FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 3: Adjusting Accounts and Preparing Financial Statements

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 121

Multiple Choice

Review LaterAdd Note

Review Later

A company records the fees for legal services paid in advance by its clients in an account called Unearned Legal Fees.If the company fails to make the end-of-period adjusting entry to record the portion of these fees that has been earned,one effect will be:

A) An overstatement of equity
B) An understatement of equity
C) An understatement of assets
D) An understatement of liabilities
E) An overstatement of assets

F) D) and E)
G) A) and B)

Correct Answer

verified

Show Answer

Question 122

Essay

Review LaterAdd Note

Review Later

During the current year ended December 31,clients paid fees in advance for accounting services amounting to $25,000.These fees were recorded in an account called Unearned Accounting Fees.If $3,500 of these fees are still unearned on December 31 of this year present the December 31 adjusting entry to bring the accounts up to date.

Correct Answer

verified

None...

View Answer

Show Answer

Question 123

Multiple Choice

Review LaterAdd Note

An account linked with another account that has an opposite normal balance and that is subtracted from the balance of the related account is a(n) :

Each letter below contains three of the steps found in the accounting cycle.Which presents the given steps in the proper sequence,first to last?

Describe the two alternate methods used to account for prepaid expenses.

Accumulated Depreciation,Accounts Receivable and Service Fees Earned would be sorted to which respective columns in completing a work sheet?

Which of the following is true of accrued revenues:

Expenses incurred but unpaid that are recorded during the adjusting process with a debit to an expense and a credit to a liability are:

Prior to recording adjusting entries at the end of an accounting period,some accounts may not show proper financial statement amounts even though all transactions were correctly recorded.

The items that follow appeared in the Income Statement columns of the work sheet prepared for Armstrong Delivery Service at current year-end.In addition,Retained earnings had a credit balance of $117,000 and Dividends had a debit balance of $30,000 at year end.Prepare closing journal entries for this company.

The Unadjusted Trial Balance columns of a company's work sheet show the balance in the Office Supplies account as $750.The Adjustments columns show that $425 of these supplies were used during the period.The amount shown as Office Supplies in the Balance Sheet columns of the work sheet is:

The adjusted trial balance contains information pertaining to:

A company shows a $600 balance in Prepaid Insurance in the Unadjusted Trial Balance columns of the work sheet.The Adjustments columns show expired insurance of $200.This adjusting entry results in:

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

A trial balance prepared before any adjustments have been recorded is:

Following are selected accounts and their balances for a company after the adjustments as of May 31,the end of its fiscal year.(All accounts have normal balances.) $\begin{array}{|l|r|}\hline \text { Retained earnings } & \$ 30,000 \\\hline \text { Dividends } & 6,000 \\\hline \text { Fees earned } & 20,000 \\\hline \text { Salaries expense } & 7,000 \\\hline \text { Insurance expense } & 350\\\hline \text { Utilities expense } & 75 \\\hline \text { Supplies expense } & 500 \\\hline \text { Supplies } & 400 \\\hline \text { Salaries payable } & 300 \\\hline \text { Depreciation expense } & 425\\\hline\end{array}$ Prepare all the necessary closing entries for this company.

The following are the steps in the accounting cycle.List them in the order in which they are completed: Prepare adjusted trial balance Post transactions Prepare an unadjusted trial balance Journalize transactions Prepare the financial statements Close the temporary accounts Adjust the ledger accounts Prepare a post-closing trial balance Analyze transactions

What is the usual order in which financial statements are prepared from the adjusted trial balance? Why are they prepared in that order?

Describe a worksheet and explain why it is useful.

Adjusting entries: