet.

 

 
 

 

 
 

 

During October, a firm had the following transactions involving revenue and expenses.
 

Paid $1,050 for rent for October

Provided services for $2,450 in cash

Paid $190 for the October telephone service

Provided services for $1,600 on credit

Paid salaries of $1,525 to employees

Paid $290 for the monthly office cleaning service

Calculate the net income or net loss for the period?

 

 

 
 

 

 
 

 

 
 

Guy McKinley started the McKinley Charter Service at the beginning of August 2019. On August 31, 2019, the accounting records of the business showed the following information.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Equipment
$
23,500
 
 
Rent Expense
$
6,000
 
Accounts Receivable
 
2,500
 
 
Cash
 
7,100
 
Fees Income
 
32,750
 
 
Salaries Expense
 
11,900
 
Boats
 
102,500
 
 
Utilities Expense
 
2,500
 
Gasoline Expense
 
8,700
 
 
Supplies
 
4,700
 
Loans Payable
 
81,000
 
 
Initial Investment
 
50,500
 
Owners’ Withdrawal
 
3,150
 
 
Accounts Payable
 
8,300
 
 
 

Prepare an income statement and a statement of owner’s equity for the month and a balance sheet as of August 31, 2019.

 

 
 

 

 
 

 

 
 

 

Required information
 

At the end of the first month of operations for SloMo Delivery Service, the business had the following accounts: Accounts Receivable, $1,210; Prepaid Insurance, $510; Equipment, $36,300 and Cash, $40,700. On the same date, SloMo owed the following creditors: Simpson Supply Company, $12,100; Allen Office Equipment, $9,550.

 

The total assets for the SloMo Delivery Service are:
 

 

The total amount of Liabilities is:
 

 

 
 

 

 
 

 

Required information
 

On September 1, Shawn Dahl established Whitewater Rentals, a canoe and kayak rental business. The following transactions occurred in the month of September and affected the following accounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Cash
 
Accounts Payable
 
Accounts Receivable
 
Shawn Dahl, Capital
 
Office Equipment
 
Revenue
 
Canoe and Kayak Equipment
 
Expenses
 
 
 

Transactions

 

 

 

Shawn Dahl invested $44,200 in cash to open the business
 

 

Paid $11,900 in cash for the purchase of kayak and canoe equipment
 

 

Paid $1,950 in cash for rent expense
 

 

Purchased additional kayak and canoe equipment for $4,700 on credit
 

 

Received $4,800 in cash for kayak rentals
 

 

Rented canoes and kayaks for $2,100 on account
 

 

Purchased office equipment for $215 in cash
 

 

Received $1,250 in cash from credit clients
 

 

Shawn Dahl withdrew $2,400 in cash for personal expenses
 

 

 

 

Based on the information shown above, what is the balance of Accounts Receivable for Whitewater Rentals at the end of September?
 

 

Based on the information above, complete the following accounting equation.
 

 

 
 

 

 
 

 

Required information
 

The table below shows the transactions for Sawyer Architecture Services during June. Greg Sawyer opened this business on June 1 with a capital investment of $74,500 (Transaction 1).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Assets
=
Liab.
+
Owner’s Equity
 
Transaction
Cash
 
Accts. 

Rec.
 
Supp.
 
Equip.
 
Accts. 

Pay.
 
G. Sawyer, 

Capital
 
Rev.
 
Exp.
 
1
+74,500
 
 
 
 
 
 
 
 
 
+74,500
 
 
 
 
 
2
− 8,700
 
 
 
 
 
+8,700
 
 
 
 
 
 
 
 
 
3
 
 
+5,700
 
 
 
 
 
 
 
 
 
+5,700
 
 
 
4
 
 
 
 
 
 
+4,180
 
+4,180
 
 
 
 
 
 
 
5
−3,750
 
 
 
 
 
 
 
 
 
 
 
 
 
−3,750
 
6
+ 720
 
−720
 
 
 
 
 
 
 
 
 
 
 
 
 
7
−2,900
 
 
 
 
 
 
 
 
 
−2,900
 
 
 
 
 
8
−500
 
 
 
+500
 
 
 
 
 
 
 
 
 
 
 
Bal
59,370
+
4,980
+
500
+
12,880
=
4,180
+
71,600
+
5,700

3,750
 
 
 

 

What was the net income or net loss for Sawyer Architecture Services for the month of June?
 

 

Prepare the statement of owner’s equity for Sawyer Architecture Services for the month ended June 30, 2019.
 

 

 
 

 

 
 

 

 
 

 

ACC 290 Week 2 Practice Connect Knowledge Check (2019 New)
 

Complete the Week 2 Knowledge Check in Connect®.

Note: You have unlimited attempts available to complete this practice assignment. The highest scored attempt will be recorded.

These assignments have earlier due dates, so plan accordingly.

Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date.

 

 
 

A business purchases equipment costing $5,500. They pay $1,500 right away and charge the remaining amount. To record this transaction, the business would:

Multiple Choice

 

Debit Equipment $5,500; Credit Cash $1,500 and Credit Accounts Payable $4,000

 

Debit Equipment $4,000; Credit Accounts Payable $4,000

 

Debit Equipment $5,500; Credit Accounts Payable $5,500

 

Debit Equipment $1,500; Credit Cash $1,500

 

 

 

A business pays a creditor on account. The entry to record this transaction is:

Multiple Choice

 

Debit Accounts Receivable; Credit Accounts Payable

 

Debit Cash; Credit Accounts Payable

 

Debit Accounts Receivable; Credit to Cash

 

Debit Accounts Payable; Credit Cash

 

 

 

The Net Income appears as a separate line item on what two statements?

Multiple Choice

 

the statement of owner’s equity and the income statement

 

the trial balance and the income statement

 

the statement of owner’s equity and the balance sheet

 

the income statement and the balance sheet

 

 

 

The normal balance of an account is the:

Multiple Choice

 

increase side of the account.

 

the left side of the account.

 

decrease side of the account.

 

the right side of the account.

 

 

 

 

When the trial balance totals are not equal, the error may have been caused by recording a debit as a credit if the difference is divisible by:

Multiple Choice

 

2.

 

9.

 

3.

 

5.

 

 

 

Which of the following transactions increase owner’s equity?

Multiple Choice

 

earning revenue

 

paying expenses

 

owner withdrawals for personal use

 

receiving cash from customers on account

 

 

 

Which of the following is not one of the formal financial statements that is made available to all users of the financial statements.

Multiple Choice

 

Statement of Owner’s Equity

 

Balance Sheet

 

Income Statement

 

Trial Balance

 

 

 

 

A business receives a bill for utilities but decides to pay it next month. The business would record the receipt of the bill by:

Multiple Choice

 

Debiting Utilities Expense; Crediting Accounts Receivable

 

Debiting Utilities Expense; Crediting Accounts Payable

 

Debiting Accounts Payable; Crediting Utilities Expense

 

Debiting Utilities Expense; Crediting Cash

 

 

 

Which of the following represents the proper sequence for preparing the financial statements?

Multiple Choice

 

income statement, statement of owner’s equity, balance sheet

 

statement of owner’s equity, income statement, balance sheet

 

income statement, balance sheet, statement of owner’s equity

 

balance sheet, statement of owner’s equity, income statement

 

 

 

 

 

The classification and normal balance of the accounts receivable account is:

Multiple Choice

 

a revenue with a debit balance.

 

an asset with a debit balance.

 

a liability with a debit balance.

 

an asset with a credit balance.

 

 

 

 

The ABC Company paid cash on account for supplies purchased last month. This would be recorded in the T-accounts as a:

Multiple Choice

 

debit Accounts Receivable and credit Cash.

 

debit to Accounts Payable and credit Cash.

 

debit Supplies and credit Accounts Payable.

 

debit Cash and credit Supplies.

 

 

 

The account used to record increases in owner’s equity from the sale of goods or services is:

Multiple Choice

 

the drawing account.

 

the cash account.

 

the fees income account.

 

the capital account.

 

 

 

Which of the following does NOT describe a transposition?

Multiple Choice

 

It involves misplaced digits in a number.

 

It causes the difference between the debit total and the credit total to be divisible by 2.

 

It causes the trial balance to be out of balance.

 

It is an error.

 

 

 

 

A business earns $4,000 from various charge account clients. To record this transaction, the business would:

Multiple Choice

 

Debit Accounts Receivable; Credit Cash

 

Debit Accounts Payable; Credit Fees Income

 

Debit Accounts Receivable; Credit Fees Income

 

Debit Cash; Credit Accounts Receivable

 

 

 

Debits are used to record increases in:

Multiple Choice

 

assets and expenses.

 

assets and revenue.

 

revenue and owner’s equity.

 

assets and liabilities.

 

 

 

 

Which of the following would cause the Debit column and the Credit column of the Trial Balance to be unequal?

Multiple Choice

 

Placing the Fees Income balance in the Credit column

 

Placing the Office Equipment balance in the Debit column

 

Placing the Prepaid Rent balance in the Credit column

 

Placing the Rent Expense balance in the Debit column

 

 

 

Which of the following accounts is NOT a nominal account?

Multiple Choice

 

Moriah Paige, Drawing

 

Office Supplies

 

Salaries Expense

 

Rent Revenue

 

 

 

 

When charge customers pay cash to apply against their accounts, the amount is recorded:

Multiple Choice

 

on the left side of the Cash account and the right side of the Accounts Receivable account.

 

on the left side of the Cash account and the left side of the Accounts Receivable account.

 

on the left side of the Accounts Payable account and the right side of the Cash account.

 

on the left side of the Cash account and the right side of the Fees Income account.

 

 

 

 

The “Net Income” or “Net Loss” is transferred from the income statement to the

Multiple Choice

 

balance sheet.

 

statement of owner’s equity.

 

chart of accounts.

 

trial balance.

 

 

 

Which of the following types of accounts normally have debit balances?

Multiple Choice

 

assets, liabilities, and owner’s equity

 

expenses and assets

 

assets and revenue

 

liabilities and owner’s equity

 

 

 

Which of the following entries records the withdrawal of cash for personal use by Ty Knott, the owner of a business?

