Exam 3: Review of a Companys Accounting System

The Walker Company uses the accrual basis of accounting. Walker Company's wages expense account had a $610,000 balance at the end of the year. The wages payable account had a $23,000 balance at the beginning of the year and a $45,000 balance at the end of the year. How much cash was paid for wages during the year?

Prior to preparing the organization's financial statements, the accountant prepares

Information related to the Berkley Company for the calendar year 2014 follows: Assuming no capital stock was issued during 2014, the net income earned by the Berkley Company during 2014 was

Figure APC-2 is the condensed worksheet for the Christopher Company as of December 31, 2014. Additional Information: Prepaid Insurance is for a two-year fire insurance policy dated July 1, 2014. The ending inventory amounts to $76. The building is being depreciated over a ten-year life, straight-line, no salvage value. The balance in Unearned Repair Service Revenue pertains to a contract sold on November 1, 2014, to provide service to a client for one year. Office supplies on hand at year-end amount to $14. At year-end, there are accrued salaries of $6. Consulting Revenue includes a contract for $60 received on October 1, 2014, for a one-year period of time. The tax rate is 50%. Required: Complete the worksheet, assuming that adjusting entries are made only at December 31.

The Nathan's Company rents numerous properties throughout the year. Nathan pays rents in advance in some cases, and in others, rents are paid after the rental period expires. The following data are included in Nathan's December 31 balance sheets: During 2015, Nathan paid $200,000 in rentals. In its accrual basis income statement for the year ended December 31, 2015, Victor should report rent expense of

The accountant failed to make the adjusting entry to record the depreciation for the year. This error would cause

Adjusting entries are made

On November 1, 2015, the Morrison Company purchased a two-year umbrella insurance policy for $3,600 and recorded the transaction by debiting Prepaid Insurance and crediting Cash. Which of the following adjusting entries would be used by Morrison to properly account for prepaid insurance on December 31, 2015?

With closing entries, you would expect to find all of the following except

The accounting cycle is a series of steps in which accounting information is contained in its transactions, events, and arrangements. What are the series of steps involved in this task?

What is the purpose of the worksheet?

Which statement is false?

How many steps are there in completing a worksheet?

The worksheet has a debit and credit column for all of the following except the

The Puzzle Maze Company sells games and puzzles using a perpetual inventory method. The following transactions took place in April 2014.

Which of the following is a major step in completing the accounting cycle?

What type of adjustments are necessary to convert cash basis to accrual based accounting?

Below is the chart of accounts for the Duclaw Dog Company. 1. Accounts Payable 2. Accounts Receivable 3. Accumulated Depreciation-Equipment 4. Allowance for Doubtful Accounts 5. Bonds Payable 6. Cash 7. Common Stock 8. Discount on Bonds Payable 9. Equipment 10. Insurance Expense 11. Interest Expense 12. Inventory 13. Notes Payable, due in 5 years 14. Prepaid Rent 15. Retained Earnings 16. Salaries and Wages Expense 17. Salaries and Wages Payable 18. Unearned Revenue . Indicate the proper balance sheet classification of each of the 18 numbered accounts in the trial balance by placing appropriate numbers after each of the following classifications. a. Current assets b. Property, plant, and equipment c. Current liabilities d. Long-term liabilities e. Stockholder’s Equity f. Income Statement account

A trial balance does not identify all types of errors, which of the following are errors are not identified using the trial balance?

Which statement is true?