Exam 3: The Double-Entry Accounting System

A trial balance can only be prepared at the end of the fiscal year,as part of the adjusting and closing processes.

What transaction does the following general journal entry represent?

Indicate how each event affects the elements of financial statements.Use the following letters to record your answer in the box shown below each element.You do not need to enter amounts. -An adjusting entry recorded as a debit to Rent Expense and a credit to Prepaid Rent.

The following transactions apply to Matt's Computer Service for the year 2016. 1)Issued stock to investors for $45,000 cash. 2)Purchased land for $36,000 cash. 3)Performed services on account for $51,000. 4)Collected $33,600 on accounts receivable. 5)Paid operating expenses of $19,500. Required: a)Draw T-accounts and post the above transactions to the appropriate T-accounts. b)Prepare a balance sheet for Matt's Computer Service for December 31,2016.

Peterson Corporation recorded an adjusting entry using T-accounts as follows: Which of the following reflects how this adjustment affects the company's financial statements?

The balance in Retained Earnings is decreased by debiting the account.

What is one effect of the following general journal entry?

Indicate whether each of the following statements is true or false.If a company made the following journal entry, this entry would cause: _____ a)total claims to stay the same. _____ b)total assets to remain the same. _____ c)liabilities to decrease. _____ d)cash flows from operating activities to increase. _____ e)owners' equity to stay the same.

Use the following information to answer questions At the end of 2016 the following information is available for Grumpy,Happy,and Doc Companies. -Which company is the most profitable from the owners' perspective?

Record the adjusting journal entries that should be made for Anaheim Company at December 31,2016. 1)Recognized $10,500 of salaries expense for the last several days of December. 2)Earlier in the period $2,400 of supplies were purchased.As of December 31,2016,the company had $660 of the supplies still on hand. 3)On October 1,a customer had made an advance payment of $96,000 for services to be rendered equally over a 6-month period beginning October 1.

Fitzpatrick Company recorded $500 of accrued salaries expense.Which of the following shows the proper entry using T-accounts?

Giddeon Company's accounts and their balances as of December 31,2016 are listed in alphabetical order below,after having posted the year-end adjusting entries. Required: a)Prepare the adjusted trial balance for Giddeon Company as of December 31,2016. b)Prepare Giddeon's 2016 income statement and balance sheet.

Generally accepted accounting principles require that a business's fiscal year must end on December 31.

A debit entry

Cornelius Company purchased supplies on account.What account is credited?

The following information was taken from the books of Jefferson Corporation.A partial list of accounts and balances as of December 31,2016 after adjustments have been posted: Required: a)Prepare the necessary closing entries in general journal form. b)Assuming the balance of Retained Earnings prior to closing was $6,400,what is its balance immediately after closing?

The adjusting entry to record expense related to the use of a delivery van would involve which of the following?

The information in the following T-accounts indicates that

An adjusting entry can never be an asset exchange transaction.

Indicate how each event affects the elements of financial statements.Use the following letters to record your answer in the box shown below each element.You do not need to enter amounts. -An adjusting entry recorded as a debit to Supplies Expense and a credit to Supplies.