Multiple Choice

 

debit Cash and credit Ty Knott, Capital

 

debit Cash and credit Salary Expense

 

debit Salary Expense and credit Cash

 

debit Ty Knott, Drawing, and credit Cash

 

 

 

 

An accounting system that involves recording the effects of each transaction as debits and credits is:

Multiple Choice

 

completing one T account.

 

analyzing a business transaction.

 

the double-entry system.

 

preparing financial statements.

 

 

 

 

A business performed $8,000 of services. Their customer paid $3,000 of the amount right away but charged the remaining amount. To record this transaction, the business would:

Multiple Choice

 

Debit Accounts Receivable $8,000 and; Credit Fees Income $8,000

 

Debit Cash $3,000 and Debit Accounts Receivable $5,000 and Credit Fees Income $8,000

 

Debit Cash $3,000 and Debit Accounts Payable $5,000; Credit Fees Income $8,000

 

Debit Cash $3,000; Credit Fees Income $3,000

 

 

 

 

The total of the figures on the left side of a Cash account is $36,700. The total of the figures on the right side is $16,250. The balance of this account:

Multiple Choice

 

is $20,450 and would be recorded on the right side of the account.

 

is $52,950 and would be recorded on the left side of the account.

 

is $20,450 and would be recorded on the left side of the account.

 

is $52,950 and would be recorded on the right side of the account.

 

 

 

 

On a statement of owner’s equity, beginning capital is $152,000, Drawing for the year is $65,000, and the ending capital is $191,000. What is the amount of Net Income for the year?

Multiple Choice

 

$126,000

 

$ 26,000

 

$104,000

 

$ 87,000

 

 

 

 

Credits are used to record:

Multiple Choice

 

decreases in assets and owner’s equity and increases in liabilities.

 

decreases in liabilities and increases in assets and owner’s equity.

 

increases in liabilities and revenues.

 

increases in assets, liabilities, and owner’s equity.

 

 

 

 

The ending capital balance appears on what financial statement(s)

Multiple Choice

 

income statement and balance sheet.

 

income statement and the statement of owner’s equity.

 

statement of owner’s equity and the balance sheet.

 

only on the balance sheet.

 

 

 

 

A business purchases supplies on account. The entry to record this transaction is:

Multiple Choice

 

Debit to Supplies; Credit Accounts Receivable

 

Debit Supplies; Credit Accounts Payable

 

Debit Supplies; Credit to Cash

 

Debit to Cash; Credit Supplies

 

 

 

 

Which of the following would cause the Trial Balance to be out of balance?

Multiple Choice

 

Placing the Rent Expense account balance in the Debit column

 

Placing the Accounts Receivable balance in the Credit column

 

Placing the Equipment account balance in the Debit column

 

Placing the Capital account balance in the Credit column

 

 

 

 

Select the entry below to record the payment to employees for work performed during the pay period?

Multiple Choice

 

debit Cash, and credit Accounts Receivable

 

debit Salary Expense and credit Cash

 

debit Cash and credit Salary Expense

 

debit Salary Expense and credit Accounts Receivable

 

 
 

 

 
 

 

ACC 290 Week 2 Apply Connect Exercise (2019 New)
 

Review the Knowledge Check in preparation for this assignment.

Complete the Week 2 Exercise in Connect®.

Note: You have only one attempt available to complete this assignment.

Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date.

The account balances from the December 31, 2019, trial balance for Haman Accounting Services are shown below.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HAMAN ACCOUNTING
 
Trial Balance
 
December 31, 2019
 
ACCOUNT NAME
DEBIT
 
CREDIT
 
Cash
7,000
 
 
 
Accounts Receivable
3,000
 
 
 
Supplies
2,000
 
 
 
Prepaid Rent
22,000
 
 
 
Equipment
21,000
 
 
 
Accounts Payable
 
 
8,600
 
Erik Haman, Capital
 
 
28,500
 
Erik Haman, Drawing
4,000
 
 
 
Fees Income
 
 
28,000
 
Salaries Expense
4,000
 
 
 
Utilities Expense
2,100
 
 
 
Totals
65,100
 
65,100
 
 
 

 

 

 

 

Prepare an income statement for the Haman Accounting Services for the month ended December 31, 2019.
 

 

Prepare a statement of owner’s equity for Haman Accounting Services for the month ended December 31, 2019.
 

 

Prepare a balance sheet for Haman Accounting Services as of December 31, 2019.
 

 

 

 

The consulting firm of Martin and Associates uses the accounts listed below. Record the opening balances as of December 1, 2019 on the normal balance side of the following T-Accounts. List of accounts with their opening balances:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 
 
 
 
 
Cash
$
5,300
 
Fees Income
-0-
Accounts Receivable
 
8,300
 
Rent Expense
-0-
Office Equipment
 
7,800
 
Utilities Expense
-0-
Accounts Payable
 
5,800
 
Salaries Expense
-0-
Joan Martin, Capital
 
15,600
 
 
 
Joan Martin, Drawing
 
-0-
 
 
 
 
 

The firm has the following transactions during the month of December 2019. Record the effects of these transactions in the T accounts.

 

 

 

Paid $1,300 for one month’s rent.
 

 

Collected $5,100 in cash from credit customers.
 

 

Performed services for $7,300 in cash.
 

 

Paid $4,300 for salaries.
 

 

Issued a check for $3,300 to a creditor.
 

 

Performed services for $10,300 on credit.
 

 

Purchased office equipment for $1,300 on credit.
 

 

The owner withdrew $3,300 in cash for personal expenses.
 

 

Issued a check for $630 to pay the monthly utility bill.
 

 

 

 

 
 

 

 
 

 

 
 

Anderson Cleaning Service has the following account balances on December 31, 2019.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Cash
$
19,000
 
 
Accounts Payable
$
24,200
 
Equipment
$
46,000
 
 
Charles Anderson, Capital
$
40,800
 
 
 

 

 
 

 

 
 

Derrick Wells decided to start a dental practice. The first five transactions for the business follow.

 

 

 

Derrick invested $75,000 cash in the business.
 

 

Paid $15,000 in cash for equipment.
 

 

Performed services for cash amounting to $7,500.
 

 

Paid $2,300 in cash for advertising expense.
 

 

Paid $1,500 in cash for supplies.
 

 

 

(1) Select which two accounts are affected in each of the above transactions.

(2&3) Post the above transactions into the appropriate T accounts.

 

 
 

 

 
 

 

Required information
 

[The following information applies to the questions displayed below.]

The accounts and balances for Paw Prints Pet Sitters on November 1 are provided below.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 
 
 
 
Cash
19,700
 
Fees Income
-0-
Accounts Receivable
860
 
Rent Expense
-0-
Office Equipment
2,600
 
Utilities Expense
-0-
Supplies
260
 
Salaries Expense
-0-
Accounts Payable
1,600
 
 
 
Kelly Connor, Capital
21,820
 
 
 
Kelly Connor, Drawing
-0-
 
 
 
 
 

The following transactions occurred during the month of November.

 

 

 

Collected $360 from credit customers.
 

 

Issued a check for $770 for November’s rent.
 

 

Paid $1,690 for salaries.
 

 

The owner withdrew $570 in cash for personal expenses.
 

 

Issued a check for $210 to pay the monthly utility bill.
 

 

Received $2,730 in cash for services performed.
 

 

Purchased office equipment for $1,360 on credit.
 

 

 

 

 
 

 

 
 

 

ACC 290 Week 3 Practice Connect Knowledge Check (2019 New)
 

Complete the Week 3 Knowledge Check in Connect.

Note: You have unlimited attempts available to complete this practice assignment. The highest scored attempt will be recorded.

These assignments have earlier due dates, so plan accordingly.

Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date.

 

 
 

The journal entry to record the purchase of equipment for a $100 cash down payment and a balance of $400 due in 30 days would include:

Multiple Choice

 

 

 

 
 

 

 

a debit to Equipment for $100 and a credit to Accounts Payable for $400.

 

 

 

 
 

 

 

debit to Equipment for $500 and a credit to Cash for $500.

 

 

 

 
 

 

 

a debit to Equipment for $500, a credit to Cash for $100, and a credit to Accounts Payable for $400.

 

 

 

 
 

 

 

a debit to Equipment for $100 and a credit to Cash for $100.

 

 

 

Which of the following statements is CORRECT?

Multiple Choice

 

 

 

 
 

 

 

Compound entries include only debits.

 

 

 

 
 

 

 

Accounts being debited should always follow the accounts being credited in a compound entry.

 

 

 

 
 

 

 

Compound entries affect more than one debit and/or more than one credit.

 

 

 

 
 

 

 

All transactions require compound entries.

 

 

 

The account numbers from the ledger are recorded in the Posting Reference column of the general journal:

Multiple Choice

 

 

 

 
 

 

 

after each amount is posted.

 

 

 

 
 

 

 

as the transaction is journalized.

 

 

 

 
 

 

 

after all entries on the journal page have been posted.

 

 

 

 
 

 

 

as the first amount written in the journal.

 

 

 

 

 

The journal entry to record the performance of services for cash would include:

Multiple Choice

 

 

 

 
 

 

 

a debit to Fees Income and a credit to Cash.

 

 

 

 
 

 

 

a debit to Cash and a credit to Accounts Receivable.

 

 

 

 
 

 

 

a debit to Cash and a credit to Fees Income.

 

 

 

 
 

 

 

a debit to Accounts Receivable and a credit to Cash.

 

 

 

 

If the owner of the business wants to see both the debit and credit entry for a specific transaction, he would look in:

Multiple Choice

 

 

 

 
 

 

 

the journal

 

 

 

 
 

 

 

the source document

 

 

 

 
 

 

 

the ledger

 

 

 

 
 

 

 

the chart of accounts

 

 

 

 

Anna Conda Landscaping service received a bill for the utilities used during September. The bill will be paid in October. The journal entry to record the utility bill received is:

Multiple Choice

 

 

 

 
 

 

 

Debit Cash; Credit Utilities Expense

 

 

 

 
 

 

 

Debit Accounts Payable; Credit Cash

 

 

 

 
 

 

 

Debit Utilities Expense; Credit Accounts Payable

 

 

 

 
 

 

 

Debit Utilities Expense; Credit Cash

 

 

 

 

Transactions in a journal are initially recorded in:

Multiple Choice

 

 

 

 
 

 

 

alphabetical order.

