1) Determine the major difference between Unadjusted Trial Balance and Adjusted Trial Balance?
A. The Adjusted Trial Balance will show the net Income (loss) as an additional account.
B. Both will need to be in balance In order to continue with the end-of-period processing.
C. The Adjusted Trial Balance includes the postings of the adjustments for the period in the balance of the accounts.
D. The Unadjusted Trial Balance will be used to record the adjustments for the period.
2) Balance Sheet should be prepared __________________
A. before income statement and the statement of owner's equity
B. before Income statement and after the statement of owner's equity
C. after Income statement and the statement of owner's equity
D. after income statement and before the statement of owner's equity
3) In balance sheet columns of end-of-period spreadsheet (work sheet) for Free Lance Consulting Co for the current year, Debit column total is 257,690 and Credit column total is $278,100 before the amount for net income or net loss has been included. In creating income statement for end-of-period spreadsheet with is the amount of net income or net loss?
Compute Net Income or Net Loss?
After accounts have been adjusted at Oct. 31 the end of the fiscal year, following balances were taken from the ledger of Velocity Delivery Services Co.:
Lisa Jordan, capital $318,500
Lisa Jordan, drawing 36,000
Fees Earned 475,150
Wages Earned 390,000
Rent Expense 85,000
Supplies Expense 38,350
Misc. Expense 12,675
4) Determine closing entry to close Fees Earned account?
A. Debit Fees Earned $475,150; Credit Income Statement $475,150
B. Debit Income Statement $475,150; Credit Fees Earned $475,150
C. Debit Fees Earned $475,150; Credit Income Summary $475,150
D. Debit Income Summary $475,150; Credit Fees Earned $478,150
5) What is the closing entry to close Income Summary account?
A. Debit Income Summary 50,875; Credit Lisa Jordan, Capital 50,875
B. Debit Lisa Jordan, Capital 50,875; Credit Income Summary 50,875
C. Debit Income Summary 36,000; Credit Lisa Jordan, Capital 36,000
D. Debit Lisa Jordan, Capital 36,000; Credit Income Summary 36,000