iceounting record and +4 worksheet Is a perma oe epee ey Bia Se pmpcsot te worksheet E . What is the relationship, if any, between the amount Men the sted bal Cancun oa sciypanve eens are $1550 expenses #1 GidoM, noni rane stone clone He vrtteet wl te net ncon of 12 OODsppet Mien epee ested rover, n wich coos tabs dec appear? Pos tpi ss propre formal facil sat mou ob ofthe Gata a inthe tenon oho STi verte 6, Hemi te acount) dele and rede in achef bance or heya 1. Dai the ar of ie Income Suma aco andidenul the pes of suman is daca o. Win are the onent and pe atta 2, Which af he flowing scouns would nt appa inte postlosing ta talace> Tres Peo Eaulpment, Depreton Expense Owners Dine ins” Unramed Sener Rene, Meme Depecaoneauimen and See Reve Jo Dining banca «reign Sea ingens: re evesng is ee UT nthe eqn nich they ee ade the thos reaued spe i the acoutng cee tro pumalane A ounting cycle. a postclosing Tasers E4+ The steps in using a worksheet are presented in random order below: List the steps 1 the proper order by placing numbers 1-5 in the blank spaces, eee >») Prepare a trial balance on the worksheet, Enter adjusted balances, 2, 13, 4 15. 16, 17, 18, . Using Apples, annual Brief Exercises 167 Identify, in the sequence in which they are prepared, the three trial balances that are often used to report financial information about a company How do correcting entries differ from adjusting What standard classifications are used in preparing a classified balance sheet? ‘What is meant by the term “operating cycle"? k Define current assets, What basis is used for arrang- k ing individual items within the current assets section? Distinguish between long-term investments and prop. erty, plant, and equipment. (@) What is the term used to describe the owner's equity section of a corporation? (b) Identify the two owners’ equity accounts in a corporation and indicate the purpose of each. port, determine its current abilities atl September 25, 2010, and September 24, 2011. Were curren liabilities current assets in these two years? . Cigale Company prepares reversing entries, If the adjusting entry for interest payable is reversed, what type of an account balance, if any, will there be in Interest Payable and Interest Expense after the revers ing entry is posted? At December 31, accrued salaries payable totaled $3,500. On January 10, total salaries of $8,000 are paid. (a) Assume that reversing entries are made at January 1. Give the January 10 entry, and indicate the Salaries and Wages Expense account balance after the entry is posted. (b) Repeat part (a) assuring entries are not made, AN List the steps in preparing a workshers Wonk ) —__ Extend adjusted balances to appropriate statement columns, ijn worksheet 2) __ Enter adjustment data. £42 The ledger of Clayton Company includes the following unadjusted balances: Pre. tid Insurance $3,000, Service Revenue $58,000, and Salaries and Wa (@) expired insurance $1,800; (b) services performed crued salaries payable $800. Enter the *t and complete the worksheet Austing entries are required for 100, but unbilled and uncollected; and (c) dadjusted balances and adjustments into a worksh ~Total the statement columns, compute net incon (loss), and complete the Prepare partial worksheet s Expense $25,000. (10) atv all counts, (Note: You will need to add the following accounts: Accounts Receivable, Salaries ‘d Wages Payable, and Insurance Expense.)168 4 Completing the Accounting cycle dentify worksheet colures for selected accounts Prepare cos deiger balance: os closing entries; underline aad balance Eaccounts (02), AP Sovimalize and poste ares using te threecor, densify pase-closing tl woa.e ise the required steps ithe renting eye i sequence ys K Prepare comectng entries 105), AN Prepare the current assets tin of a balance set (06), AP Cassi accounts on balance 08),C Prepare reversing enris o7,AN BE4-3 The following selected accoune appear in the adjusted teal bela columns of the worksheet for Goulet Company soatulated Depreciation; Deprecins Expense; Owner's worn Owner's Drawings: Sendce REET peperes and Accounts Payable. nett the caer ial statement column (COME rt Dr. balance sheet Cr et) to which each ‘balance should be extended Tictd The ledger of Rios Company SONG the following balances: Owner's CAPA BEF p00, Owners Drawings $2,000; oe Ane ae $40,000; Salaries and Wages SSPSOSS $30 Oto, and Supplies Expense $7,000. Fp ve closing entries at December 3} BEA-S Using the data in BEA, envet the balances in T Pest aderline and balance the accounts ‘counts, post