 

 

 

 
 

 

 

dollar amount order.

 

 

 

 
 

 

 

chronological order.

 

 

 

 
 

 

 

randomly.

 

 

 

 

When recording a business transaction into the general ledger, certain steps are followed. Identify the statement below that is NOT CORRECT regarding this process.

Multiple Choice

 

 

 

 
 

 

 

After posting a transaction, the new balance in an account can be seen in the general ledger.

 

 

 

 
 

 

 

The process of transferring data from the journal to the ledger is called posting.

 

 

 

 
 

 

 

All transactions are recorded first in the general journal and then they are transferred to the general ledger.

 

 

 

 
 

 

 

All transactions are recorded first in the general ledger and then they are transferred to the journal.

 

 

 

 

When recording a business transaction into the journal, certain steps are followed. Identify the statement below that is CORRECT regarding the journalizing process.

Multiple Choice

 

 

 

 
 

 

 

All transactions are recorded first in the general ledger and then they are journalized in the journal.

 

 

 

 
 

 

 

All credited accounts are listed first and then all debited accounts are indented and listed on the next lines.

 

 

 

 
 

 

 

An explanation is indented and entered on the line underneath the last credit in the entry.

 

 

 

 
 

 

 

No dates are used in the journal.

 

 

 

Constantine Corporation reported Net Income for the year ended December 31, 2019, of $23,760 then discovered that the entry to pay the rent for December in the amount of $1,600 was not journalized and posted. What is the Net Income after the correcting journal entry is journalized and posted?

Multiple Choice

 

 

 

 
 

 

 

$20,560

 

 

 

 
 

 

 

$23,760

 

 

 

 
 

 

 

$22,160

 

 

 

 
 

 

 

$25,360

 

 

 

 

Which of the following statements is NOT correct?

Multiple Choice

 

 

 

 
 

 

 

If goods are purchased on credit, the supplier’s invoice number is used as the source document for the transaction.

 

 

 

 
 

 

 

The description of a journal entry should include a reference to the source of the information contained in the entry.

 

 

 

 
 

 

 

The credit portion of a general journal entry is always recorded first.

 

 

 

 
 

 

 

A firm should be able to trace amounts through the accounting records and back to their source documents.

 

 

 

 

Bertrand Inc. performed services for clients in the amount of $1,350 on credit. If this transaction had been posted in error to the Cash account instead of the Accounts Receivable account, what correcting entry would be necessary?

Multiple Choice

 

 

 

 
 

 

 

Debit Accounts Receivable $1,350; credit Cash $1,350

 

 

 

 
 

 

 

Debit Fees Income $1,350; credit Cash $1,350

 

 

 

 
 

 

 

Debit Cash $1,350; credit Accounts Receivable $1,350

 

 

 

 
 

 

 

Debit Accounts Receivable $1,350; credit Fees Income $1,350

 

 

 

 

The journal entry to record the payment of the monthly rent would include:

Multiple Choice

 

 

 

 
 

 

 

a debit to Rent Expense and a credit to Cash.

 

 

 

 
 

 

 

a debit to Capital and a credit to Cash.

 

 

 

 
 

 

 

a debit to Rent Expense and a credit to Capital.

 

 

 

 
 

 

 

a debit to Rent Expense and a credit to Accounts Receivable.

 

 

 

 

Agatha Panthis Landscape Architect Company earned $2,500 of revenue collecting $1,000 immediately and will collect the remaining amount in 30 days. The journal entry to record this transaction is:

 

rev: 12_08_2017_QC_CS-111818

Multiple Choice

 

 

 

 
 

 

 

Debit Fees Income $2,500; Credit Accounts Receivable $2,500

 

 

 

 
 

 

 

Debit Cash $1,000; Credit Fees Income $1,000

 

 

 

 
 

 

 

Debit Cash $1,000; Debit Accounts Receivable $1,500; Credit Fees Income $2,500

 

 

 

 
 

 

 

Debit Fees Income $2,500; Credit Cash $1,000; credit Accounts Receivable $1,500

 

 

 

 

Which of the following statements is CORRECT?

Multiple Choice

 

 

 

 
 

 

 

Some companies use the general ledger instead of a general journal.

 

 

 

 
 

 

 

The general ledger contains the accounts that are used to prepare the financial statements.

 

 

 

 
 

 

 

When entries are posted from the general journal to the general ledger, the account number is written in the Posting Reference column in the general ledger.

 

 

 

 
 

 

 

When entries are posted from the general journal to the general ledger, the page number is written in the Posting Reference column in the general journal.

 

 

 

 

 

The accounts on the Trial Balance are always listed in the following order:

Multiple Choice

 

 

 

 
 

 

 

Assets, Liabilities, Equity, Revenue, Expense

 

 

 

 
 

 

 

Assets, Equity, Expense, Liabilities, Revenue

 

 

 

 
 

 

 

Expense, Revenue, Equity, Liabilities, Assets

 

 

 

 
 

 

 

Assets, Expense, Liabilities, Equity, Revenue

 

 

 

 

If the owner of the business wants to see both the debit and credit entry for a specific transaction, he would look in:

Multiple Choice

 

 

 

 
 

 

 

the ledger

 

 

 

 
 

 

 

the chart of accounts

 

 

 

 
 

 

 

the source document

 

 

 

 
 

 

 

the journal

 

 

 

 

On December 5, Honor Consulting Services issued a check to purchase $1,800 of office equipment. The journal entry to record this transaction is:

Multiple Choice

 

 

 

 
 

 

 

 

Office Equipment    $   1,800

Accounts Receivable        $   1,800

________________________________________

 

 

 

 
 

 

 

 

Cash    $   1,800

Accounts Payable           $   1,800

________________________________________

 

 

 

 
 

 

 

 

Office Equipment    $   1,800

Cash           $   1,800

________________________________________

 

 

 

 
 

 

 

 

Cash    $   1,800

Office Equipment           $   1,800

________________________________________

 

 

 

Which of the following statements is CORRECT?

Multiple Choice

 

 

 

 
 

 

 

If an error in a journal entry is discovered before the entry is posted to the general ledger, a journal entry should be made to correct the erroneous entry.

 

 

 

 
 

 

 

If an error in a journal entry is discovered before the entry is posted to the general ledger, the error in the entry should be crossed out and the correct data written above it.

 

 

 

 
 

 

 

All errors made in journal entries should be corrected by the preparation of a correcting journal entry.

 

 

 

 
 

 

 

If an error in a journal entry is discovered before the entry is posted to the general ledger, the entry can simply be erased and replaced with the correct journal entry.

 

 

 

 

On December 1, the Accounts Receivable account had a $22,000 debit balance.  During December the business earned $10,500 in revenue on account and collected $13,200 from its charge-account customers. After posting these transaction, the balance in the Accounts Receivable account on December 31 is:

Multiple Choice

 

 

 

 
 

 

 

a $24,700 credit balance.

 

 

 

 
 

 

 

a $23,700 credit balance.

 

 

 

 
 

 

 

a $19,300 debit balance.

 

 

 

 
 

 

 

a $24,700 debit balance.

 

 

 

 

Bertrand Inc. purchased some shop equipment for $4,500 in cash. By mistake, the journal entry debited the Office Equipment account rather than the Shop Equipment account. What correcting entry would be necessary?

Multiple Choice

 

 

 

 
 

 

 

Debit Shop Equipment $4,500; credit Office Equipment $4,500

 

 

 

 
 

 

 

Debit Office Equipment $4,500; credit Shop Equipment $4,500

 

 

 

 
 

 

 

Debit Cash $4,500; credit Shop Equipment $4,500

 

 

 

 
 

 

 

Debit Office Equipment $4,500; credit Cash $4,500

 

 

 

 

The general ledger accounts are usually arranged in the following order:

Multiple Choice

 

 

 

 
 

 

 

first the temporary accounts, then the permanent accounts.

 

 

 

 
 

 

 

first the accounts with debit balances, then the accounts with credit balances.

 

 

 

 
 

 

 

first the accounts used most often, then those used less frequently.

 

 

 

 
 

 

 

first the balance sheet accounts, then the income statement accounts.

 

 

 

 

A company purchased equipment costing $15,000. They paid $1,000 right away and agreed to pay the balance in 30 days, the journal entry to record the purchase of equipment would include:

Multiple Choice

 

 

 

 
 

 

 

a debit to Equipment for $15,000, a credit to Cash for $1,000 and a credit to Accounts Payable for $14,000.

 

 

 

 
 

 

 

a debit to Equipment for $15,000 and a credit to Cash for $15,000.

 

 

 

 
 

 

 

a debit to Equipment for $1,000 and a credit to Cash for $1,000.

 

 

 

 
 

 

 

a debit to Equipment for $14,000 and a credit to Accounts Payable for $14,000.

 

 

 

 

On December 10, Yummy Catering purchased a new oven costing $10,000. They issued a check a check for $2,000 and promised to pay the balance in 30 days. The journal entry to record this transaction is:

Multiple Choice

 

 

 

 
 

 

 

 

Equipment   $   2,000

Accounts Payable           $   8,000

________________________________________

 

 

 

 
 

 

 

 

Equipment   $   8,000

Cash           $   8,000

________________________________________

 

 

 

 
 

 

 

 

Equipment   $   8,000

Cash    $   2,000

Accounts Payable           $   10,000

________________________________________

 

 

 

 
 

 

 

 

Equipment   $   10,000

Cash           $   2,000

Accounts Payable           $   8,000

________________________________________

 

 

 

 

Anna Conda Landscaping service received a bill for the utilities used during September. The bill will be paid in October. The journal entry to record the utility bill received is:

Multiple Choice

 

 

 

 
 

 

 

Debit Utilities Expense; Credit Accounts Payable

 

 

 

 
 

 

 

Debit Accounts Payable; Credit Cash

 

 

 

 
 

 

 

Debit Utilities Expense; Credit Cash

 

 

 

 
 

 

 

Debit Cash; Credit Utilities Expense

 

 

 

The Cash account has a $15,000 debit balance. A $5,000 credit entry and a $7,000 debit entry are posted to the account. The final balance of the Cash account is:

Multiple Choice

 

 

 

 
 

 

 

a $13,000 debit balance.

