a.Utilities Expense The adjusted trial balance will show the net income (loss) as an additional account. The following are inputs and outputs to the cooking process of a restaurant: Number of hours kitchen equipment is down for repairs. a. posting to the general ledger b.Prepaid Insurance b.Wages Payable Which of the following is not considered a special journal? A listing of a business entity's assets, liabilities, and owner's equity as of a specific date is a(n): A. balance sheet. 6. c.$35,000 Income statement b. d. Net loss is $5,227. |Current assets |$ 14,000 |Net income| $ 21,000 |Current liabilities |8,000 |Stockholders' equity |39,000 |Average assets |80,000 |Total liabilities |21,000 |To, Indicate in which of the following financial statement(s) you would likely find contributed capital. The sum of the credits exceeds the sum of the debits in the Balance Sheet columns on the end of period spreadsheet b. a. 6. - Statement of stockholders' equity. Hint: There were $2,000 of contributions during the period. d.Accounts Receivable, Fundamentals of Financial Management, Concise Edition, Don Herrmann, J. David Spiceland, Wayne Thomas, Carl S Warren, James M Reeve, Jonathan E. Duchac. $5,500 b. c. loss in the income statement. d.debit Insurance Expense, $1,500; credit Prepaid Insurance, $1,500, b.debit Insurance Expense, $1,800; credit Prepaid Insurance, $1,800, Equipment with an estimated market value of $30,000 is offered for sale at $45,000. b.A corporation's resources are limited to its individual owners' resources. d. single-step incom. b. c. Beverage Supplies Dr., Food Supplies Dr., Retail Items Dr. Other Accounts Dr., Cash Cr. d.before the income statement and balance sheet, c.after the income statement and balance sheet, The process of recording a transaction in the journal is called For example, for each $100 charged on Visa cards, a merchant might receive only$98. prepare financial statements c. reversing entries c.Ownership is divided into shares of stock. Direct labor costs are expected to increase by 15 percent. b. before the income statement and after the statement of owner's equity. C. communicate with other computers electronically. Accounts Receivable a debit to Income Summary account and a credit to Drawing account So far, computer systems cannot yet ________. b. balance sheet. A balance sheet shows: a. revenues, liabilities, and owner's equity. d.statement of cash flows, Prepaid expenses are eventually expected to become b.a bill is received in advance of services rendered Answer the question to help you recall what you have read. It also shows how much money the company has after all its liabilities, such as taxes and debt, are paid. The statement that represents financial position at a point in time is the: a. balance sheet b. statement of cash flows c. income statement d. statement of owner's equity, Indicate whether the following items would appear on the income statement, balance sheet, or owner's equity statement. The following accounts were taken from the Adjusted Trial Balance columns of the work sheet: b.assets increase; liabilities increase a.statement of owner's equity a.debit Merchandise Inventory, $158,000; credit Cost of Merchandise Sold, $158,000 An adjusted trial balance is prepared. a.design a. a.fixed asset On which financial statement will Income Summary be shown? What is the last account that should be listed in the Post Closing Trial Balance? c.revenue ledger b.expenses in the period when they are paid The Statement of Owner's Equity should be prepared, investments plus net income (loss) less withdrawals. $29,958 c. $22,315 Stock dividends distributable should be classified on the: a. income statement as an expense. Dec. 31Revenues925 d. $21,930, Accumulated Depreciation appears on the Is the Sales Revenue account found on the balance sheet or the income statement? There are two closing entries. The balance in the account "Accumulated Depreciation, Equipment" will be reported on the: a. None of these choices, Balance sheet accounts c.debit Prepaid Insurance, $1,800; credit Cash, $1,800 d.Records economic data but does not communicate the data to users according to any specific rules, b.Is an information system that provides reports to users regarding economic activities and condition of a business, The income statement will present Balance sheet c. Statement of stockholders' equity d. Statement of cash flows, Indicate in which of the following financial statement(s) you would likely find cash assets. c.snow removal services that have been provided but have not been billed or paid State whether the normal balance is a debit or a credit. The classified balance sheet will show which liability subsections? Retail Items Cr. A Statement of Owner's Equity (SOE) shows the owner's capital at the start of the period, the changes that affect capital, and the resulting capital at the end of the period. The financial statement prepared first is your income statement. revenue b. solvency Two important financial statements readily used by investors include the cash flow statement and statement of shareholders' equity. Which of the accounts below would be closed by posting a debit to the account? Using the following balance sheet and income statement data, what is the debt to assets ratio? d. other liabilities and long-term liabilities, a. current liabilities and long term liabilities, The following accounts are closed at the end of the accounting period except _____. B. decide how to record a business transaction. Key Takeaways Stockholders' equity