Question 1

Accountants use the worksheet to organize and complete adjustments for all but one of the following events:

Accepted Answer

A)  Depreciation on equipment. 
B)  Revenue earned and recorded in the current period. 
C)  Supplies on hand. 
D)  Rent paid in advance. 
A)  Depreciation on equipment. 
B)  Revenue earned and recorded in the current period. 
C)  Supplies on hand. 
D)  Rent paid in advance.

Question 2

Bailey's received its electric bill for December on December 31 but did not pay nor record it in the general journal. This resulted in

Accepted Answer

A)  understated assets. 
B)  overstated net income. 
C)  overstated liabilities. 
D)  understated capital. 
A)  understated assets. 
B)  overstated net income. 
C)  overstated liabilities. 
D)  understated capital.

Question 3

The worksheet is the first financial statement prepared.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following accounts would most likely be depreciated?

Accepted Answer

A)  Equipment 
B)  Office Supplies 
C)  Cash 
D)  Accounts Payable 
A)  Equipment 
B)  Office Supplies 
C)  Cash 
D)  Accounts Payable

Question 5

The spreading or allocating of the cost of a long-term asset is called depreciation.

Accepted Answer

A) True 
 B)False

Question 6

The use of straight-line depreciation is permitted by the Canada Revenue Agency for all assets.

Accepted Answer

A) True 
 B)False

Question 7

When Income Statement debits exceed the credits on the worksheet,

Accepted Answer

A)  a net loss has occurred. 
B)  a net income has occurred. 
C)  an error has been made. 
D)  Not enough information has been provided. 
A)  a net loss has occurred. 
B)  a net income has occurred. 
C)  an error has been made. 
D)  Not enough information has been provided.

Question 8

On the worksheet in the final two columns - the debits will always equal the credits before net income is added.

Accepted Answer

A) True 
 B)False

Question 9

When an asset expires or is used up, it becomes an expense.

Accepted Answer

A) True 
 B)False

Question 10

Discuss the benefits of the worksheet. Explain how the financial reports are prepared from the worksheet.

Accepted Answer

An accountant uses a worksheet like a sc

Question 11

Given the trial balance and adjustment columns of the worksheet, complete the adjusted trial balance column for the company.
Trial Adjusted
Balance Adjustments Trial Balance
                    Trial             Adjusted                      Balance       Adjustments       Trial Balance               Accounts       DR       CR       DR       CR       DR       CR               Cash       750                                                  Accts. Rec.       400                                                  Supplies       250                     175                             Prepaid Ins.       400                     100                             Equipment       7,000                                                  Equipment              900                                           Capital              6,000                                           Fees Earned              2,000                                           Wages Exp.       100              300                                    Depreciation Expense                     250                                    Accumulated Depreciation                            250                             Supplies Expense                     175                                    Insurance Expense                     100                                    Wages Payable                            300                             Total       8,900       8,900       825       825

Accepted Answer

Trial Adjusted
Balan

Question 12

On November 30, the balance in the Supplies account was $900. 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?

Accepted Answer

$400 [$900

Question 13

Liam's Skate Sharpening estimated depreciation for office equipment at $200. The adjusting entry would include

Accepted Answer

A)  a debit to Accumulated Depreciation for $200. 
B)  a credit to Depreciation Expense for $200. 
C)  a credit to Accumulated Depreciation for $200. 
D)  a credit to Office Equipment for $200. 
A)  a debit to Accumulated Depreciation for $200. 
B)  a credit to Depreciation Expense for $200. 
C)  a credit to Accumulated Depreciation for $200. 
D)  a credit to Office Equipment for $200.

Question 14

Sophie's Bridal Shop bought a computer worth $2,150 with an expected life of 3 years and a residual value of $500. What is the adjusting journal entry after the first year?

Accepted Answer

A)  Computer 550 Depreciation Expense 550 
B)  Computer 550 Accumulated Depreciation, Computer 550 
C)  Depreciation Expense 550 Accumulated Depreciation, Computer 550 
D)  Depreciation Expense 550 Computer 550 
A)  Computer 550 Depreciation Expense 550 
B)  Computer 550 Accumulated Depreciation, Computer 550 
C)  Depreciation Expense 550 Accumulated Depreciation, Computer 550 
D)  Depreciation Expense 550 Computer 550

Question 15

Huron Road Tours showed store supplies on hand to be $450. If at the end of the period supplies used were $100, the adjusting entry would include

Accepted Answer

A)  a debit to Supplies Expense for $100. 
B)  a debit to Supplies Expense for $350. 
C)  a credit to Supplies Expense for $100. 
D)  a credit to Supplies Expense for $350. 
A)  a debit to Supplies Expense for $100. 
B)  a debit to Supplies Expense for $350. 
C)  a credit to Supplies Expense for $100. 
D)  a credit to Supplies Expense for $350.

Question 16

Crystal's Hair Studio showed office supplies available of $1,400. A count of the supplies left on hand as of June 30 was $1,100. The adjusting journal entry is

Accepted Answer

A)  Office Supplies 300 Office Supplies Expense 300 
B)  Office Supplies Expense 400 Office Supplies 400 
C)  Office Supplies 400 Office Supplies Expense 400 
D)  Office Supplies Expense 300 Office Supplies 300 
A)  Office Supplies 300 Office Supplies Expense 300 
B)  Office Supplies Expense 400 Office Supplies 400 
C)  Office Supplies 400 Office Supplies Expense 400 
D)  Office Supplies Expense 300 Office Supplies 300

Question 17

Equipment with a cost of $150,000 has an accumulated depreciation of $50,000, and an estimated remaining life of 8 years. What is the historical cost of the equipment?

Accepted Answer

A)  $150,000 
B)  $50,000 
C)  $200,000 
D)  $100,000 
A)  $150,000 
B)  $50,000 
C)  $200,000 
D)  $100,000

Question 18

Assuming that purchases of supplies were debited to the Supplies asset account when made, an adjustment for supplies would indicate

Accepted Answer

A)  the amount bought. 
B)  the amount used up. 
C)  the amount on hand. 
D)  the amount on the trial balance. 
A)  the amount bought. 
B)  the amount used up. 
C)  the amount on hand. 
D)  the amount on the trial balance.

Question 19

Which of the financial statements is prepared first from the worksheet?

Accepted Answer

A)  Balance sheet 
B)  Income statement 
C)  Statement of owner's equity 
D)  None of these answers are correct. 
A)  Balance sheet 
B)  Income statement 
C)  Statement of owner's equity 
D)  None of these answers are correct.

Question 20

If an adjustment to Supplies is not made, the balance in the Supplies account will be too low.

Accepted Answer

A) True 
 B)False

Accountants use the worksheet to organize and complete adjustments for all but one of the following events:

Bailey's received its electric bill for December on December 31 but did not pay nor record it in the general journal. This resulted in

The worksheet is the first financial statement prepared.

Which of the following accounts would most likely be depreciated?

The spreading or allocating of the cost of a long-term asset is called depreciation.

The use of straight-line depreciation is permitted by the Canada Revenue Agency for all assets.

When Income Statement debits exceed the credits on the worksheet,

On the worksheet in the final two columns - the debits will always equal the credits before net income is added.

When an asset expires or is used up, it becomes an expense.

Discuss the benefits of the worksheet. Explain how the financial reports are prepared from the worksheet.

On November 30, the balance in the Supplies account was $900. 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?

Liam's Skate Sharpening estimated depreciation for office equipment at $200. The adjusting entry would include

Sophie's Bridal Shop bought a computer worth $2,150 with an expected life of 3 years and a residual value of $500. What is the adjusting journal entry after the first year?

Huron Road Tours showed store supplies on hand to be $450. If at the end of the period supplies used were $100, the adjusting entry would include

Crystal's Hair Studio showed office supplies available of $1,400. A count of the supplies left on hand as of June 30 was $1,100. The adjusting journal entry is

Equipment with a cost of $150,000 has an accumulated depreciation of $50,000, and an estimated remaining life of 8 years. What is the historical cost of the equipment?

