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Exam 3: Adjusting Accounts and Preparing Financial Statements

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Question 51

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The difference between the cost of an asset and the accumulated depreciation for that asset is called

A) Depreciation Expense
B) Unearned Depreciation
C) Prepaid Depreciation
D) Depreciation Value
E) Book Value

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Question 52

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Financial statements are typically prepared in the following order:

A) Balance sheet, statement of retained earnings, income statement.
B) Statement of retained earnings, balance sheet, income statement.
C) Income statement, balance sheet, statement of retained earnings.
D) Income statement, statement of retained earnings, balance sheet.
E) Balance sheet, income statement, statement of retained earnings.

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Question 53

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Prepare an income statement from the adjusted trial balance of Hanson Storage.

Shown below are selected data taken from the unadjusted and adjusted trial balances for the Simonson Company for the current year ended December 31.Determine the items A through H below.

Which of the following identifies the proper order of the accounting cycle?

A 10-column spreadsheet used to draft a company's unadjusted trial balance,adjusting entries,adjusted trial balance,and financial statements and which is an optional tool in the accounting process is a(n) :

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:

The asset section of a classified balance sheet usually includes:

Manning,Co.collected six-months' rent in advance from a tenant on November 1 of the current year.When cash was collected,the following entry was made: $\begin{array} { | l | l | l | l | } \hline \text { Nov. 01 } & \text { Cash } & 15,000 & \\\hline & \text { Rent Revenue Earned } & & 15,000 \\\hline\end{array}$ Prepare the required adjusting entry at December 31 of the current year.

In preparing statements from the adjusted trial balance,the balance sheet must be prepared first.

Identify the differences between accrual accounting and cash basis accounting.

Which of the following statements is true?

If a company failed to make the end-of-period adjustment to remove the amount earned from the Unearned Management Fees account,there would be:

Accumulated depreciation,accounts receivable,and service fees earned would be sorted to which respective columns in completing a work sheet?

The accrual basis of accounting is an accounting system in which revenues are reported as earned when cash is received.

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.

A(n)_______________________ is a listing of all of the accounts in the ledger with their account balances before adjustments are made.

__________________ expenses are those costs that are incurred in a period but are both unpaid and unrecorded.

Profit margin equals ___________________ divided by net sales.

A partially completed worksheet is shown below.The unadjusted trial balance columns are complete.Complete the adjustments,adjusted trial balance,income statement,and balance sheet columns.