 

 

 

 
 

 

 

a $3,000 debit balance.

 

 

 

 
 

 

 

a $27,000 debit balance.

 

 

 

 
 

 

 

a $17,000 debit balance.

 

 

 

 

Which of the following statements is CORRECT?

Multiple Choice

 

 

 

 
 

 

 

All errors made in journal entries should be corrected by the preparation of a correcting journal entry.

 

 

 

 
 

 

 

If an error in a journal entry is discovered before the entry is posted to the general ledger, a journal entry should be made to correct the erroneous entry.

 

 

 

 
 

 

 

If an error in a journal entry is discovered before the entry is posted to the general ledger, the error in the entry should be crossed out and the correct data written above it.

 

 

 

 
 

 

 

If an error in a journal entry is discovered before the entry is posted to the general ledger, the entry can simply be erased and replaced with the correct journal entry.

 

 

 

 

On December 1, the Accounts Receivable account had a $22,000 debit balance.  During December the business earned $10,500 in revenue on account and collected $13,200 from its charge-account customers. After posting these transaction, the balance in the Accounts Receivable account on December 31 is:

Multiple Choice

 

 

 

 
 

 

 

a $24,700 debit balance.

 

 

 

 
 

 

 

a $19,300 debit balance.

 

 

 

 
 

 

 

a $23,700 credit balance.

 

 

 

 
 

 

 

a $24,700 credit balance.

 

 

 

 

When an entry is made in the general journal,

Multiple Choice

 

 

 

 
 

 

 

the first account entered should be indented.

 

 

 

 
 

 

 

asset accounts should be indented.

 

 

 

 
 

 

 

the accounts to be credited should be indented.

 

 

 

 
 

 

 

liability, capital, and revenue accounts should be indented.

 

 

 

 

When recording a business transaction into the journal, certain steps are followed. Identify the statement below that is CORRECT regarding the journalizing process.

Multiple Choice

 

 

 

 
 

 

 

All transactions are recorded first in the general ledger and then they are journalized in the journal.

 

 

 

 
 

 

 

No dates are used in the journal.

 

 

 

 
 

 

 

An explanation is indented and entered on the line underneath the last credit in the entry.

 

 

 

 
 

 

 

All credited accounts are listed first and then all debited accounts are indented and listed on the next lines.

 

 

 
 

 

ACC 290 Week 3 Apply Connect Exercise (2019 New)
 

Review the Knowledge Check in preparation for this assignment.

Complete the Week 3 Exercise in Connect®.

Note: You have only one attempt available to complete this assignment.

Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date

 

Selected activity of Mason Consulting Services follow.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DATE
TRANSACTIONS
2019
 
Sept.
1
Zack Mason invested $47,000 in cash to start the firm.
 
 
4
Purchased office equipment for $5,200 on credit from Den, Inc.; received Invoice 9823, payable in 30 days.
 
 
16
Purchased an automobile that will be used to visit clients; issued Check 1001 for $13,200 in full payment.
 
 
20
Purchased supplies for $390; paid immediately with Check 1002.
 
 
23
Returned damaged supplies for a cash refund of $105.
 
 
30
Issued Check 1003 for $2,900 to Den, Inc., as payment on account for Invoice 9823.
 
 
30
Withdrew $1,700 in cash for personal expenses.
 
 
30
Issued Check 1004 for $1,050 to pay the rent for September.
 
 
30
Performed services for $2,900 in cash.
 
 
30
Paid $370 for monthly telephone bill, Check 1005.
 

Prepare journal entries for the transactions incurred during September of 2019.

 

 

 

Selected activity of Mason Consulting Services follow.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DATE
TRANSACTIONS
2019
 
Sept.
1
Zack Mason invested $58,000 in cash to start the firm.
 
 
4
Purchased office equipment for $6,300 on credit from Den, Inc.; received Invoice 9823, payable in 30 days.
 
 
16
Purchased an automobile that will be used to visit clients; issued Check 1001 for $14,300 in full payment.
 
 
20
Purchased supplies for $500; paid immediately with Check 1002.
 
 
23
Returned damaged supplies for a cash refund of $160.
 
 
30
Issued Check 1003 for $3,600 to Den, Inc., as payment on account for Invoice 9823.
 
 
30
Withdrew $2,800 in cash for personal expenses.
 
 
30
Issued Check 1004 for $1,600 to pay the rent for September.
 
 
30
Performed services for $2,650 in cash.
 
 
30
Paid $425 for monthly telephone bill, Check 1005.
 

Post the above transactions into the appropriate Ledger accounts.

 

 

 

The following transactions took place at the Cook Employment Agency during November 2019.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DATE
 
TRANSACTIONS
Nov.
5
 
Performed services for Job Search, Inc., for $21,000; received $9,500 in cash and the client promised to pay the balance in 60 days.
 
18
 
Purchased a graphing calculator for $330 and some supplies for $480 from Office Supply; issued Check 1008 for the total.
 
23
 
Received Invoice 1602 for $1,150 from Automotive Technicians Repair for repairs to the firm’s automobile; issued Check 1009 for half the amount and arranged to pay the other half in 30 days.
 

Prepare journal entries for the above transactions.

 

 

 

 

 

On June 10, 2019, an employee of Williams Corporation mistakenly debited Telephone Expense rather than Utilities Expense when recording a bill of  $900 for the May utility service. The error was discovered on June 30. Prepare a general journal entry to correct the error.

 

 

 

 

On August 22, 2019, an employee of Bell Company mistakenly debited the Repair Expense account rather than the Truck Expense account when recording a bill of $710 for repairs. The error was discovered on October 1. Prepare a general journal entry to correct the error.

 

 

 

 

The journal entry to record the purchase of equipment for a $210 cash down payment and a balance of $620 due in 30 days would include

Multiple Choice

 

a debit to Equipment for $210 and a credit to Cash for $210.

debit to Equipment for $830 and a credit to Cash for $830.

a debit to Equipment for $210 and a credit to Accounts Payable for $620.

a debit to Equipment for $830, a credit to Cash for $210, and a credit to Accounts Payable for $620.

 

 

 

 

The Accounts Payable account has a $4,300 credit balance. An entry for the payment of $1,650 on the amount owed is recorded and posted. The new balance of the Accounts Payable account is

Multiple Choice

 

a $2,650 credit balance.

a $5,950 debit balance.

a $2,650 debit balance.

a $5,950 credit balance.

 

 

 

 

 

Bertrand Inc. performed services for clients in the amount of $2,050 on credit. If this transaction had been posted in error to the Cash account instead of the Accounts Receivable account, what correcting entry would be necessary?

Multiple Choice

 

Debit Fees Income $2,050; credit Cash $2,050

Debit Accounts Receivable $2,050; credit Cash $2,050

Debit Cash $2,050; credit Accounts Receivable $2,050

Debit Accounts Receivable $2,050; credit Fees Income $2,050

 

 

 

 

Bertrand Inc. purchased some shop equipment for $5,100 in cash. By mistake, the journal entry debited the Office Equipment account rather than the Shop Equipment account. What correcting entry would be necessary?

Multiple Choice

 

Debit Office Equipment $5,100; credit Cash $5,100

Debit Shop Equipment $5,100; credit Office Equipment $5,100

Debit Cash $5,100; credit Shop Equipment $5,100

Debit Office Equipment $5,100; credit Shop Equipment $5,100

 

 

 
 

 

 
 

 

ACC 290 Week 4 Practice Connect Knowledge Check (2019 New)
 

Complete the Week 4 Knowledge Check in Connect.

Note: You have unlimited attempts available to complete this practice assignment. The highest scored attempt will be recorded.

These assignments have earlier due dates, so plan accordingly.

Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date.

 

On a worksheet, a net loss is:

Multiple Choice

 

 

 

 
 

 

 

not recorded.

 

 

 

 
 

 

 

recorded in the Balance Sheet Credit column.

 

 

 

 
 

 

 

recorded in the Income Statement Debit column.

 

 

 

 
 

 

 

recorded in the Balance Sheet Debit column.

 

 

 

On December 31, Treats Catering Inc.’s trial balance shows a $1,000 balance in the Supplies account. However, a physical count of the supplies determined that only $350 of supplies actually remain in the supply cabinet. Select the adjusting entry made on December 31, to record the amount of supplies that had been used during the year.

Multiple Choice

 

 

 

 
 

 

 

 

Supplies Expense………..      $     350

Supplies…………….                  $     350

________________________________________

 

 

 

 
 

 

 

 

Supplies Expense………..      $     650

Supplies…………….                  $     650

________________________________________

 

 

 

 
 

 

 

 

Supplies………..     $     350

Supplies Expense…………….            $     350

________________________________________

 

 

 

 
 

 

 

 

Supplies………..     $     650

Supplies Expense…………….            $     650

________________________________________

 

 

 

 

On January 1, 2019, Johnson Consulting purchased a truck for $18,000. The truck is expected to last 60 months and have no salvage value. Calculate the book value of the truck on December 31, 2020.

Multiple Choice

 

 

 

 
 

 

 

$3,600

 

 

 

 
 

 

 

$10,800

 

 

 

 
 

 

 

$14,400

 

 

 

 
 

 

 

$7,200

 

 

 

On October 25, 2019, the company paid $24,000 rent in advance for the six-month period (November 2019 through April 2020). On December 31, 2019, the adjustment for expired rent would include:

Multiple Choice

 

 

 

 
 

 

 

a $8,000 debit to Rent Expense.

 

 

 

 
 

 

 

a $8,000 credit to Rent Expense.

 

 

 

 
 

 

 

a $4,000 credit to Prepaid Rent.

 

 

 

 
 

 

 

a $24,000 credit to Cash.

 

 

 

 

Which of the following entries records the depreciation on equipment for the fiscal year-end adjustment?