is the value of a business's assets that remain after subtracting liabilities. Is the Accounts Receivable account found on the balance sheet or the income statement? c.expansion of a product line report to management a.cash receipts journal c. Even small companies use computerized accounting systems. Classify it as a current asset, a current liability, an expense, a fixed asset, a long-term debt, a revenue, or a stockholders' equity account. c. current assets and other equity a.Cash, debit; Wages Expense, credit (You should be able to use at least two core principles in your answer.). Net loss Oct. 2018 7,600 Owner investments 1,500 Wages payable 3,000 5. b.Merchandise Inventory a. a. b) A liability on the balance sheet. Of the following, which would be prepared last? Use I for the income statement, E for the statement of owner's equity, and B for the balance sheet. a.an agreement that has been signed for snow removal services for the next three months b.are due to be paid in more than one year b. C. The costs of all jobs started during the period, completed or not. b.Janet James, Capital The post-closing trial balance differs from the adjusted trial balance in that it, does not include income statement accounts. c.Fees Earned calendar year. c.owner's equity, assets, liabilities, revenues, expenses Income statement b. d.Cash, debit; Wages Payable, credit, The phase of accounting system installation in which the information needs of people in the organization are taken into account is 2. Accounts receivable and inventories increased by $73,000 and $49,000, respectively. Income statement b. There are two closing entries that update the owner's equity account. b.purchases journal The accounting equation is a representation of how these three important components are associated with. b.been earned and not recorded as revenue d.Wages Expense, How does the purchase of equipment by signing a note affect the accounting equation? Income Taxes Expense. Unearned Fees appear on the: a. balance sheet in the current assets section. a. current liabilities and long-term liabilities a.supply chain management a. the Income Statement columns of the end-of-period spreadsheet Her net income for the month was 10,000, and she withdrew 8,000. c.A/R, $750; A/P, $700 d.been paid but have not yet been incurred, b.been incurred but not paid and not recorded. Adjusting entry; reverse entries The accounts receivable (A/R) control account and the accounts payable (A/P) control account balances would be d. The adjusted trial balance will be used to record the adjustments for the period. _ _ _1. c. after the income statement and the statement of owner's equity. State whether the normal balance is a debit or a credit. The ownership of the business is reflected in the: (a) current assets on the balance sheet. Classify it as a current asset, a current liability, an expense, a fixed asset, a long-term debt, a revenue, or a stockholders' equity account. Which of the following is not a characteristic of a corporation? b. preparing the closing entries Each individual entry in the revenue journal is posted to the a. accounts receivable controlling account b. accounts receivable subsidiary ledger c. revenue controlling account d. accounts receivable subsidiary ledger and the controlling account. a.assets increase; assets decrease b.assets, liabilities, owner's equity, revenues, expenses The easiest and simplest way of calculating stockholders' equity is by using the basic accounting equation. B. in the operating section of the income statement. Determine the owner's equity ending balance for the period. c. If the company becomes illiquid in future years, what prospects, if any, do today's employees have of receiving the pension benefits that they have earned to date? _16. b.proprietorship Net income is $3,580. c.Wages Payable, debit; Wages Expense, credit None of these choices are correct. a. Structured Query Language (known as SQL) is a programming language used to interact with a database. Excel Fundamentals - Formulas for Finance, Certified Banking & Credit Analyst (CBCA), Business Intelligence & Data Analyst (BIDA), Financial Planning & Wealth Management Professional (FPWM), Commercial Real Estate Finance Specialization, Environmental, Social & Governance Specialization, Business Intelligence & Data Analyst (BIDA), Financial Planning & Wealth Management Professional (FPWM). A cash investment made by the owner should be recorded in the a. cash receipts journal b. purchases journal c. cash payments journal d. revenue journal 18. Supplies Expenses3,800 a. in the statement of cash flows The balance sheet is also referred to as the statement of financial position or the statement of financial condition. The accountant has implemented a purchases journal. (c) balance sheet. 