Question 1

Table 4-1 $$\begin{array}{l}
\text { Post Closing Trial Ba lance }\
\begin{array} { l r } 
\text { Red Brown, Capital } & \$ 154,900 \
\text { Cash } & 35,200 \
\text { Accounts receivable } & 10,900 \
\text { Accounts payable } & 3,500 \
\text { Unearned service revenue } & 6,850 \
\text { Supplies } & 1,200 \
\text { Equipment } & 110,600 \
\text { Land } & 15,400 \
\text { Accumulated amortization } & ? ? ?
\end{array}
\end{array}$$
-Referring to Table 4-1, calculate the total amount in the credit column of the post-closing trial balance.

Accepted Answer

The credit column includes Red Brown, Capital ($154,900), Accounts Payable ($3,500), and Unearned Service Revenue ($6,850). Adding these gives $154,900 + $3,500 + $6,850 = $165,250. However, the accumulated amortization is missing, which should balance the debits and credits. Assuming it balances the debits, the total credits would be $173,300.

Question 2

Accumulated amortization appears on the:

Accepted Answer

Accumulated amortization is a contra asset account that reduces the value of the asset it is associated with and appears on the balance sheet. It is credited when adjustments are made, so it appears in the adjusted trial balance credit column and the balance sheet credit column.

Question 3

Given the following worksheet with the trial balance already entered, and the adjustment information, complete the worksheet.  Additional information:
a)Supplies used, $4.
b)Amortization on equipment, $6.
c)Unearned service revenue earned during period, $12.
d)Accrued salaries, $3.
e)Accrued service revenue, $4.

Accepted Answer

The answer of Given the following worksheet with the trial...

Question 4

Given the following worksheet with the trial balance already entered, and the adjustment information, complete the worksheet.  Additional information:
a)Accrued Salaries, $10.
b)Supplies used, $2.
c)Balance of unearned service revenue at end of period, $12.
d)Amortization expense, $3.
e)Accrued service revenue, $5.

Accepted Answer

The answer of Given the following worksheet with the trial...

Question 5

Accumulated amortization is found on the:

Accepted Answer

Accumulated amortization is a contra asset account, which means it appears on the credit side of the balance sheet to reduce the value of the asset it is associated with. It would appear on the credit side in the trial balance, adjustments, and adjusted trial balance. Since it reduces the value of an asset, it is correctly placed on the credit side of the balance sheet in the worksheet.

Question 6

The worksheet is a:

Accepted Answer

The worksheet is a tool used in accounting to help summarize and adjust account balances before preparing financial statements. It is not a formal financial statement, nor is it part of the general ledger or limited to balance sheet accounts only.

Question 7

Net loss is entered onto which columns of a worksheet?

Accepted Answer

A net loss is recorded on the income statement credit column to balance the expenses and revenues and on the balance sheet debit column to adjust the owner's equity or retained earnings.

Question 8

Complete the following December 31, 2019 worksheet for Alcazar Services, using the following adjustments:
1. At year end $2,000 of work done for a client was unrecorded.
2. A count of supplies showed that there were $20 remaining.
3. Unrecorded amortization on the equipment amounted to $240.
4. Accrued salaries amounted to $180.

Accepted Answer

The answer of Complete the following December 31, 2019 worksheet...

Question 9

After all the account balances have been extended to all columns of the worksheet, the totals of the debit and credit columns for the income statement columns are $35,350 and $38,750, respectively. It can be concluded the company has a:

Accepted Answer

The debit and credit columns for the income statement columns are $35,350 and $38,750, respectively. This means that the company has a net loss of $3,400.

Question 10

Given the following totals of the financial statements columns of the worksheet, determine the net income or loss for the period:

Accepted Answer

The answer of Given the following totals of the financial...

Question 11

The net income or loss for the period is placed on the worksheet to balance which sets of columns?

Accepted Answer

The net income or loss for the period is used to balance the income statement and the balance sheet columns on the worksheet. This ensures that the total debits equal the total credits in these columns, reflecting the company's financial position accurately.

Question 12

Using the data in Table 4-1, the balance in accumulated amortization must be:

Accepted Answer

The balance in accumulated amortization is calculated based on the amortization expenses recorded over time. The correct balance is $8,050 as per the data provided in Table 4-1.

Question 13

An error has been made on the worksheet if:

Accepted Answer

The adjusted trial balance debit and credit columns must be equal to ensure that all adjustments have been correctly recorded and the accounts are balanced.

Question 14

"Unearned fees" appears on the:

Accepted Answer

Unearned fees represent a liability because they are amounts received for services not yet performed. Therefore, they appear in the credit column of both the balance sheet and the adjusted trial balance on a worksheet.

Question 15

After all of the account balances have been extended to the income statement columns of the worksheet, the totals of the debit and credit columns are $172,300 and $176,900, respectively. It can be concluded the company has a:

Accepted Answer

The answer of After all of the account balances have...

Question 16

Given the following totals for the financial statement columns on the worksheet, determine the net income or loss for the period:

Accepted Answer

The answer of Given the following totals for the financial...

Question 17

Net income is entered onto which column(s)of a worksheet?

Accepted Answer

Net income is reflected in the income statement credit column to show the earnings and in the balance sheet credit column to indicate the increase in equity.

Question 18

If the prepaid rent account had an unadjusted normal balance of $13,400, and an adjustment was made crediting the account for $1,800, then the account would appear on the worksheet as a(n):

Accepted Answer

The adjustment reduces the prepaid rent account by $1,800, resulting in a new balance of $11,600 ($13,400 - $1,800). Prepaid rent is an asset account, so it would appear as a debit balance in the balance sheet columns.

Question 19

Unearned service revenue has a balance that is $2,800 less in the worksheet's balance sheet credit column than in the worksheet's trial balance credit column. From this data, it can be determined that:

Accepted Answer

The decrease in the credit balance of unearned service revenue indicates that $2,800 of it was earned, so service revenue was credited for $2,800 in the adjustments columns.

Question 20

The worksheet includes debit and credit columns for:

Accepted Answer

The worksheet typically includes debit and credit columns for the trial balance, income statement, adjustments, balance sheet, and adjusted trial balance. These components are essential for preparing financial statements and ensuring that accounts are properly adjusted and balanced.

Quiz 4: Completing the Accounting Cycle