Question 1

Match the terms below with the correct definitions.
-Allocation of the cost of a plant asset over its estimated life
A)Fiscal year
B)Trade-in value
C)Accrued wages
D)Work sheet
E)Contra account
F)Accounting cycle
G)Mixed accounts
H)Adjusting
I)Depreciation

Accepted Answer

Depreciation is the allocation of the cost of a plant asset over its estimated life.

Question 2

Match the terms below with the correct definitions.
-Account that is contrary to or a deduction from another account
A)Fiscal year
B)Trade-in value
C)Accrued wages
D)Work sheet
E)Contra account
F)Accounting cycle
G)Mixed accounts
H)Adjusting
I)Depreciation

Accepted Answer

A contra account is an account used in an accounting system that is opposite to another account. It is used to reduce the value of the original account directly to show the net balance. For example, "Accumulated Depreciation" is a contra asset account used to reduce the value of asset accounts.

Question 3

The trial balance of B. C. Towe, Quick Cleaners, for the year ended December 31 is presented below.
Data for the adjustments are as follows:
  
Data for the adjustments are as follows:
a.Depreciation of equipment, $3,010.
b.Depreciation of van, $2,200.
c.Accrued wages, $660.
d.Insurance expired, $450.
e.Supplies remaining, $170.
Instructions:
1.Complete a work sheet for B. C. Towe, Quick Cleaners.
2.Journalize the adjusting entries.
3.Prepare an income statement, a statement of owners equity, and a balance sheet. Assume that no additional investments were made during the year.

Accepted Answer

The answer of The trial balance of B. C. Towe,...

Question 4

Match the terms below with the correct definitions.
-Working paper that is used to record adjustments and gather information to prepare the financial statements
A)Fiscal year
B)Trade-in value
C)Accrued wages
D)Work sheet
E)Contra account
F)Accounting cycle
G)Mixed accounts
H)Adjusting
I)Depreciation

Accepted Answer

A work sheet is a working paper used to record adjustments and gather information to prepare the financial statements.

Answer: H 
 Adjusting refers to the process of making entries in the books to reflect the true financial position of a company as of the end of the accounting period.

Answer: I 
 Depreciation refers to the process of allocating the cost of a tangible asset over its useful life.

The other terms are defined as follows:

A) Fiscal year - a 12-month period that a company or organization uses for accounting purposes

B) Trade-in value - the value that a dealer will pay for a used car or other asset when it is traded in as part of a new purchase

C) Accrued wages - wages that have been earned by employees but not yet paid by the employer

E) Contra account - an account that is used to offset another account on the balance sheet

F) Accounting cycle - the process of recording, classifying, and summarizing financial transactions to prepare financial statements

G) Mixed accounts - accounts that contain both debit and credit entries, which can make them difficult to analyze and reconcile.

Question 5

Match the terms below with the correct definitions.
-Amount of unpaid wages owed to employees for wages earned between the last pay period end and the end of the fiscal period
A)Fiscal year
B)Trade-in value
C)Accrued wages
D)Work sheet
E)Contra account
F)Accounting cycle
G)Mixed accounts
H)Adjusting
I)Depreciation

Accepted Answer

Accrued wages are the amount of unpaid wages owed to employees for wages earned between the last pay period end and the end of the fiscal period.

Question 6

Match the terms below with the correct definitions.
-Amount that one would expect to be the value of an asset when its estimated life is over
A)Fiscal year
B)Trade-in value
C)Accrued wages
D)Work sheet
E)Contra account
F)Accounting cycle
G)Mixed accounts
H)Adjusting
I)Depreciation

Accepted Answer

The trade-in value is the amount expected to be the value of an asset when its estimated life is over, often used when trading in an old asset for a new one.

Question 7

If revenue and expenses were equal for an accounting period, the result would be neither a profit nor a loss.

Accepted Answer

This is because profit is the difference between revenue and expenses. If they are equal, there is no difference and therefore no profit or loss.

Question 8

A company produced a net income of $28,000 but failed to adjust for $1,600 in depreciation of equipment and $1,400 in accrued wages. Explain how these errors have affected net income. What will be the corrected net income?

Accepted Answer

The answer of A company produced a net income of...

Question 9

Newkirk Company began operations on January 1. The trial balance as of December 31 is presented below.
Data for the adjustments are as follows:
  
a.The office equipment has a life of five years with an estimated trade-in value of $600 at the end of five years.
b.Weekly wages amount to $180 for a five-day week. As of December 31, three days' wages have accrued.
c.Prepaid Insurance represents a twelve-month policy beginning March 1 of the year.
d.Supplies used during December, $215.
Instructions:
Record the adjusting entries for Newkirk Company in general journal form.

Accepted Answer

The answer of Newkirk Company began operations on January 1....

Question 10

A net loss occurs when there are more expenses than revenue.

Accepted Answer

A net loss occurs when the expenses exceed the revenue, resulting in a negative balance or financial loss.