the closing entries, {264-6 The income statement for eet, willow Bet re Service Revenue $1600, Sait low ages Expense $8,200, Mainicnatre 31 swir Expense 82,500, and Net mer vase prepare the entries to close the angenue and expense accounts. Por, Income yo the revenue and expense Acro rocess for these accounts usin ‘he thvee-column form of Golf Club for the month ending July tnd complete the closing BEA-7 Using the data in BES3, densify the accounts chat would Be included in a post- losing trial balance. tees The steps inthe accounting CY TE tisted in random order below. List 1 SP Peproper sequence, assuming RO cycle 0 fg prepared, by placing numbers 1-9 in the blank spaces: (a) ___— Prepare atrial balane® (By a Jouraize the © @— ro) © @ — wo @ pees Ar creighton company the FONE errors were discovered after the Hansaeons Best peon jouralized and posted, PreDas® nine correcting entries = Jouenatize and post closing ents Prepare financial statements — ournalize and post adjusting ems = Post to ledger accounts Prepare a post-closing tial balance Prepare an adjusted tral balance ~ alvze business transactions Ta collection on account from a cuSeNTE! for $870 was recorded as a debit (0 cash $870 aa creait to Bervice Bevenue $870 aie purchase of store supplies 09 36S) for plies $1,750 and a credit 10 “Accounts Payable $1,750 tpea-t0 The balance sheet debit cols the worksheet for Hamidi Com ae ollowing accounts: Accouns tmvable $12,500; Prepaid Insure $3,600; the ps applies $5:200; and Debt Inset {ghoreaerm) 6,700. Prepare HE current Site section ofthe balance sheet HetSe "ie agcounts in proper sequence 1) was recorded as a debit to SOP jpeat The following are the major balancs sheet classifications! Current assets (CAD Long-term investments (11) Propenty, plant, and equipment jntangible assets 1A) Match each ofthe following accounts 10115 proper balance sheet classification ‘Current liabilities (CL) Long-term liabilities (LT) ‘Owner's equity (OB) Income taxes payable eee investments O8e 207 Land Inventory Accounts payable ~ ‘accounts receivable — Aeeetmulated depreciation buildings Buildings Cash = copyrights speatd At October 31, Burgess COMPET, made an accrued expense Bea yor slaves. Prepare the reversing £274 ‘on November 1, and it a efaries and Wages Payable and SalaisS ne ages Expense alter Postne entrytance columns of the worksheet for Nanduri Company at June 30, 2014, “gat The tal bal fre as follows NANDURI COMPANY Worksheet For the Month Ended June 30, 2014 ‘Trial Balance — 320 ‘Accounts Receivable Supplies ‘Accounts Payable Unearned Service Revenue (Owner's Capital Service Revenue Salaries and Wages Expense Miscellaneous Expense 0 ‘Other data: 1 Aphysical count reveals $500 of supplies on hand. 2. §100 of the unearned revenue is still unearned at month-end, 3, Accrued salaries are $210. Instructions Enter the tral balance on a worksheet and complete the workshe 42 The adjusted trial balance columns of the worksheet for DeSousa Company'are as follows DESOUSA COMPANY ‘Worksheet (partial) For the Month Ended April 30, 2014 Adjusted ‘Trial Balance Account Titles Dr. _ Cr. Cash 10,000 Accounts Receivable 7840 Prepaid Rent 2280 Equipment Accumulated Depreciation—Equip, Notes Payable Accounts Payable (Owner's Capital (Ouner's Drawings Service Revenue Salaries and Wages Expense Rent Expense Depreciation Expense Interest Expense Instructions ‘Complete the worksheet. Exercises com Complete the works L01),AP170 Completing the Prepare financial statements from worksheet. i ome § Total axets 528, Journalize avd post closing ‘Muries and prepare a pos rial balance Post-cosing tit b 3,170 prepare adjssing emis From a worksheet, and Fra balances 0 worksheet (onan Deri worksheet date 1011, AN Prepare closing entries and prepare a post-closing til balance aaa Accounting Cycle Fd 2 ead April e4-3 Worksheet data for ee ior adaitonalivestnents inthe Business 12 DeSousa Company Instructions Instruct income statement, an ownees CaN statement, and a classified balance sheet ss Worksheet data for DeSousa Company 2° presented in B42 Instructions {ap Journaize the closing entries at (@) Pout the closing entries t9 Income (b) rapare a pst-losing tal balance at April 30. xs Capital. Use accounts. EAS The adjustments columns of the worksheet for Misra Company are shown below Recounts Receivable Prepaid Insurance Accuraulated Depreciation Salaries and Wages Payable Service Revenue Salaries and Wages Expense Insurance Expense Depreciation Expense Equipment Instructions {@) Prepare the adjusting entries {3 