Q1. These 16 accounts are from the Adjusted Trial Balance columns of a company's 10-column work sheet. Select the letter of the appropriate financial statement column (A, B, C, or D) to which a normal account balance is extended.
A. Debit column for the Income Statement columns.
B. Credit column for the Income Statement columns.
C. Debit column for the Balance Sheet and Statement of Owner's Equity columns.
D. Credit column for the Balance Sheet and Statement of Owner's Equity columns
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1.
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Interest Revenue
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2.
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Machinery
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3.
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Owner, Withdrawals
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4.
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Depreciation Expense
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5.
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Accounts Payable
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6.
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Service Fees Revenue
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7.
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Owner, Capital
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8.
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Interest Expense
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9.
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Accounts Receivable
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10.
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Accumulated Depreciation
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11.
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Office Supplies
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12.
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Insurance Expense
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13.
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Interest Receivable
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14.
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Cash
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15.
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Rent Expense
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16.
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Wages Payable
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Q2. List the following steps in preparing a work sheet in their proper order by selecting numbers 1-5 from the drop down provided.
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a.
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Total the statement columns, compute net income (loss), and complete work sheet
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b.
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Extend adjusted balances to appropriate financial statement columns.
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c.
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Prepare an unadjusted trial balance on the work sheet.
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d.
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Prepare an adjusted trial balance on the work sheet.
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e.
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Enter adjustments data on the work sheet.
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Q3. In preparing a work sheet, indicate the financial statement Debit column to which a normal balance in the following accounts should be extended. Use IS for the Income Statement Debit column and BS for the Balance Sheet and Statement of Owner's Equity Debit column.
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a.
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Equipment
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b.
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Owner, Withdrawals
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c.
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Prepaid Rent
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d.
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Depreciation Expense- Equipment
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e.
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Accounts Receivable
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f.
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Insurance Expense
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Q4. Hawk Company records prepaid assets and unearned revenues in balance sheet accounts. The following information was used to prepare adjusting entries for the company as of August 31, the end of the company's fiscal year.
a. The company has earned $6,000 in service fees that were not yet recorded at period-end.
b. The expired portion of prepaid insurance is $3,700.
c. The company has earned $2,900 of its Unearned Service Fees account balance.
d. Depreciation expense for office equipment is $3,300.
e. Employees have earned but have not been paid salaries of $3,400.
Q5. Prepare a balance sheet with the given information.
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Account Title
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Debit
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Credit
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Cash
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$8,000
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Accounts receivable
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17,500
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Office supplies
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3,000
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Trucks
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172,000
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Accumulated depreciation-Trucks
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$36,000
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Land
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85,000
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Accounts payable
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12,000
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Interest payable
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4,000
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Long-term notes payable
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53,000
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K. Wilson, Capital
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175,000
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K. Wilson, Withdrawals
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20,000
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Trucking fees earned
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130,000
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Depreciation expense-Trucks
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23,500
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Salaries expense
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61,000
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Office supplies expense
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8,000
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Repairs expense-Trucks
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12,000
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Totals
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$410,000
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$410,000
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