Assuming that purchases of supplies were debited to the Supplies asset account when made, an adjustment for supplies would indicate

Which of the financial statements is prepared first from the worksheet?

If an adjustment to Supplies is not made, the balance in the Supplies account will be too low.

Accounting Concepts and Procedures: an Introduction

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle: Journalizing, Posting, and the Trial Balance

The Accounting Cycle Completed: Closing and Post-Closing Trial Balance

Special Journals and Subsidiary Ledgers: the Basics: Sales and Cash

Special Journals and Subsidiary Ledgers: the Basics: Purchases and Cash Payments Journals

Banking Procedures and Control of Cash

Payroll Procedures: the Employees Perspective

The Employers Tax Responsibilities: Principles and Procedures

Special Journals With Taxes

Preparing a Worksheet for a Merchandising Company

Completion of the Accounting Cycle for a Merchandising Company

Filters

	Trial				Adjusted
	Balance		Adjustments		Trial Balance
Accounts	DR	CR	DR	CR	DR	CR
Cash	750
Accts. Rec.	400
Supplies	250			175
Prepaid Ins.	400			100
Equipment	7,000
Equipment		900
Capital		6,000
Fees Earned		2,000
Wages Exp.	100		300
Depreciation Expense			250
Accumulated Depreciation				250
Supplies Expense			175
Insurance Expense			100
Wages Payable				300
Total	8,900	8,900	825	825

Exam 4: The Accounting Cycle Continued: Preparing Worksheets and Financial Statements

Accountants use the worksheet to organize and complete adjustments for all but one of the following events:

Bailey's received its electric bill for December on December 31 but did not pay nor record it in the general journal. This resulted in

The worksheet is the first financial statement prepared.

Which of the following accounts would most likely be depreciated?

The spreading or allocating of the cost of a long-term asset is called depreciation.

The use of straight-line depreciation is permitted by the Canada Revenue Agency for all assets.

When Income Statement debits exceed the credits on the worksheet,

On the worksheet in the final two columns - the debits will always equal the credits before net income is added.

When an asset expires or is used up, it becomes an expense.

Discuss the benefits of the worksheet. Explain how the financial reports are prepared from the worksheet.

On November 30, the balance in the Supplies account was $900. 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?

Liam's Skate Sharpening estimated depreciation for office equipment at $200. The adjusting entry would include

Sophie's Bridal Shop bought a computer worth $2,150 with an expected life of 3 years and a residual value of $500. What is the adjusting journal entry after the first year?

Huron Road Tours showed store supplies on hand to be $450. If at the end of the period supplies used were $100, the adjusting entry would include

Crystal's Hair Studio showed office supplies available of $1,400. A count of the supplies left on hand as of June 30 was $1,100. The adjusting journal entry is

Equipment with a cost of $150,000 has an accumulated depreciation of $50,000, and an estimated remaining life of 8 years. What is the historical cost of the equipment?

Assuming that purchases of supplies were debited to the Supplies asset account when made, an adjustment for supplies would indicate

Which of the financial statements is prepared first from the worksheet?

If an adjustment to Supplies is not made, the balance in the Supplies account will be too low.

Accounting Concepts and Procedures: an Introduction

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle: Journalizing, Posting, and the Trial Balance

The Accounting Cycle Completed: Closing and Post-Closing Trial Balance

Special Journals and Subsidiary Ledgers: the Basics: Sales and Cash

Special Journals and Subsidiary Ledgers: the Basics: Purchases and Cash Payments Journals

Banking Procedures and Control of Cash

Payroll Procedures: the Employees Perspective

The Employers Tax Responsibilities: Principles and Procedures

Special Journals With Taxes

Preparing a Worksheet for a Merchandising Company

Completion of the Accounting Cycle for a Merchandising Company

Filters