Question 1

Equipment was purchased for $20,000,residual value is $2,000 and it is expected that the useful life is 10 years.What is the book value of the equipment after the first year assuming straight-line depreciation?
$ ________

Accepted Answer

The answer of Equipment was purchased for $20,000,residual value is...

Question 2

Revenue is recorded when earned,and expenses are recorded only when paid.

Accepted Answer

This statement is incorrect. According to the accrual basis of accounting, revenue is recorded when earned, regardless of whether payment has been received or not. Expenses are recorded when they are incurred, regardless of whether payment has been made or not.

Question 3

Provide the adjusting entries to account for the differences between the trial balance amounts and the adjusted trial balance amounts for the accounts shown.Only a partial trial balance is provided.Use T accounts to show the adjustments.
 $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $$\underline{\text {Trial Balance}}$ $\quad $ $\quad $$ \underline{\text {Adjusted Trial Balance}}$
$\begin{array}{c}
\begin{array}{lll}
\
\text {Supplies}\
\text {Prepaid Rent}\
\text {Equipment}\
\text {Accum. Depr. - Equip}\
\text {Service Fees}\
\text {Depreciation Expense}\
\text {Telephone Expense}\
\text {Salaries Expense}\
\text {Rent Expense}\
\text {Supplies Expense}
\end{array}
\begin{array}{lll}
\underline{\text {Debit}}\
\
500 \
1,100 \
10,000\
\
\
\
\
150 \
500\
\
\
\end{array}
\begin{array}{lll}
\underline{\text {Credit}}\
\
 \
 \
\
3,000\
1,200\
\
\
 \
\
\
\
\end{array}
\begin{array}{lll}
\underline{\text {Debit}}\
\
500 \
300 \
10,000\
\
\
400\
150\
600\
800\
250\
\

\end{array}
\begin{array}{r}
\underline{\text {Credit}}\
\
 \
 \
\
3,000\
1,200\
\
\
 \
\
\
\
\end{array}
\end{array}$

Accepted Answer

The answer of Provide the adjusting entries to account for...

Question 4

Given the income statement columns and the balance sheet columns of the worksheet,prepare an income statement for the month of October 31,20XX,for the company.

Accepted Answer

The answer of Given the income statement columns and the...

Question 5

The company pays $2,000 per 5 day work week.The total expenses as of Friday,April 27 were $8,000.What would be the month's total expenses as of April 30 (assuming no pay is earned over the weekend)?
$ ________

Accepted Answer

The answer of The company pays $2,000 per 5 day...

Question 6

Given the income statement columns and the balance sheet columns of the worksheet,prepare a balance sheet dated December 31,200x,for Baur Company.

Accepted Answer

The answer of Given the income statement columns and the...

Question 7

On November 30,the balance in the Supplies account was $1000.During December additional supplies were purchased of $200.On December 31,there was $700 worth of Supplies on hand.What would be the adjustment for the month of December for Supplies?
$ ________

Accepted Answer

The answer of On November 30,the balance in the Supplies...

Question 8

On January 1 the Prepaid Insurance account had a balance of $6,000 that represented 6 months' worth of advance payment.It is now the end of March and there have been no adjustments to the account balance.Determine the amount of expense to record at the end of March.
$ ________

Accepted Answer

The answer of On January 1 the Prepaid Insurance account...

Question 9

The order of the steps to prepare the worksheet are:

Accepted Answer

The correct sequence for preparing a worksheet begins with preparing the trial balance, followed by completing adjustments, preparing the adjusted trial balance, and finally extending the respective totals to the Income Statement and Balance Sheet columns.

Question 10

What are the differences between depreciation expense and accumulated depreciation?

Accepted Answer

The answer of What are the differences between depreciation expense...

Question 11

To compute net income or net loss,the debit and credit columns of the income statement section of the worksheet are totaled,and the difference is placed on the smaller side.

Accepted Answer

This is the correct method of calculating net income or net loss on a worksheet. The difference between the total debit and credit columns of the income statement section is placed on the smaller side, whether it is debit or credit, to determine the net income or net loss.

Question 12

The worksheet is the first financial statement prepared.

Accepted Answer

The first financial statement prepared is usually the balance sheet, which shows the company's assets, liabilities, and equity at a specific point in time. The worksheet is a tool used in the accounting process to organize and summarize adjusting entries and prepare financial statements.

