Exam 3: Accrual Accounting Income

Doorglam paid $35,000 for office furniture.The furniture is depreciated using the straight-line method and has an estimated service life of 7 years and no residual value.After three years of use,the accumulated depreciation of the furniture will be:

Shelby,Inc.'s fiscal year ended June 30,2019 and the company is preparing annual financial statements.List the financial statements in the order in which they are prepared.For each statement,include a proper heading.Do not include the statement of cash flows.

On a multistep income statement,"Other income (expenses),net":

The financial statements can be prepared from the adjusted trial balance.

Dolhune Company has a balance of $20,000 in Retained Earnings as of January 1,2019.For the year ended December 31,2019,Dolhune had a net loss of $16,400.$3,000 was declared and paid in dividends for the year.Prepare the Statement of Retained Earnings for the year ended December 31,2019.Include a proper heading.

The following accounts are up-to-date and need no adjustment at the end of the period:

Which of the following accounts are considered permanent accounts?

Which of the following is a TRUE statement regarding expenses?

Flanders Company has total assets of $400,000 and total liabilities of $280,000.The company collects an account receivable of $20,000.After this transaction,the company's debt ratio will be: (Round your final answer to two decimal places. )

Which of the following lists the accounts in order of liquidity?

When analyzing a company's debt ratio:

A Trial Balance Worksheet can be used to prepare:

The Shepherd Company has the following information available at December 31,2019: What are the total long-term assets at December 31,2019?

Revenues and expenses are closed to:

Under cash-basis accounting,no journal entry is recorded when a sale is made on account.

On October 1 of the current year,a company received $9,600 for services to be performed evenly over the next six months.If no adjusting entry was made on December 31 of the current year:

To analyze a company's financial position,decision makers use data and ratios computed from various items in the financial statements.

The beginning retained earnings balance is found on the:

After the closing entries are prepared and posted:

A company has the following adjusted trial balance: Which closing entry is needed?