Question 11

Classify each of the following accounts as to whether they would appear on a balance sheet (BS) or income statement (IS).
 ___Accounts Payable
___Accounts Receivable
___Accumulated Depreciation, Equipment
___Advertising Expense
___Cash
___Depreciation Expense, Equipment
___Equipment
___Income from Tours
___Insurance Expense
___Owner, Capital
___Frepaid Insurance
___Rent Expense
___Supplies
___Utilities Expense
___Wages Expense
___Wages Payable

Accepted Answer

The answer of Classify each of the following accounts as...

Question 12

Why are adjusting entries necessary to portray a more accurate picture of a company's financial position?

Accepted Answer

The answer of Why are adjusting entries necessary to portray...

Question 13

The owner's personal withdrawals for the year cause a decrease in net income.

Accepted Answer

Owner's personal withdrawals, often referred to as drawings, do not affect the net income of a business. Net income is calculated based on the company's revenues and expenses, and drawings are recorded separately as a reduction in the owner's equity, not as an expense.

Question 14

Explain the matching principle and provide two examples of how it is applied in accounting records.

Accepted Answer

The answer of Explain the matching principle and provide two...

Question 15

Match the terms below with the correct definitions.
-Twelve consecutive months used by a business as its annual accounting period
A)Fiscal year
B)Trade-in value
C)Accrued wages
D)Work sheet
E)Contra account
F)Accounting cycle
G)Mixed accounts
H)Adjusting
I)Depreciation

Accepted Answer

A fiscal year is a consecutive 12-month period that a business chooses to use as its annual accounting period.

Answer: B 
 Trade-in value refers to the value of an old asset that is being traded in for a new one.

Answer: C 
 Accrued wages are wages that have been earned by employees but have not yet been paid out.

Answer: D 
 A worksheet is a document used by accountants to organize and summarize data during the accounting cycle.

Answer: E 
 A contra account is an account that is used to offset another account.

Answer: F 
 The accounting cycle is a series of steps that accountants follow to properly record business transactions and prepare financial statements.

Answer: G 
 Mixed accounts are accounts that have both a debit and credit balance.

Answer: H 
 Adjusting entries are made at the end of an accounting period to ensure that financial statements accurately reflect the company's financial position.

Answer: I 
 Depreciation is the gradual loss of an asset's value over time due to wear and tear, obsolescence, or other factors.

Question 16

Explain the differences between net income and net loss.

Accepted Answer

The answer of Explain the differences between net income and...

Question 17

Match the terms below with the correct definitions.
-Steps in the accounting process, completed during the fiscal year
A)Fiscal year
B)Trade-in value
C)Accrued wages
D)Work sheet
E)Contra account
F)Accounting cycle
G)Mixed accounts
H)Adjusting
I)Depreciation

Accepted Answer

The accounting cycle refers to the steps taken during the fiscal year to complete the accounting process, including recording transactions, preparing financial statements, and adjusting entries.

Answer: A 
 The fiscal year is the 12-month period for which a business or organization prepares its financial statements.

Answer: H 
 Adjusting entries are made at the end of the accounting cycle to ensure that accounts accurately reflect financial transactions and events that occurred during the period.

Answer: I 
 Depreciation refers to the gradual decrease in value of a long-term asset over time, due to wear and tear or obsolescence.

Answer: B 
 Trade-in value is the amount of credit a business may receive when trading in an asset, such as a vehicle, for a new one.

Answer: C 
 Accrued wages refer to unpaid wages that have been earned by employees but have not yet been paid out by the business.

Answer: D 
 A work sheet is a document used during the accounting process to summarize data and prepare financial statements.

Answer: E 
 A contra account is a type of account used in the double-entry accounting system to offset the balance of another account.

Answer: G 
 Mixed accounts are accounts that represent a combination of different types of transactions or events, such as interest earned on investments and service fees charged to customers.

Question 18

The ending balance in the supplies asset accounts is the amount the company has used during the reporting period.

Accepted Answer

The ending balance in the supplies asset accounts is the amount of supplies that is still available or unused at the end of the reporting period. The company's usage of supplies would be recorded as an expense, not as a change in the asset account balance.

Question 19

Explain what book value is and provide an example of how it is calculated.

Accepted Answer

The answer of Explain what book value is and provide...

Question 20

Using the following information, prepare a statement of owner's equity for the month of October for Mathew's Clinic.
​
 $\begin{array}{lr}
\text { H. Mathew, Capital, on October } 1 & \$ 300,000 \
\text { Additional investment by H. Mathew on October } 18 & 20,000 \
\text { Net loss for the month (from income statement) } & 2,000 \
\text { Total withdrawals for the month } & 5,000
\end{array}$

Accepted Answer

The answer of Using the following information, prepare a statement...

Quiz 4: Adjusting Entries and the Work Sheet

Match the terms below with the correct definitions. -Allocation of the cost of a plant asset over its estimated life

Match the terms below with the correct definitions. -Account that is contrary to or a deduction from another account

Match the terms below with the correct definitions. -Working paper that is used to record adjustments and gather information to prepare the financial statements

Match the terms below with the correct definitions. -Amount of unpaid wages owed to employees for wages earned between the last pay period end and the end of the fiscal period

Match the terms below with the correct definitions. -Amount that one would expect to be the value of an asset when its estimated life is over