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Classified balance sheets commonly include the following categories: A. Current assets B. Long-term investments C. Plant assets D. Intangible assets E. Current liabilities F. Long-term liabilities G. Equity. Match the typical classification of each item below with its correct balance sheet category (A through G) . -Investment maturing in two years


A) G
B) B
C) A
D) C
E) F
F) D
G) E

H) A) and C)
I) A) and F)

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Revenue and expense accounts are permanent (real)accounts and should not be closed at the end of the accounting period.

A) True
B) False

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On November 1 of the current year,Salinger Company paid $9,600 cash for a one-year insurance policy that took effect on that day.On the date of the payment,Salinger recorded the following entry:  Nov. 01  Insurance Expense9,600Cash 9,600\begin{array}{llr} \text { Nov. 01 } & \text { Insurance Expense} &9,600\\ &\text {Cash } &&9,600\\\end{array} Assuming Salinger only prepares adjustments at year-end,prepare the required adjusting entry at December 31 of the current year.

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($9,600/12 mo.= $800...

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The Unadjusted Trial Balance columns of a work sheet total $84,000.The Adjustments columns contain entries for the following: Office supplies used during the period,$1,200. Expiration of prepaid rent,$700. Accrued salaries expense,$500. Depreciation expense,$800. Accrued service fees receivable,$400. The Adjusted Trial Balance columns total is:


A) $80,400.
B) $84,000.
C) $85,700.
D) $85,900.
E) $87,600.

F) A) and E)
G) A) and D)

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Income Summary is a temporary account only used for the closing process.

A) True
B) False

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Failure to record depreciation expense will overstate assets and understate expenses.

A) True
B) False

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Accumulated Depreciation and Service Fees Earned would be sorted to which respective columns in completing a work sheet?


A) Balance Sheet and Statement of Retained Earnings-Credit and Income Statement-Credit.
B) Balance Sheet and Statement of Retained Earnings-Debit and Income Statement-Debit.
C) Income Statement-Debit and Income Statement-Credit.
D) Balance Sheet and Statement of Retained Earnings-Debit and Balance Sheet and Statement of Retained Earnings-Credit.
E) Balance Sheet and Statement of Retained Earnings-Debit; and Income Statement-Credit.

F) A) and B)
G) A) and D)

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Show the December 31 adjusting entry to record $750 of earned but unpaid salaries of employees at the end of the current accounting period.

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\[\begin{array} { c c c }
\te...

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Which of the following accounts showing a balance on the post-closing trial balance indicate an error?


A) Office Equipment.
B) Accumulated Depreciation-Office Equipment.
C) Depreciation Expense-Office Equipment.
D) Retained earnings.
E) Salaries Payable.

F) D) and E)
G) A) and B)

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Tiptoe Shoes,had annual revenues of $185,000,expenses of $103,700,and paid dividends of $18,000 during the current year.The retained earnings account before closing had a balance of $297,000.The Net Income for the year is:


A) $185,000
B) $63,300
C) $81,300
D) $360,300
E) $378,300

F) C) and D)
G) None of the above

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Identify the types of adjusting entries and explain the purpose of each type.

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Adjusting entries can be grouped into tw...

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The calendar year-end adjusted trial balance for Blessinger Co.follows: The calendar year-end adjusted trial balance for Blessinger Co.follows: Required: (a)Determine the amounts of current assets and current liabilities.(Note: A $9,000 installment on the long-term note payable is due within one year.) (b)Calculate the current ratio.Comment on the ability of Blessinger Co.to meets its short-term debts. Required: (a)Determine the amounts of current assets and current liabilities.(Note: A $9,000 installment on the long-term note payable is due within one year.) (b)Calculate the current ratio.Comment on the ability of Blessinger Co.to meets its short-term debts.

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(a)Current assets = Cash + Accounts Rece...

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On April 1,a company paid the $1,350 premium on a three-year insurance policy with benefits beginning on that date.What amount of the insurance expense will be reported on the annual income statement for the year ended December 31?