Multiple Choice

 

 

 

 
 

 

 

Debit Depreciation; credit Depreciation Expense

 

 

 

 
 

 

 

Debit Depreciation Expense; credit Accumulated Depreciation

 

 

 

 
 

 

 

Debit Accumulated Depreciation; credit Depreciation Expense

 

 

 

 
 

 

 

Debit Depreciation Expense; credit Equipment

 

 

 

 

On July 1, Sidney Consulting Services paid $18,000 for 12 months of advance rent on its office building. Select the adjusting entry made on December 31, to record the amount of rent that had expired during the year.

Multiple Choice

 

 

 

 
 

 

 

 

Rent Expense………..     $     9,000

Prepaid Rent…………….            $     9,000

________________________________________

 

 

 

 
 

 

 

 

Prepaid Rent………..      $     18,000

Rent Expense…………….                  $     18,000

________________________________________

 

 

 

 
 

 

 

 

Rent Expense………..     $     10,500

Prepaid Rent…………….            $     10,500

________________________________________

 

 

 

 
 

 

 

 

Prepaid Rent………..      $     10,500

Rent Expense…………….                  $     10,500

 

 

 

 

 

The adjusting entry to account for the expiration of prepaid insurance consists of:

Multiple Choice

 

 

 

 
 

 

 

a debit to Insurance Expense and a credit to Accumulated Depreciation.

 

 

 

 
 

 

 

a debit to Insurance Expense and a credit to Prepaid Insurance.

 

 

 

 
 

 

 

a debit to Accumulated Depreciation and a credit to Prepaid Insurance.

 

 

 

 
 

 

 

a debit to Prepaid Insurance and a credit to Accumulated Depreciation.

 

 

 

 

The unadjusted net income on the income statement was $46,850. After journalizing and posting the adjusting entry for the $2,300 of supplies used during the year, the adjusted net income is:

Multiple Choice

 

 

 

 
 

 

 

$45,700.

 

 

 

 
 

 

 

$49,150.

 

 

 

 
 

 

 

$46,850.

 

 

 

 
 

 

 

$44,550.

 

 

 

MacGyver Company bought equipment on January 3, 2019, for $52,000. At the time of purchase, the equipment was estimated to have a useful life of five years and a salvage value of $4,000. Using the straight-line method, the amount of one year’s depreciation is:

Multiple Choice

 

 

 

 
 

 

 

$10,400.

 

 

 

 
 

 

 

$4,000.

 

 

 

 
 

 

 

$1,200.

 

 

 

 
 

 

 

$9,600.

 

 

 

Accumulated Depreciation, Equipment, is shown as:

Multiple Choice

 

 

 

 
 

 

 

an addition to expenses on the Income Statement.

 

 

 

 
 

 

 

a deduction from assets on the Balance Sheet.

 

 

 

 
 

 

 

an addition to assets on the Balance Sheet.

 

 

 

 
 

 

 

a deduction of Capital on the Statement of Owner’s Equity.

 

 

 

 

Accumulated Depreciation, Equipment, is shown as:

Multiple Choice

 

 

 

 
 

 

 

an addition to expenses on the Income Statement.

 

 

 

 
 

 

 

a deduction from assets on the Balance Sheet.

 

 

 

 
 

 

 

an addition to assets on the Balance Sheet.

 

 

 

 
 

 

 

a deduction of Capital on the Statement of Owner’s Equity.

 

 

 

 

Which of the following statements is correct?

Multiple Choice

 

 

 

 
 

 

 

The cost of supplies used is reported on the statement of owner’s equity.

 

 

 

 
 

 

 

The cost of supplies used represents an operating expense of the business.

 

 

 

 
 

 

 

At the time of their acquisition, prepaid expenses are recorded in expense accounts.

 

 

 

 
 

 

 

Accumulated Depreciation–Equipment is presented in the Liabilities section of a balance sheet.

 

 

 

On a worksheet, the adjusted balance of the Supplies account is extended to:

Multiple Choice

 

 

 

 
 

 

 

the Balance Sheet Debit column.

 

 

 

 
 

 

 

the Income Statement Debit column.

 

 

 

 
 

 

 

the Income Statement Credit column.

 

 

 

 
 

 

 

the Balance Sheet Credit column.

 

 

 

Which of the following need not be completed separately if a worksheet is prepared?

Multiple Choice

 

 

 

 
 

 

 

a balance sheet

 

 

 

 
 

 

 

a trial balance

 

 

 

 
 

 

 

a statement of owner’s equity

 

 

 

 
 

 

 

an income statement

 

 

 

 

The adjustments made on the worksheet:

Multiple Choice

 

 

 

 
 

 

 

are recorded in the journal and then posted to the general ledger accounts.

 

 

 

 
 

 

 

need not be entered in the journal or the ledger.

 

 

 

 
 

 

 

are posted to the ledger but are not recorded in the journal.

 

 

 

 
 

 

 

are recorded in the journal but are not posted to the ledger.

 

 

 

 

If the prepaid expenses are not adjusted, assets on the balance sheet:

Multiple Choice

 

 

 

 
 

 

 

will not be affected.

 

 

 

 
 

 

 

may be either overstated or understated.

 

 

 

 
 

 

 

will be overstated.

 

 

 

 
 

 

 

will be understated.

 

 

 

 

The unadjusted net income on the income statement was $23,760. After journalizing and posting the adjusting entries for the $1,620 of supplies used and $3,700 of depreciation on the company’s equipment for the year, the adjusted net income is:

Multiple Choice

 

 

 

 
 

 

 

$25,840.

 

 

 

 
 

 

 

$29,080.

 

 

 

 
 

 

 

$21,680.

 

 

 

 
 

 

 

$18,440.

 

 

 

 

The total assets on the balance sheet was $128,800 before journalizing and posting the adjusting entries for $800 of expired insurance, $2,400 of expired rent and $900 of depreciation.  What are the total assets after journalizing and posting the adjusting?

Multiple Choice

 

 

 

 
 

 

 

$128,800.

 

 

 

 
 

 

 

$126,500.

 

 

 

 
 

 

 

$124,700.

 

 

 

 
 

 

 

$132,900.

 

 

 

 

A total of $2,800 in supplies was purchased during the year. At the end of the year $700 of the supplies were left. The adjusting entry needed at the end of the year is:

Multiple Choice

 

 

 

 
 

 

 

debit Supplies $2,100; credit Supplies Expense $2,100

 

 

 

 
 

 

 

debit Supplies Expense $2,100; credit Supplies $2,100

 

 

 

 
 

 

 

debit Supplies Expense $2,800; credit Supplies $2,800

 

 

 

 
 

 

 

debit Supplies Expense $700; credit Supplies $700

 

 

 

 

Which of the following statements is not correct?

Multiple Choice

 

 

 

 
 

 

 

Salvage value is computed by subtracting the accumulated depreciation from the cost of a long-term asset.

 

 

 

 
 

 

 

Buildings and trucks are examples of long-term assets.

 

 

 

 
 

 

 

The book value of a long-term asset is reduced each year as depreciation is recorded.

 

 

 

 
 

 

 

Generally accepted accounting principles require that the original cost of a long-term asset continue to appear in the asset account until the disposition of the asset.

 

 

 

 

Equipment cost $36,000 and is expected to be useful for 5 years and have no salvage value. Under the straight-line method, monthly depreciation will be:

Multiple Choice

 

 

 

 
 

 

 

$12.

 

 

 

 
 

 

 

$720.

 

 

 

 
 

 

 

$600.

 

 

 

 
 

 

 

$60.

 

 

 

The balance in the Prepaid Rent account before adjustment at the end of the year is $12,000, which represents 12 months rent paid on November 1. The adjusting entry required on December 31 to show the amount of rent that had expired is:

Multiple Choice

 

 

 

 
 

 

 

 

Rent Expense………..     $     1,000

Prepaid Rent…………….            $     1,000

________________________________________

 

 

 

 
 

 

 

 

Rent Expense………..     $     12,000

Cash…………….                $     12,000

________________________________________

 

 

 

 
 

 

 

 

Rent Expense………..     $     2,000

Prepaid Rent…………….            $     2,000

________________________________________

 

 

 

 
 

 

 

 

Prepaid Rent………..      $     12,000

Rent Expense…………….                  $     12,000

________________________________________

 

 

 

 

If long-term assets are not adjusted, expenses on the income statement:

Multiple Choice

 

 

 

 
 

 

 

may be either overstated or understated.

 

 

 

 
 

 

 

will be overstated.

 

 

 

 
 

 

 

will not be affected.

 

 

 

 
 

 

 

will be understated.

 

 

 

 

If a worksheet is prepared at the end of the accounting year,

Multiple Choice

 

 

 

 
 

 

 

the financial statements are prepared using the worksheet data.

 

 

 

 
 

 

 

preparation of the financial statements is not required.

 

 

 

 
 

 

 

the adjusting entries do not need to be journalized.

 

 

 

 
 

 

 

only a balance sheet is required.

 

 

 

 

 

 

B. Consulting purchased a machine for $6,000 on August 1, 2019. The company expects the useful life of the machine to be 5 years and no salvage value is expected. If the company uses the straight-line method to depreciate the machine, what will be the depreciation adjustment for the year ending December 31, 2019?
 

 

 

Multiple Choice

 

 

 

 
 

 

 

Debit Depreciation Expense $500 and Credit Accumulated Depreciation $500.

 

 

 

 
 

 

 

Debit Depreciation Expense $500 and Credit Equipment $500.

 

 

 

 
 

 

 

Debit Depreciation Expense $400 and Credit Accumulated Depreciation $400.

 

 

 

 
 

 

 

Debit Accumulated Depreciation $100 and Credit Depreciation Expense $100.

 

 

 

 

A consecutive, twelve-month accounting period is called a(n):

Multiple Choice

 

 

 

 
 

 

 

accrual year.

 

 

 

 
 

 

 

accounting year.

 

 

 

 
 

 

 

fiscal year.

 

 

 

 
 

 

 

adjusted year.

 

 

 

 

The book value of long-term assets is reported on:

Multiple Choice

 

 

 

 
 

 

 

the statement of owner’s equity.

 

 

 

 
 

 

 

the balance sheet.

