FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 3: Adjusting Accounts for Financial Statements

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 101

True/False

Review LaterAdd Note

Review Later

A company performs 20 days of work on a 30-day contract before the end of the year.The total contract is valued at $6,000,with payment received in advance.The $6,000 cash receipt was initially recorded as Unearned Revenue.The required adjusting entry includes a $4,000 debit to Unearned Revenue.

Correct Answer

verified

Show Answer

Question 102

Essay

Review LaterAdd Note

Review Later

Identify the primary differences between accrual accounting and cash basis accounting.

Correct Answer

verified

Accrual accounting records rev...

View Answer

Show Answer

Question 103

Multiple Choice

Review LaterAdd Note

A balance sheet that places the liabilities and equity to the right of the assets is a(n) :

Reversing entries:

Revenue and expense balances are transferred from the adjusted trial balance to the income statement.

Match the following terms with the appropriate definition. -A useful measure of a company's operating results determined by dividing net income by net sales.

Based on the unadjusted trial balance for Glow Styling and the adjusting information given below,prepare the adjusting journal entries for Glow Styling.After completing the adjusting entries,prepare the trial balance for Glow Styling. Glow Styling unadjusted trial balance for the current year follows: Additional information: a.An insurance policy examination showed $1,240 of expired insurance. b.An inventory count showed $210 of unused shop supplies still available. c.Depreciation expense on shop equipment,$350. d.Depreciation expense on the building,$2,220. e.A beautician is behind on space rental payments,and this $200 of accrued revenues was unrecorded at the time the trial balance was prepared. f.$800 of the Unearned Rent account balance was earned by year-end. g.The one employee,a receptionist,works a five-day workweek at $50 per day.The employee was paid last week but has worked four days this week for which she has not been paid. h.Three months' property taxes,totaling $450,have accrued.This additional amount of property taxes expense has not been recorded. i.One month's interest on the note payable,$600,has accrued but is unrecorded. Use the above information to prepare the adjusted trial balance for Glow Styling.

The accrual basis of accounting requires adjustments to recognize revenues in the periods they are earned and to match expenses with revenues.

The periodic expense created by allocating the cost of plant and equipment to the periods in which they are used,representing the expense of using the assets,is called:

The accrual basis of accounting recognizes revenues when cash is received from customers.

Juno Company had $500 of office supplies available at the beginning of the current year.During the year Juno Company purchased $2,750 worth of office supplies,which were debited to the office supplies account.On December 31 of this year,$375 worth of office supplies remained. a.Calculate the amount of Juno Company's office supplies expense for the current year.(Show your calculations.) b.Prepare the journal entry to adjust the supplies account.

The time period assumption assumes that an organization's activities may be divided into specific reporting time periods including all of the following except:

Adjusting entries made at the end of an accounting period accomplish all of the following except:

Closing the temporary accounts at the end of each accounting period does all of the following except:

On November 1,Jovel Company loaned another company $100,000 at a 6.0% interest rate.The note receivable plus interest will not be collected until March 1 of the following year.The company's annual accounting period ends on December 31,and adjustments are only made at year-end.The adjusting entry needed on December 31 is:

________ are required at the end of the accounting period because certain internal transactions and events remain unrecorded.

________ basis accounting means that revenues are recognized when cash is received and that expenses are recorded when cash is paid.________ basis accounting means that the financial effects of revenues and expenses are recorded when earned or incurred.

Temporary accounts include all of the following except:

Match the following terms with the appropriate definition. -Any 12 consecutive months or 52-week period that a company adopts for its annual reporting period.

Prepaid expenses,depreciation,accrued expenses,unearned revenues,and accrued revenues are all examples of: