Final Examination Study Guide
ACC/290 Version 1
3for the full $12,000. Financial statements will be prepared on July 31. Leyland Realty should makethe following adjusting entry on July 31:
Debit Unearned Rental Revenue, $2,000; credit Rental Revenue, $2,000
Debit Rental Revenue, $2,000; credit Unearned Rental Revenue, $2,000
Debit Unearned Rental Revenue, $12,000; credit Rental Revenue, $12,000
Debit Cash, $12,000; credit Rental Revenue, $12,000
Boyce Company purchased office supplies costing $5,000 and debited office supplies for the fullamount. At the end of the accounting period, a physical count of office supplies revealed $1,400 stillon hand. The appropriate adjusting journal entry to be made at the end of the period would be
debit Office Supplies Expense, $3,600; credit Office Supplies, $3,600
debit Office Supplies, $1,400; credit Office Supplies Expense, $1,400
debit Office Supplies Expense, $1,400; credit Office Supplies, $1,400
debit Office Supplies, $3,600; credit Office Supplies Expense, $3,600
Objective: Prepare an adjusted trial balance.
Given the following adjusted trial balance:DebitCredit Cash$1,562 Accounts receivable 2,098Inventory 3,124Prepaid rent 86Property, plant, & equipment 300 Accumulated depreciation$ 52 Accounts payable 82Unearned revenue 172Common stock 206Retained earnings 6,610Service revenue 218Interest revenue 56Salary expense 160Travel expense 66Totals $7,396$7,396Net income for the year is
$49614.Can financial statements be prepared directly from the adjusted trial balance?
They cannot. The general ledger must be used.
Yes, adjusting entries have been recorded in the general ledger and posted to the ledger accounts.
No, the adjusted trial balance merely proves the equality of the total debit and the total creditbalances in the ledger after adjustments are posted. It has no other purpose.
They can because that is the only reason that an adjusted trial balance is prepared.
Week Three: Completing the Accounting CycleObjective: Prepare closing entries, reversing entries, and a post-closing trial balance.