 

 

 

 
 

 

 

the worksheet.

 

 

 

 
 

 

 

the income statement.

 

 

 

On a balance sheet, Accumulated Depreciation—Equipment is reported:

Multiple Choice

 

 

 

 
 

 

 

as a contra-asset on the Balance Sheet.

 

 

 

 
 

 

 

as an expense on the Income Statement.

 

 

 

 
 

 

 

as a liability on the Income Statement.

 

 

 

 
 

 

 

as owner’s equity on the Balance Sheet

 

 

 

 

Adjusting Entries are:

Multiple Choice

 

 

 

 
 

 

 

not required.

 

 

 

 
 

 

 

corrections of errors.

 

 

 

 
 

 

 

updating entries for previously unrecorded expenses or revenues.

 

 

 

 
 

 

 

will always affect cash.

 

 

 

 

On a worksheet, the adjusting entry to account for depreciation of equipment consists of:

Multiple Choice

 

 

 

 
 

 

 

a debit to Depreciation Expense and a credit to Equipment.

 

 

 

 
 

 

 

a debit to Accumulated Depreciation and a credit to Equipment.

 

 

 

 
 

 

 

a debit to Depreciation Expense and a credit to Accumulated Depreciation.

 

 

 

 
 

 

 

a debit to Accumulated Depreciation and a credit to Depreciation Expense.

 

 

 

On a worksheet, the adjusted balance of the revenue account Fees Income would be extended to:

Multiple Choice

 

 

 

 
 

 

 

the Balance Sheet Debit column.

 

 

 

 
 

 

 

the Income Statement Credit column.

 

 

 

 
 

 

 

the Income Statement Debit column.

 

 

 

 
 

 

 

the Balance Sheet Credit column.

 

 
 

 

 
 

 

ACC 290 Week 4 Apply Connect Exercise (2019 New)
 

Review the Knowledge Check in preparation for this assignment.

Complete the Week 4 Exercise in Connect.

Note: You have only one attempt available to complete this assignment.

Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date.

 

 

 

 

On June 1, 2019, Cain Company, a new firm, paid $5,100 rent in advance for a six-month period. The $5,100 was debited to thePrepaid Rent
 

 

On June 1, 2019, the firm bought supplies for $7,200. The $7,200 was debited to the Supplies An inventory of supplies at the end of June showed that items costing $2,925 were on hand.
 

 

On June 1, 2019, the firm bought equipment costing $54,000. The equipment has an expected useful life of 10 years and no salvage value. The firm will use the straight-line method of depreciation.
 

 

 

 

 
 

 

 

 

A firm purchased a four-year insurance policy for $15,840 on July 1, 2019. The $15,840 was debited to the Prepaid Insurance
 

 

On December 1, 2019, a firm signed a contract with a local radio station for advertising that will extend over a three-year period. The firm paid $47,880 in advance and debited the amount to Prepaid Advertising.
 

 

 

 

 
 

 

 
 

On January 31, 2019, the general ledger of Palmer Company showed the following account balances.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACCOUNTS
 
Cash
61,200
Accounts Receivable
20,700
Supplies
7,200
Prepaid Insurance
6,400
Equipment
89,700
Accum. Depr.—Equip.
0
Accounts Payable
14,900
Sadie Palmer, Capital
80,150
Fees Income
108,000
Depreciation Exp.—Equip.
0
Insurance Expense
0
Rent Expense
8,800
Salaries Expense
9,050
Supplies Expense
0
 
 

Additional information:

 

 

 

 

Supplies used during January totaled $4,800.
 

 

Expired insurance totaled $1,600.
 

 

Depreciation expense for the month was $1,375.
 

 

 

 

 
 

 

 
 

Assume that a firm reports net income of $87,000 prior to making adjusting entries for the following items: expired rent, $6,700; depreciation expense, $7,900; and supplies used, $3,300.

Assume that the required adjusting entries have not been made. What effect do these errors have on the reported net income?

 

 
 

 

 
 

Desoto Company must make three adjusting entries on December 31, 2019.

 

 

 

Supplies used, $9,200 (supplies totaling $14,400 were purchased on December 1, 2019, and debited to the Suppliesaccount).
 

 

Expired insurance, $6,400; on December 1, 2019, the firm paid $38,400 for six months’ insurance coverage in advance and debitedPrepaid Insurancefor this amount.
 

 

Depreciation expense for equipment, $4,000.
 

 

 

 

 
 

 

 
 

A total of $4,150 in supplies was purchased during the year. At the end of the year $1,080 of the supplies were left. The adjusting entry needed at the end of the year is:

Multiple Choice

debit Supplies Expense $4,150; credit Supplies $4,150

debit Supplies Expense $3,070; credit Supplies $3,070

debit Supplies Expense $1,080; credit Supplies $1,080

debit Supplies $3,070; credit Supplies Expense $3,070

 

 

MacGyver Company bought equipment on January 3, 2019, for $34,700. At the time of purchase, the equipment was estimated to have a useful life of 5 years and a salvage value of $1,220. Using the straight-line method, the amount of one year’s depreciation is

Multiple Choice

 

$1,220

$5,783

$465

$6,696

 

 

 

Equipment costing $16,500 with an estimated salvage value of $1,140 and an estimated life of 4 years was purchased on October 31, 2019. Using the straight-line depreciation method, what is the amount of depreciation expense to be recorded at December 31, 2019?

Multiple Choice

 

$320

$3,840

$640

$1,140

 

 

 

On September 1, 2019, Jay Walker Company purchased a one-year insurance policy for $360. The correct adjusting entry on December 31, 2019, is:

Multiple Choice

 

debit Insurance Expense $120; credit Prepaid Insurance $120

debit Insurance Expense $270; credit Prepaid Insurance $270

debit Prepaid Insurance $30; credit Insurance Expense $30

debit Prepaid Insurance $360; credit Insurance Expense $360

 

 

 

On October 25, 2019, the company paid $36,000 rent in advance for the six-month period (November 2019 through April 2020). On December 31, 2019, the adjustment for expired rent would include:

Multiple Choice

a $12,000 debit to Rent Expense.

a $6,000 credit to Cash.

a $36,000 credit to Rent Expense.

a $6,000 credit to Prepaid Rent.

 

 

 

 
 

 

ACC 290 Week 5 Practice Connect Knowledge Check (2019 New)
 

Complete the Week 5 Knowledge Check in Connect.

Note: You have unlimited attempts available to complete this practice assignment. The highest scored attempt will be recorded.

These assignments have earlier due dates, so plan accordingly.

Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date.

 

One purpose of closing entries is to zero out the balances in the:

Multiple Choice

 

 

 

 
 

 

 

expense and capital accounts.

 

 

 

 
 

 

 

asset and liability accounts.

 

 

 

 
 

 

 

revenue and expense accounts.

 

 

 

 
 

 

 

liability and capital accounts.

 

 

 

Identify the accounts below that are ALL classified as temporary accounts.

Multiple Choice

 

 

 

 
 

 

 

Owner’s Drawing, Owner’s Capital, Income Summary

 

 

 

 
 

 

 

Accounts Receivable, Depreciation Expense, Fees Income

 

 

 

 
 

 

 

Wages Expense, Accumulated Depreciation, Fees Income

 

 

 

 
 

 

 

Owner’s Drawing, Depreciation Expense, Income Summary

 

 

 

The first two closing entries to the Income Summary account indicate a debit of $47,000 and a credit of $41,000. The third closing entry would be:

Multiple Choice

 

 

 

 
 

 

 

debit Income Summary $47,000; credit Capital $47,000

 

 

 

 
 

 

 

debit Income Summary $41,000; credit Expenses $41,000

 

 

 

 
 

 

 

debit Capital $6,000; credit Income Summary $6,000

 

 

 

 
 

 

 

debit Income Summary $6,000; credit Drawing $6,000

 

 

 

Which of the following statements is not correct?

Multiple Choice

 

 

 

 
 

 

 

The balance of the owner’s capital account on the adjusted trial balance will usually be different than that reported on the post-closing trial balance.

 

 

 

 
 

 

 

The audit trail should be used to trace data through the accounting records to find and correct errors.

 

 

 

 
 

 

 

If the post-closing trial balance does not balance, there are errors in the accounting records.

 

 

 

 
 

 

 

The balance of the owner’s capital account, as reflected on the post-closing trial balance, will match the amount reported on the income statement.

 

 

 

After the closing entries are posted to the ledger, each revenue account will have:

Multiple Choice

 

 

 

 
 

 

 

a debit balance.

 

 

 

 
 

 

 

either a debit or a credit balance.

 

 

 

 
 

 

 

a credit balance.

 

 

 

 
 

 

 

a zero balance.

 

 

 

The first two closing entries to the Income Summary account indicate a debit of $53,000 and a credit of $64,000. The third closing entry would be:

Multiple Choice

 

 

 

 
 

 

 

debit Capital $11,000; credit Income Summary $11,000.

 

 

 

 
 

 

 

debit Income Summary $11,000; credit Capital $11,000.

 

 

 

 
 

 

 

debit Income Summary $11,000; credit Drawing $11,000.

 

 

 

 
 

 

 

debit Revenue $64,000; credit Expenses $53,000.

 

 

 

Listed below in random order are the steps in the accounting cycle.

 

(1) prepare the financial statements

(2) post the journal entries to the ledger

(3) record journal entries

(4) prepare a trial balance

 

What is the proper order of these steps?

 

Multiple Choice

 

 

 

 
 

 

 

(2), (3), (4), (1)

 

 

 

 
 

 

 

(3), (2), (4), (1)

 

 

 

 
 

 

 

(4), (3), (2), (1)

 

 

 

 
 

 

 

(3), (2), (1), (4)

 

 

 

Information in the financial statements provides answers to many questions, including:

Multiple Choice

 

 

 

 
 

 

 

Has there been a lot of employee turnover?

 

 

 

 
 

 

 

How much do customers owe the business?

 

 

 

 
 

 

 

Has the business achieved its net income goal for the year?

 

 

 

 
 

 

 

What are the business’ current and long term plans for expansion?

 

 

 

Which of the following accounts is a permanent account?