ssuming the adjusted trial balan smmount for each account is normal nicste 9° Ascoriie fatement column 10 which ah ‘balance should be extended. ca Selected worksheet ata for Elsayed Company are presented below: Agjusted ‘trial Balance _ - 34,000 20,000 Accounts Receivable Prepaid Insurance Supplies Ree ulated Depreciation—Eanipment Salaries and Wages Payable Service Revenue Insurance Expense Depreciation Expense ‘Supplies Expense Salaries and Wages EXpense 10,000 4,500 49,000 Instructions (G) Pill in the missing amounts (Prepare the adjusting entries hat WS made. 4-7 Kay Magill company had the Following adjusted ti balance:Exercises 171 KAY MAGILL COMPANY ‘Adjusted Trial Balance For the Month Ended June 30, 2014 Adjusted Trial Balance Account Titles Cash Accounts Receivable Supplies Accounts Payable Unearned Service Revenue (Owner's Capital Owner's Drawings Service Revenue Salaries and Wages Expense Miscellaneous Expense ‘Supplies Expense Salaries and Wages Payable Instructions {o Prepare closing entries at June 30, 2014 {) Prepare a post-closing trial balance. (n) Totals $8,096 48 Plevin Company ended its fiscal year on July 31, 2014, The company’s adjusted trial nee ag ofthe end of its fiscal year is shown below. LEVIN COMPANY ‘Adjusted Trial Balance duly 31, 2014 yant Title Debit _Credit 9,840 Accounts Receivable 8,780 Equipment 15,900 ‘Accumulated Deprecistion—Equip. ‘Accounts Payable Unearned Rent Revenue Owner's Capital (Owner's Drawings Service Revenue Rent Reventle Dep Salaries and Wage: Utilities Expense Instructions (2) Prepare the closing enties using paze 315 Peres hr’ Capital and No, 350 Income Summary aecounts (Use the chres-column form.) (6) Prepare a postclosing trial balance at July 31 £49 ‘The adjusted tial balance for Plevin Company is presented in E48 repre financial statements Instructions eee (a) Prepare an income statement and an owner’ equity hot make any capital investments during the year: (b) Prepare a classified balance sheet at July 31 statement for the year: Plevin did (6) '172. 4 Completing the Accounting Cycle the accounting ese (oa,c 2),AP (6) Net income $5,000 05), AN 105), AN Prepare a classified balance sheet. (06), AP 4-10 Janis Engle has prepared the following list of statements about the accounting cycle +. “Journalize the transactions” is the frst step in the accountng cycle. soaring entries are a required step inthe accounting le 2 Revere tries do not have to be part ofthe counting ele a corre ect i prepared, some steps ofthe accounting cele are incorporated into the worksheet Serna tinting cycle begins with the analysis of business transactions and ends with the preparation of a post-closing trial balance. 6 eee the accounting eycle occur daly during the secount'og POT $ The sep of "post tothe ledger accounts” occurs before thes ff “journalize the trans- 4, Cheaing entries mast be prepared before financial statements Sn °° prepared, Instructions Instruction statement as true oF false I false, indicate how 10 correct the statement, 4-11 Selected accounts for Heather's Salon are presented below AllJune 30 postings are from closing entries. Salaries and Wage __Serviee Revenue. __Owner’s Capital aio 3200 | 6 So 18,100] 3500 | 6/1 12000 "| 6130 5,000 Instructions (a) Prepare the closing entries that were made, {bp Post the closing entries to Income Summary. g4-12 Andrew Clark Company discovered the following efor made in January 2014 TL a payment of Salaries and Wages Expense of $700 was debited to Bauipment and cred ited to Cash, both for $700. ae eee Fs 000 from a client on account was debited to Cash ‘$100 and credited to Service Revenue $100. 9 eects of equipment on account for $760 was debited to Equipment $670 and credited to Accounts Payable $670. Instructions drt eerect the errors by zeversing he incorrect entry and Preparing the correct entty (3) Correct the errors without reversing the incorrect ent 4-13 Keenan Company has an inexperienced accountant, Sorin the first 2 weeks ont | fob, the accountant made the following errors in Journalizing transactions, All eH ‘were posted as made. 1. A payment on account of $840 to a creditor was debited to Accounts Payable $480 aad credited to Cash $480. 2. The purchase of supplies on account for ited to Accounts Payable $56 3, $500 withdrawal of cash for P. Keenan's personal use aS debited to Salaries #8 Wages Expense $500 and credited to Cash $500. seo was debited to Equipment $56 and Instructions Prepare the correcting entries. 4-14 The adjusted trial balance tains the accounts shown next.