Question 13

Equipment was purchased for $20,000,residual value is $2,000 and it is expected that the useful life is 10 years.What is the depreciation adjustment amount after the first year assuming straight-line depreciation?
$ ________

Accepted Answer

The answer of Equipment was purchased for $20,000,residual value is...

Question 14

On the worksheet,the Income Statement debit column totaled $1000 and the credit column totaled $1,100.What is the amount of Net Income?
$ ________

Accepted Answer

The answer of On the worksheet,the Income Statement debit column...

Question 15

What is the purpose of adjusting entries? Discuss the effect of not preparing adjusting entries on various accounts.

Accepted Answer

The answer of What is the purpose of adjusting entries?...

Question 16

The adjusted trial balance columns:

Accepted Answer

The adjusted trial balance columns help to ensure the ledger is still in balance, help to identify any errors that may have been made during adjustment, and show updated account balances to aid in preparation of the financial statements. Therefore, all of the options A, B, and C are correct.

Question 17

Discuss the benefits of the worksheet.Explain how the financial reports are prepared from the worksheet.

Accepted Answer

The answer of Discuss the benefits of the worksheet.Explain how...

Question 18

Equipment was purchased for $20,000,residual value is $2,000 and it is expected that the useful life is 10 years.What is the amount in the Accumulated Depreciation account after 3 years assuming straight-line depreciation?
$ ________

Accepted Answer

The answer of Equipment was purchased for $20,000,residual value is...

Question 19

The debits must equal credits on the adjusted trial balance columns of the worksheet.

Accepted Answer

This is the fundamental rule of double-entry accounting. All debits must equal credits in order to ensure accurate financial statements. The adjusted trial balance is a key step in the accounting cycle, where all accounts are reviewed and adjusted before preparing the financial statements.

Question 20

On the worksheet,the Balance Sheet debit column totaled $1,500 and the credit column totaled $1,400.What is the amount of Net Loss?
$ ________

Accepted Answer

The answer of On the worksheet,the Balance Sheet debit column...

Quiz 4: The Accounting Cycle Continued

Equipment was purchased for $20,000,residual value is $2,000 and it is expected that the useful life is 10 years.What is the book value of the equipment after the first year assuming straight-line depreciation? $ ________

Revenue is recorded when earned,and expenses are recorded only when paid.

Given the income statement columns and the balance sheet columns of the worksheet,prepare an income statement for the month of October 31,20XX,for the company.

The company pays $2,000 per 5 day work week.The total expenses as of Friday,April 27 were $8,000.What would be the month's total expenses as of April 30 (assuming no pay is earned over the weekend)? $ ________

Given the income statement columns and the balance sheet columns of the worksheet,prepare a balance sheet dated December 31,200x,for Baur Company.

On November 30,the balance in the Supplies account was $1000.During December additional supplies were purchased of $200.On December 31,there was $700 worth of Supplies on hand.What would be the adjustment for the month of December for Supplies? $ ________

On January 1 the Prepaid Insurance account had a balance of $6,000 that represented 6 months' worth of advance payment.It is now the end of March and there have been no adjustments to the account balance.Determine the amount of expense to record at the end of March. $ ________

The order of the steps to prepare the worksheet are:

What are the differences between depreciation expense and accumulated depreciation?

To compute net income or net loss,the debit and credit columns of the income statement section of the worksheet are totaled,and the difference is placed on the smaller side.

The worksheet is the first financial statement prepared.

Equipment was purchased for $20,000,residual value is $2,000 and it is expected that the useful life is 10 years.What is the depreciation adjustment amount after the first year assuming straight-line depreciation? $ ________

On the worksheet,the Income Statement debit column totaled $1000 and the credit column totaled $1,100.What is the amount of Net Income? $ ________

What is the purpose of adjusting entries? Discuss the effect of not preparing adjusting entries on various accounts.

The adjusted trial balance columns:

Discuss the benefits of the worksheet.Explain how the financial reports are prepared from the worksheet.

Equipment was purchased for $20,000,residual value is $2,000 and it is expected that the useful life is 10 years.What is the amount in the Accumulated Depreciation account after 3 years assuming straight-line depreciation? $ ________

The debits must equal credits on the adjusted trial balance columns of the worksheet.

On the worksheet,the Balance Sheet debit column totaled $1,500 and the credit column totaled $1,400.What is the amount of Net Loss? $ ________