Multiple Choice

 

 

 

 
 

 

 

Supplies

 

 

 

 
 

 

 

Fees Income

 

 

 

 
 

 

 

Owner’s drawing

 

 

 

 
 

 

 

Supplies Expense

 

 

 

 

If a business has a net loss for a fiscal period, the journal entry to close the Income Summary account is:

Multiple Choice

 

 

 

 
 

 

 

a debit to Capital and a credit to Income Summary.

 

 

 

 
 

 

 

a debit to Income Summary and a credit to Fees Income.

 

 

 

 
 

 

 

a debit to Capital and a credit to Drawing.

 

 

 

 
 

 

 

a debit to Income Summary and a credit to Capital.

 

 

 

Use the following account balances from the adjusted trial balance of Gees Catering:

 

Account  Debit Balance Credit Balance

Cash            10,000

Accounts Payable                          2,000

 

 

 

Gees, Drawing 1,000
 

 

Gees, Capital                   18,000
 

 

 

Fees Revenue                         10,000

Salary Expense           7,000

Rent Expense       6,000

Supplies Expense        6,000

________________________________________

 

What is the amount that Gees Consulting would report as the ending balance in the R. Gees, Capital account at the end of the year?

Multiple Choice

 

 

 

 
 

 

 

$26,000

 

 

 

 
 

 

 

$28,000

 

 

 

 
 

 

 

$ 8,000

 

 

 

 
 

 

 

$18,000

 

 

 

The entry to transfer a net loss to the owner’s capital account would include:

Multiple Choice

 

 

 

 
 

 

 

a debit to the Capital account and a credit to Cash.

 

 

 

 
 

 

 

a debit to Income Summary and a credit to Capital.

 

 

 

 
 

 

 

a debit to the Capital account and a credit to Income Summary.

 

 

 

 
 

 

 

a debit to the Capital account and a credit to the Drawing account.

 

 

 

Use the following account balances from the adjusted trial balance of Gees Catering:

 

Account  Debit Balance Credit Balance

Cash            10,000

Accounts Payable                          2,000

 

 

 

Gees, Drawing 1,000
 

 

Gees, Capital                   18,000
 

 

 

Fees Revenue                         10,000

Salary Expense           7,000

Rent Expense       6,000

Supplies Expense        6,000

________________________________________

Select the correct closing entry that Gees Catering would make to close the owner’s withdrawal account at the end of the accounting period.

Multiple Choice

 

 

 

 
 

 

 

 

 

 

 

Gees, Drawing $ 1,000
 

 

 

Income Summary              $     1,000

________________________________________

 

 

 

 
 

 

 

 

Income Summary   $     1,000

 

 

 

Gees, Drawing       $     1,000
 

 

 

________________________________________

 

 

 

 
 

 

 

 

 

 

 

Gees, Drawing $ 1,000
 

 

Gees, Capital       $     1,000
 

 

 

________________________________________

 

 

 

 
 

 

 

 

 

 

 

Gees, Capital $ 1,000
 

 

Gees, Drawing       $     1,000
 

 

 

________________________________________

 

 

 

 

The first step in the closing process is to close:

Multiple Choice

 

 

 

 
 

 

 

the expense account(s).

 

 

 

 
 

 

 

the capital account.

 

 

 

 
 

 

 

the drawing account.

 

 

 

 
 

 

 

the revenue account(s).

 

 

 

Which of the following statements is correct?

Multiple Choice

 

 

 

 
 

 

 

Closing entries are entered directly on the worksheet.

 

 

 

 
 

 

 

The Balance Sheet section of the worksheet contains the data that is used to make closing entries.

 

 

 

 
 

 

 

Preparation of the post-closing trial balance is the last step in the end-of-period routine.

 

 

 

 
 

 

 

The balance of the owner’s drawing account will appear on the post-closing trial balance.

 

 

 

 

Use the following account balances from the adjusted trial balance of ABC Consulting:

 

Account  Debit Balance Credit Balance

Cash            20,500

Accounts Payable                          2,000

 

 

 

Conway, Drawing 600
 

 

Conway, Capital                   13,000
 

 

 

Fees Revenue                         18,000

Salary Expense           2,600

Rent Expense       3,000

Supplies Expense        1,900

Advertising Expense           800

________________________________________

What is the amount that ABC Consulting would report as the ending balance in the B. Conway, Capital account at the end of the year?

Multiple Choice

 

 

 

 
 

 

 

$22,100.

 

 

 

 
 

 

 

$3,900

 

 

 

 
 

 

 

$31,000.

 

 

 

 
 

 

 

$13,000.

 

 

 

Trial balances are prepared in a certain order. Given the choices below, which one depicts the trial balances in the correct order in which they would be prepared?

Multiple Choice

 

 

 

 
 

 

 

post-closing trial balance, adjusted trial balance, trial balance.

 

 

 

 
 

 

 

trial balance, adjusted trial balance, post-closing trial balance.

 

 

 

 
 

 

 

adjusted trial balance, trial balance, post-closing trial balance.

 

 

 

 
 

 

 

trial balance, post-closing trial balance, adjusted trial balance.

 

 

 

 

The asset, liability, and owner’s capital accounts appear on all of the following except the:

Multiple Choice

 

 

 

 
 

 

 

post-closing trial balance.

 

 

 

 
 

 

 

balance sheet.

 

 

 

 
 

 

 

income statement.

 

 

 

 
 

 

 

worksheet.

 

 

 

Which of the following statements is not correct?

Multiple Choice

 

 

 

 
 

 

 

The owner’s drawing account is closed to the Income Summary account.

 

 

 

 
 

 

 

The Income Summary account is used only at the end of an accounting period to help with the closing procedure.

 

 

 

 
 

 

 

The Income Summary account is a temporary owner’s equity account.

 

 

 

 
 

 

 

Before the Income Summary account is closed, its balance represents the net income or net loss for the accounting period.

 

 

 

 

The revenue account Fees Income is closed by:

Multiple Choice

 

 

 

 
 

 

 

debiting Income Summary and crediting Fees Income.

 

 

 

 
 

 

 

debiting Cash and crediting Fees Income.

 

 

 

 
 

 

 

debiting Fees Income and crediting Income Summary.

 

 

 

 
 

 

 

debiting the owner’s capital account and crediting Fees Income.

 

 

 

 

After the worksheet has been completed, the next step in the accounting cycle is to:

Multiple Choice

 

 

 

 
 

 

 

prepare the post-closing trial balance.

 

 

 

 
 

 

 

post the closing entries.

 

 

 

 
 

 

 

prepare the financial statements.

 

 

 

 
 

 

 

journalize the closing entries.

 

 

 

 

A post-closing trial balance could include all of the following accounts except the:

Multiple Choice

 

 

 

 
 

 

 

owner’s capital account.

 

 

 

 
 

 

 

Accounts Receivable account.

 

 

 

 
 

 

 

Cash account.

 

 

 

 
 

 

 

Fees Income account.

 

 

 

 

All of the following accounts will appear on the post-closing trial balance except:

Multiple Choice

 

 

 

 
 

 

 

Depreciation Expense

 

 

 

 
 

 

 

Capital

 

 

 

 
 

 

 

Land

 

 

 

 
 

 

 

Accounts Payable

 

 

 

 

Which of the following entries records the closing of Penny Pincher, Drawing at the end of the accounting period?

Multiple Choice

 

 

 

 
 

 

 

Debit Penny Pincher, Drawing; credit Penny Pincher, Capital

 

 

 

 
 

 

 

Debit Income Summary; credit Penny Pincher, Drawing

 

 

 

 
 

 

 

Debit Penny Pincher, Capital; credit Penny Pincher, Drawing

 

 

 

 
 

 

 

Debit Penny Pincher, Capital; credit Income Summary

 

 

 

 

All of the following accounts will appear on the post-closing trial balance except:

Multiple Choice

 

 

 

 
 

 

 

Accumulated Depreciation-Equipment.

 

 

 

 
 

 

 

Depreciation Expense-Equipment.

 

 

 

 
 

 

 

Equipment.

 

 

 

 
 

 

 

Accounts Payable.

 

 

 

Which of the following accounts will not normally have a zero balance after the closing entries have been posted?

Multiple Choice

 

 

 

 
 

 

 

Fees Income

 

 

 

 
 

 

 

Capital

 

 

 

 
 

 

 

Rent Expense

 

 

 

 
 

 

 

Income Summary

 

 

 

 

Which of the following accounts has a normal credit balance?

Multiple Choice

 

 

 

 
 

 

 

 

 

 

Stark, Drawing
 

 

 

 

 

 

 
 

 

 

Accounts Payable

 

 

 

 
 

 

 

Supplies Expense

 

 

 

 
 

 

 

Accounts Receivable

 

 

 

Use the following account balances from the adjusted trial balance of ABC Consulting:

 

Account  Debit Balance Credit Balance

Cash            20,500

Accounts Payable                          2,000

 

 

 

Conway, Drawing 600
 

 

Conway, Capital                   13,000
 

 

 

Fees Revenue                         18,000

Salary Expense           2,600

Rent Expense       3,000

Supplies Expense        1,900

Advertising Expense           800

________________________________________

 

Select the correct closing entry that ABC Consulting would make to close the income summary account at the end of the accounting period.

Multiple Choice

 

 

 

 
 

 

 

debit Income Summary $9,700 and credit B. Conway, Capital for $9,700.

 

 

 

 
 

 

 

debit B. Conway, Capital $18,000 and credit Income Summary for $18,000.

 

 

 

 
 

 

 

debit B. Conway, Capital $9,700 and credit Income Summary for $9,700.

 

 

 

 
 

 

 

debit B. Conway, Capital $600 credit B. Conway, Drawing for $600.

 

 

 

 

Use the following account balances from the adjusted trial balance of ABC Consulting:

 

Account  Debit Balance Credit Balance

Cash            20,500

Accounts Payable                          2,000

 

 

 

Conway, Drawing 600
 

 

Conway, Capital                   13,000
 

 

 

Fees Revenue                         18,000

Salary Expense           2,600

Rent Expense       3,000

Supplies Expense        1,900

Advertising Expense           800

________________________________________

 

Select the correct closing entry that ABC Consulting would make to close their expense account(s) at the end of the accounting period.

Multiple Choice

 

 

 

 
 

 

 

debit B. Conway, Capital $8,300 and credit Salary Expense $2,600; credit Rent Expense $3,000; credit Supplies Expense $1,900; Advertising Expense $800.

 

 

 

 
 

 

 

debit Income Summary $8,300 and credit B. Conway, Capital for $8,300.

 

 

 

 
 

 

 

debit Salary Expense $2,600; debit Rent Expense $3,000; debit Supplies Expense $1,900; debit Advertising Expense $800 and credit Income Summary $8,300.

 

 

 

 
 

 

 

debit Income Summary $8,300 and credit Salary Expense $2,600; credit Rent Expense $3,000; credit Supplies Expense $1,900; Advertising Expense $800.

 

 

 

The entry to close the Income Summary account may include:

Multiple Choice

 

 

 

 
 

 

 

a debit to Income Summary and a credit to the owner’s capital account.

 

 

 

 
 

 

 

a debit to Income Summary and a credit to the owner’s drawing account.

 

 

 

 
 

 

 

a debit to Cash and a credit to Income Summary.

 

 

 

 
 

 

 

a debit to Income Summary and a credit to Cash.

 

 
 

 

 
 

 

 
 

 

ACC 290 Week 5 Apply Connect Exercise (2019 New)
 

Review the Knowledge Check in preparation for this assignment.

Complete the Week 5 Exercise in Connect.

Note: You have only one attempt available to complete this assignment.

Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date

 

 
 

1.The first two closing entries to the Income Summary account indicate a debit of $56,250 and a credit of $67,900. The third closing entry would be:

 

 

2.On December 31, 2019, the ledger of Lopez Company contained the following account balances:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 
 
 
 
 
Cash
$
32,100
Maria Lopez, Drawing
$
12,600
Accounts Receivable
 
2,450
Fees Income
 
49,250
Supplies
 
1,650
Depreciation Expense
 
2,300
Equipment
 
25,100
Salaries Expense
 
16,100
Accumulated Depreciation
 
2,050
Supplies Expense
 
2,550
Accounts Payable
 
2,550
Telephone Expense
 
2,150
Maria Lopez, Capital
 
47,350
Utilities Expense
 
4,200
 
 

 

 

3..The Income Summary and Linda Carter, Capital accounts for Carter Production Company at the end of its accounting period follow.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Summary
Account No. 399
 
Balance
Date
Description
Debit
Credit
Debit
Credit
2019
 
 
 
 
 
Dec. 31
Closing
 
65,400
 
65,400
31
Closing
35,100
 
 
30,300
31
Closing
30,300
 
 
0
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Linda Carter, Capital
Account No. 301
 
Balance
Date
Description
Debit
Credit
Debit
Credit
2019
 
 
 
 
 
Dec.  1
 
 
112,000
 
112,000
31
Closing
 
30,300
 
142,300
31
Closing
10,200
 
 
132,100
 
 

Enter the following amounts.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 
 
 
  

 
 
 

4.The ledger accounts of AXX Internet Company appear as follows on March 31, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACCOUNT NO.
ACCOUNT
BALANCE
101
Cash
$
77,000
111
Accounts Receivable
 
58,520
121
Supplies
 
10,300
131
Prepaid Insurance
 
24,700
141
Equipment
 
115,000
142
Accumulated Depreciation—Equipment
 
41,020
202
Accounts Payable
 
12,700
301
Aretha Hinkle, Capital
 
127,000
302
Aretha Hinkle, Drawing
 
12,700
401
Fees Income
 
366,060
510
Depreciation Expense—Equipment
 
20,860
511
Insurance Expense
 
11,100
514
Rent Expense
 
32,700
517
Salaries Expense
 
163,000
518
Supplies Expense
 
5,300
519
Telephone Expense
 
6,500
523
Utilities Expense
 
9,100
 
 

 

All accounts have normal balances.

Required:

Prepare the closing entries.

Post the transactions in to the appropriate ledger accounts. Hint: Be sure to enter beginning balances.

 

 

 

 

 

 

5.On December 31, the Income Summary account of Madison Company has a debit balance of $32,000 after revenue of $34,000 and expenses of $66,000 were closed to the account. Madison Wells, Drawing has a debit balance of $3,500 and Madison Wells, Capitalhas a credit balance of $53,000.

Required:

Record the journal entries necessary to complete closing the accounts.

What is the new balance of Madison Wells, Capital?

 

 

 

6.

 

The adjusted ledger accounts of RD Consulting on December 31, 2019, appear as follows

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Account Name
Balance
Cash
 
7,500
 
Accounts Receivable
 
2,150
 
Supplies
 
2,000
 
Prepaid Insurance
 
750
 
Equipment
 
19,500
 
Accumulated Depreciation–Equipment
 
4,100
 
Accounts Payable
 
3,350
 
Roger Dye, Capital
 
16,100
 
Roger Dye, Drawing
 
4,000
 
Fees Income
 
18,800
 
Supplies Expense
 
800
 
Insurance Expense
 
650
 
Depreciation Expense–Equipment
 
600
 
Salaries Expense
 
3,350
 
Utilities Expense
 
1,050
 
 
 

Prepare the Balance Sheet and Income Statement columns of the worksheet. Prepare the closing entries for RD Consulting on December 31, 2019. All accounts have normal balances and adjusting entries have been made.

 

 

7.

The partial worksheet for the Jamison Company showed the following data on October 31, 2019

.

 

 

 

8.

 

 

 

9.

 

Dorsey Company’s partial worksheet for the month ended March 31, 2019, is shown below. Open the owner’s capital account (account number 301) in the general ledger and record the March 1, 2019, balance of $34,500 shown on the worksheet.

 

 

 

10.

 

 

Danos Company’s partial worksheet for the month ended December 31, 2019, is shown below. Open the owner’s capital account (account number 301) in the general ledger and record the December 1, 2019, balance of $71,000 shown on the worksheet.

 

 

 

 

 
 

Use the following account balances from the adjusted trial balance of Gees Catering:

 

Account  Debit Balance Credit Balance

Cash            10,000

Accounts Payable                          2,000

 

 

 

Gees, Drawing 1,000
 

 

Gees, Capital                   18,000
 

 

 

Fees Revenue                         10,000

Salary Expense           7,000

Rent Expense       6,000

Supplies Expense        6,000

________________________________________

 

Select the correct closing entry that Gees Catering would make to close their revenue account(s) at the end of the accounting period.

Multiple Choice

 

 

 

 
 

 

 

 

Income Summary   $     10,000

Fees Revenue             $     10,000

________________________________________

 

 

 

 
 

 

 

 

 

 

 

Gees, Capital $ 10,000
 

 

 

Fees Revenue             $     10,000

________________________________________

 

 

 

 
 

 

 

 

Fees Revenue  $     10,000

Income Summary              $     10,000

________________________________________

 

 

 

 
 

 

 

 

Fees Revenue  $     10,000

 

 

 

Gees, Capital       $     10,000
 

 

 

________________________________________

 

 

 

After the closing entries are posted to the ledger, each expense account will have:

Multiple Choice

 

 

 

 
 

 

 

a debit balance.

 

 

 

 
 

 

 

a credit balance.

 

 

 

 
 

 

 

a negative balance.

 

 

 

 
 

 

 

a zero balance.

 

 

 

 

Which of the following accounts is not closed?

Multiple Choice

 

 

 

 
 

 

 

Cash

 

 

 

 
 

 

 

Fees Income

 

 

 

 
 

 

 

Rent Expense

 

 

 

 
 

 

 

Joan Wilson, Drawing

 

 

 

 

After the closing entries are posted to the ledger, each revenue account will have:

Multiple Choice

 

 

 

 
 

 

 

a zero balance.

 

 

 

 
 

 

 

a debit balance.

 

 

 

 
 

 

 

a credit balance.

 

 

 

 
 

 

 

either a debit or a credit balance.

 

 

 

 

A post-closing trial balance could include all of the following accounts except the:

Multiple Choice

 

 

 

 
 

 

 

owner’s capital account.

 

 

 

 
 

 

 

Cash account.

 

 

 

 
 

 

 

Accounts Receivable account.

 

 

 

 
 

 

 

Fees Income account.

 

 

 

 

Which of the following accounts has a normal debit balance?

Multiple Choice

 

 

 

 
 

 

 

Accounts Receivable

 

 

 

 
 

 

 

Accounts Payable

 

 

 

 
 

 

 

Fees Income

 

 

 

 
 

 

 

 

 

 

Stark, Capital
 

 

 

 

 

 

 

Which of the following accounts has a normal credit balance?

Multiple Choice

 

 

 

 
 

 

 

Accounts Payable

 

 

 

 
 

 

 

Accounts Receivable

 

 

 

 
 

 

 

Supplies Expense

 

 

 

 
 

 

 

 

 

 

Stark, Drawing
 

 

 

 

 

 

Which of the following statements is correct?

Multiple Choice

 

 

 

 
 

 

 

The Balance Sheet section of the worksheet contains the data that is used to make closing entries.

 

 

 

 
 

 

 

The balance of the owner’s drawing account will appear on the post-closing trial balance.

 

 

 

 
 

 

 

Closing entries are entered directly on the worksheet.

 

 

 

 
 

 

 

Preparation of the post-closing trial balance is the last step in the end-of-period routine.

 

 

 

 

Information in the financial statements provides answers to many questions, including:

Multiple Choice

 

 

 

 
 

 

 

How much do customers owe the business?

 

 

 

 
 

 

 

What are the business’ current and long term plans for expansion?

 

 

 

 
 

 

 

Has the business achieved its net income goal for the year?

 

 

 

 
 

 

 

Has there been a lot of employee turnover?

 

 

 

 

After the transactions have been posted, the next step in the accounting cycle is to:

Multiple Choice

 

 

 

 
 

 

 

prepare the financial statements.

 

 

 

 
 

 

 

prepare the post-closing trial balance.

 

 

 

 
 

 

 

prepare the worksheet.

 

 

 

 
 

 

 

journalize and post the adjusting entries.

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