A) $1,350.00.
B) $450.00.
C) $1,012.50.
D) $337.50.
E) $37.50.

F) D) and E)
G) A) and D)

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Which of the following errors would cause the Balance Sheet and Statement of Retained Earnings columns of a work sheet to be out of balance?


A) Entering an asset amount in the Income Statement Debit column.
B) Entering a liability amount in the Income Statement Credit column.
C) Entering an expense amount in the Balance Sheet and Statement of Retained Earnings Debit column.
D) Entering a revenue amount in the Balance Sheet and Statement of Retained Earnings Debit column.
E) Entering a liability amount in the Balance Sheet and Statement of Retained Earnings Credit column.

F) D) and E)
G) A) and B)

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The calendar year-end adjusted trial balance for Blessinger Co.follows: The calendar year-end adjusted trial balance for Blessinger Co.follows: Required: (a)Prepare a classified year-end balance sheet.(Note: A $9,000 installment on the long-term note payable is due within one year.) (b)Prepare the required closing entries. Required: (a)Prepare a classified year-end balance sheet.(Note: A $9,000 installment on the long-term note payable is due within one year.) (b)Prepare the required closing entries.

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blured image *NI = $430,800 - $90,000 - $5,200 - $5,...

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Match the following terms with the appropriate definition. -The accounting system that recognizes revenue when cash is received and records expenses when cash is paid.


A) Accrued revenues
B) Expense recognition (matching) principle
C) Cash basis accounting
D) Depreciation
E) Accrual basis accounting
F) Interim financial statements
G) Straight-line depreciation
H) Time period assumption
I) Fiscal year

J) C) and H)
K) C) and I)

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Under the alternative method for recording prepaid expenses,which is the correct set of journal entries?


A)  Initial Entry  Adjusting Entry  Insurance Expense  Prepaid Insurance  Cash  Insurance Expense \begin{array} { | l | l | } \hline{ \text { Initial Entry } } & { \text { Adjusting Entry } } \\\hline \text { Insurance Expense } & \text { Prepaid Insurance } \\\hline \text { Cash } & \text { Insurance Expense } \\\hline\end{array}
B)  Initial Entry  Adjusting Entry  Cash  Prepaid Insurance  Insurance Expense  Insurance Expense \begin{array} { | l | l | } \hline { \text { Initial Entry } } &{ \text { Adjusting Entry } } \\\hline \text { Cash } & \text { Prepaid Insurance } \\\hline \text { Insurance Expense } & \text { Insurance Expense } \\\hline\end{array}
C)  Initial Entry  Adjusting Entry  Prepaid Insurance  Prepaid Insurance  Cash  Insurance Expense \begin{array} { | l | l | } \hline { \text { Initial Entry } } & { \text { Adjusting Entry } } \\\hline \text { Prepaid Insurance } & \text { Prepaid Insurance } \\\hline \text { Cash } & \text { Insurance Expense } \\\hline\end{array}
D)  Initial Entry  Adjusting Entry  Prepaid Insurance  Insurance Expense  Cash  Prepaid Insurance \begin{array} { | l | l | } \hline { \text { Initial Entry } } & { \text { Adjusting Entry } } \\\hline \text { Prepaid Insurance } & \text { Insurance Expense } \\\hline \text { Cash } & \text { Prepaid Insurance } \\\hline\end{array}
E)  Initial Entry  Adjusting Entry  Prepaid Insurance  Cash  Insurance Expense  Prepaid Insurance \begin{array} { | l | l | } \hline { \text { Initial Entry } } & { \text { Adjusting Entry } } \\\hline \text { Prepaid Insurance } & \text { Cash } \\\hline \text { Insurance Expense } & \text { Prepaid Insurance } \\\hline\end{array}

F) A) and D)
G) B) and C)

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Because it is a necessary financial statement,the work sheet must be prepared according to specified accounting procedures.

A) True
B) False

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Explain why temporary accounts are closed each period.

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Temporary accounts accumulate data relat...

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Long-term investments can include land held for future expansion.

A) True
B) False

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