6 verify that the debits and credits are in balance, Once the adjusting entries are posted, the Adjusted Trial Balance is prepared to, balance sheet in the current assets section, Notes Receivable due in 350 days appear on the. Which one of the fixed asset accounts listed below will not have a related contra asset account? What does the productprocess matrix tell us? What is the major difference between the unadjusted trial balance and the adjusted trial balance? c. $23,030 b. The balance sheet reflects an instant or a POINT in time. ???????????? b. ???????????? b.debit balance of $15,000 c.perpetual Locate the company's total assets on the balance sheet for the period. Income Statement c. Statement of Stockholders' Equity d. Statement of Cash Flows e. Both A and C f. Both A and B g. All of the listed financial statem, Using the following information from a balance sheet and an income statement, compute the (1) profit margin, (2) asset turnover, (3) return on assets, (4) debt to equity ratio, and (5) return on equit, Using the following information from a balance sheet and an income statement, compute the (1) profit margin, (2) asset turnover, (3) return on assets, (4) debt to equity ratio, and (5) return on equity. Fees Earned750 c.B1B e-commerce (b) retained earnings statement. a.total revenue earned for the month of January (4) a. income statement b. balance sheet c. both the income statement and the balance sheet d. neither the income statement nor the balance sheet, The financial statement that reports the assets, liabilities, and stockholders' (owner's) equity at a specific date is the: a. Notice the amount of net income (or net loss) is brought from the income statement. b.Paid cash in advance for services to be performed. If the individual subsidiary ledger accounts contained the following data: Cadence Company, Vendor, $200, credit balance Franklin Enterprises, Customer, $750, debit balance Marcelo Construction, Client, $125, debit balance Peyton Supplies, Supplier, $375, credit balance The accounts receivable control account and the accounts payable control account balances would be a. A/R, $1,375; A/P, $375 b. A/R, $525; A/P, $175 c. A/R, $875; A/P, $575 d. A/R, $750; A/P, $700 _3. post journal entries to the ledger Balance sheet b. c. statement of owners equity Unearned fees appear on the balance sheet as a current liability What conclusions can be drawn regarding Brayden's ability to meet its financial obligations? A general journal is given in the Working Papers. Use the following information in the adjusted trial balance for Stockton Company to answer the following questions. What is the effective interest rate for a loan of $20,000\$ 20,000$20,000 for three years if the interest is compounded quarterly at a rate of 12%12 \%12% ? $75,800 c. $35,800 D. $48,000, Unearned revenue is always a(n): a. Balance sheet c. Statement of stockholders' equity d. Statement of cash flows. d. income statement as an operating expense, b. balance sheet in the property plant and equipment section. Although this statement is not always considered one of the main financial statements, it is still useful for tracking your retained earnings and seeking outside financing. a.$30,000 Like any financial statement, the heading is made up of three lines. After posting the second closing entry to the income summary account, the balance will be equal to, the net income or net loss for the period. Reverse entries; adjusting entry Net income, as corrected, is The three financial statements that nearly all companies of all sizes prepare are the cash flow statement, income statement, and balance sheet. (c) balance sheet. (2) Period being reported. a. Is its normal balance a debit or a credit? When preparing the statement of owner's equity, the beginning capital balance can always be found: a. in the statement of cash flows b. in the general ledger c. in the Income Statement. What would be the ending balance for Cash in the general ledger? What is the best explanation for this journal entry? A. b. Dec. 31Fees Earned750 In a certain store, there is a .03 probability that the scanned price in the bar code scanner will not Therefore, owner's equity can be calculated as follows: Owner's equity = Assets - Liabilities Where: Assets = $1,000,000 + $1,000,000 + $800,000 + $400,000 = $3.2 million Liabilities = $500,000 + $800,000 + $800,000 = $2.1 million Jake's Equity = $3.2 million - $2.1 million = $1.1 million On the companys balance sheet, shareholders equity is represented under the heading Shareholders Equity or Stockholders Equity. The section usually comprises three components: The general format for the statement of owners equity, with the most basic line items, usually looks like the one shown below. Supplies. In What order should they be prepared? analyze and record transactions, post transactions to the ledger, prepare a trial balance, analyze adjustment data, prepare adjusting entries, prepare financial statements, journalize closing entries and post to the ledger, and prepare a post-closing trial balance. d.periodic, An indication that the end-of-period spreadsheet columns are in balance and the spreadsheet is complete is c.debit balance of $37,500 The balance sheet reflects a company's solvency and financial position. Types of Equity. Question: The income statement should be prepared a. before the statement of owner's equity and balance sheet b. after the statement of owner's equity and before the balance sheet c. after the statement of owner's equity and balance sheet a. after the balance sheet and before the statement of owner's equity Show transcribed image text Expert Answer (a) Notes payable (b) Advertising expense (c) Owner's capital (d) Cash (e) Service revenue, In which of the following financial statement(s) would you likely find the Retained Earnings account? B. net income is assigned to one partner. financial convertibility. b.preparing the closing entries Is the Accruals account found on the balance sheet or the income statement? d.are due to be paid in 5 to 10 years, Which of the following is not considered to be a liability? c. How much would the Components Divisions income from operations increase? In what order should they be prepared? 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