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

It's the end of the accounting period and no electric bill has been received (but the expense has been incurred); you should record an entry that

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. \begin{array}{l}\text {                                                                                           Adjusted }\\\begin{array} { l c c c c c } & { \text { Trial Balance } } && { \text { Trial Balance } } \\& \text { Debit } & \text { Credit } & \text { Debit } & \text { Credit } \\\hline \text { Supplies } & 325 & & 175 & \\\text { Prepaid Insurance } & 800 & & 500 & \\\text { Equipment } & 8,000 & & 8,000 & \\\text { Accum. Dep. } & & 700 & & 1,200 \\\text { Service Fees } & & 1,200 & & 1,200 \\\text { Depreciation Exp. } & & & 500 & \\\text { Telephone Exp. } & 100 & & 100 & \\\text { Salaries Exp. } & 375 & & 375 & \\\text { Insurance Expense } & & & 300 &\end{array}\end{array}

The worksheet is a tool used in preparing the financial statements for a business.

Sarah's Spices' accrued wages are $1,700. Which of the following is the required adjusting entry?

Adjusting journal entries are prepared from

The income statement is the only statement affected when an adjustment is made.

On the worksheet, the difference between the debits and credits in the income statement columns would be the net income or net loss for the period.

Prepaid Rent is considered to be a(n)

If the adjustment for Supplies used during the period was not made,

The entry to record the expiration of part of the prepaid rent will

The ending figure for capital is

Mavis Company took inventory and recorded the consumption of supplies. How will this affect the balance sheet?

List the steps of the Accounting Cycle in their order of completion that we have learned about up to this point in the course.

The balance in the Accumulated Depreciation account remains about the same each period, while Depreciation Expense increases annually.

Prepaid Advertising appeared as $2,400 on the trial balance and as $2,200 on the adjusted trial balance. The proper adjusting journal entry to reflect the change must have been

As accumulated depreciation is recorded, the book value

After the adjustment for depreciation has been made, the original cost of the equipment

Depreciation expense decreases net income.

After posting adjusting entries, the temporary accounts will be set back to zero.

The inside columns on the financial statements are used to