88) 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?

$ ________

 

89) 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.

$ ________

 

90) 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?

$ ________

91) 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)?

$ ________

 

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

$ ________

 

93) 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?

$ ________

 

4.2   Learning Objective 4-2

 

1) The order of the steps to prepare the worksheet are:

A) prepare the trial balance, complete adjustments, prepare the adjusted trial balance, extend the respective totals to the Income Statement and Balance Sheet columns.

B) complete the adjustments, prepare the adjusted trial balance, prepare the trial balance, extend the respective totals to the Income Statement and Balance Sheet columns.

C) extend the totals to the Income Statement and Balance Sheet columns, prepare the trial balance, complete the adjustments, prepare the adjusted trial balance.

D) prepare the adjusted trial balance, complete the adjustments, prepare the trial balance, extend the respective totals to the Income Statement and Balance Sheet columns.

2) The adjusted trial balance columns:

A) help to ensure the ledger is still in balance.

B) help to identify any errors that may have been made during adjustment.

C) show updated account balances to aid in preparation of the financial statements.

D) All of the above are correct.

 

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

 

4) 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.

 

Trial Balance              Adjusted Trial Balance

                         Debit       Credit       Debit       Credit

 

Supplies500250

Prepaid Rent1,100300

Equipment10,00010,000

Accum. Depr. – Equip3,0003,400

Service Fees1,2001,200

Depreciation Expense400

Telephone Expense150150

Salaries Expense500600

Rent Expense800

Supplies Expense250

 

 

 

 

 



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *