Muitipte Choice Identify the letter of the choice that best completes the statement or answers the question I 6 10, The work sheet i a. formal statement issued to creditors b, working paper often wed by accountants to summarize adjusting entries . replacement for the ledger 4. replacement for a set of financial statements The difference between the totals of the debit and eredit columns of the Adjusted Trial Balance columns on a work sheet: 4 isthe amount of net income or loss b, indicates there isan error on the work sheet 6. isnot unusual for preparing the work sheet d._ isthe not difference between revenue, expenses, and drawing Net income appears on the work sheet in the: 4 debit colunm of the Balance Sheet columns b, debit colum of the Adjustments columns & debit colunmn of the Income Staterment columns 4d. credit columa of the Income Statement columns A net loss appears on the work sheet in the 4. debit column of the Balance Sheet columns b, debit colum of the Trial Balance coluns €. debit column of the Income Statement columns credit colume of the Adjustments eoluinns A net loss appears on the work sheet 4. when revenue exceeds expe b, when expenses exeved revenues ©. every time the Adjusted Trial Balance columns do not balance on every time the Income Statement columns donot balanee on the After net income is entered on the work sheet, the Balance Sheet debit and credit columns must: be thesame amount as the total amount of the Income Statement debit and credit columns b egiual each other ©. be thesame amountas the total amount inthe Adjusted Trial Batance debit and credit columns 4. not be equal to euch other and need not be the same total amounts columns on the work sheet any other pair of Ifthe work sheet does not contain a pair of columns for the Retained Earnings dividends amounts are: a. omitted b. extended to the Balance Sheet columns extended to the Income Statement columns dd, extended to the Adjustments columns tatement, the capital stock and Which of the following appears inthe Balance Sheet columns of the work sheet? 4. Equipment b. Fees Eamed ©. Depreciation Expense 4d. Supplies Expense Which of the following appears inthe Balance Sheet columns of the work sheet? 4. Uneamed Fees b. Rent Expense ©. Salaries Expense d. Service Revenue Which of the following appears inthe Balance Sheet columns of the work sheet? Accounts Receivable b. Rent expense ©. Supplies Expense d. Service Revenue Which of the following appears in the Balance Sheet columns of the work sheet? ‘a Prepaid Insurance20, b. Wages Expenses ©. Rent Revenue di Service Revenue ‘An indication that the work sheet colunms are in balance and the work sheet is completed is a. the word "Total" is written at the bottom of each pair of columns b, cach pair of columns is double underlined each pair of columns has the totals circled the final figures are written in ink After all of the account balances have been extended to the Balance Sheet columns of the werk sheet, the totals of the Debit and Credit columns are P39,750 and P21,750, respectively. What is the amount of net income arnet Joss for the period!” a PIR,000 net incoine bb, P18,000 net loss, ©. P39,750 net income . P21,750 net income After all of the account balances have been extended to the Balance Sheet columns of the work sheet, the totals of the Debit and Credit columns are P30,750 and P69,750, respectively. What is the amount of net income or net loss for the period? a P39,000 net income b. P39,000 net loss . P30,750 net income d. P69,750 net income After all of the account balances have been extended to the Income Statement columns of the work sheet, the totals of the debit and credit columns are P89,900 and P67,600, respectively. What is the amount of the net income or net loss for the period? a P22,300 net income b. P22,300 net loss .P89,900 net income d.P67,600 net loss After all of the account balances have been extended to the Income Statement columns of the work sheet, the totals of the debit and credit columns are P92,300 and P67,600, respectively. What is the amount of the net income or net loss for the period? a P24,700 net income b. P24,700 net loss ©. P92,300 net income dd. P92,300 net loss ‘When preparing the Retained Earnings Statement, the beginning capital bakunce can always be found a. inthe Income Statement columns of the work sheet im the statement of cash flows, inthe general ledger inthe general journal Unearned Fees appears on the: & balance sheet b. Retained Eamings Statement income statement statement of cash flows ‘Accumulated Depreciation appears on the: balance sheet b. Retained Eamings Statement income statement statement of cash flows Salaries Payable appears on the a balance sheet b. Retained Eamings Statement income statement statement of cash flows Depreciation Expense appears on the: a. balance sheet Retained Earnings Statement income statement statement of cash flows amos23, 24, 25, 26, 21. 28, 29, 30, 31 33, Long-term Liabilities appears on the: a. balance sheet b. Retained Eamings Statement ©. income statement statement of cash flows Accounts Receivable appears on the’ a balance sheet b. Retained Eamings Statement income statement statement of cash flows Accumulated Depreciation appears on the: a. balance sheet in the current assets section b. balance sheet in the fixed assets section balance sheet in the long-term liabilities section income statement as an operating expense Notes Receivable duc in 350 days appears on the: ‘balance sheet in the current assets section bb. balance sheet in the fixed assets section c. balance sheet in the current liabilities section income statement as an expense Unearned Fees appears on the: a. balance sheet in the current assets section b. balance sheet as a current liability balance sheet in the Stockholders’ equity section income statement as revemue Which one of the fixed asset accounts listed below will not have a related contra asset account? a. Office Equipment bland ©. Delivery Equipment Building The cost of office supplies to be used in future periods is ordinarily shown on the balance sheet asa: a. fixed asset current asset ©. contra asset d._ current liability Prepaid insurance is reported on the balance sheet as a: & currentasset b. fixed assot ©. current liability long-term liability Atthe end of an accounting year, in what statement would a balance in the prepaid insurance account appear? a balance sheet b. income statement statement of cash flows d._ Retained Eamings Statement Which of the following is reported on the Retained Earnings Statement for the current year? a Accumulated depreciation b. Stockholders! additional ce. Rent expense Wages payable Adjusting entries are dated in the journal as of: athe date they are actually journalized. b. thellast day of theaccourting period, ©. the first day of the accounting period.D. the middle of the accounting period. Adjusting entries: a. need not be joumalized since they appear on the work sheet and the ledger accounts need nat be adjusted. b. need not he posted if the financial statements are prepared from the work sheet are not needed if reversing entries are prepared d._muist be jourmalized and posted wwestment made during the current period34. 36, 37. 38 40, 41 43, Closing entries 4 need not be jouralized if reversing entries ate prepared b. need not be posted if the financial statements are prepared from the work sheet ©. are not needed if adjusting entries are prepared ist be journalized and posted Closing entries are dated in the journal as of: 4 the date they areaetwally journalized, although they are generally prepared after the end of the aecounting period . the last day of the accounting period although they are actually jourmalized after the end ‘ofthe accounting period ©. the firstdlay of the accounting period, although they are actually journalized after the end of the accounting period 4. the firstday of the subsequent accounting period Which of the following accounts should be closed to Income Summary at the end of the fiscal year? Supplies Expense b. Accumulated Depreciation ©. Prepaid Expenses 4. Unearmed revenues ‘Which of the following accounts will nof be elosed to Income Summary at the end of the fiscal year? a. Salaries Expense b. Fees Earned & Uneamed Rent 4, Depreciation Expense Which of the following a a. Rent Expense b. Fees Earned © Theome Summary 4. Depreciation Expense Which of the following accounts ordinarily appears in the post-closing tial balance? a. Dividends b. Supplies Expense ©. Fees Farmed 4d Uneamed Rent The eniry to close the appropriate insurance account at the end of the accounting period is debit a. Income Summary; credit Prepaid Insurance b. Prepaid Insurance; credit Income Summary ¢. Insurance Expense: credit Income Summary 4. Income Summary; credit Insurance Expense Which of the following accounts appears on a post-closing trial balance? a. Insurance Expense b. Prepaid Insurance ©. Dividends 4. Fees Earned ‘ounts will be closed to Retained Zamings at the end of the fiscal year? Which of the following accounts appears on a post-closing trial balance? a. Insurance Expense b. Fees Earned ©. Dividends i Uneamed Fees ‘The following accounts were taken from the Adjusted Trial Balance columns of the work sheet: Accumulated Depreciation P 3,000 Fees Eamed 20,000 Depreciation Expense 500 Insurance Expense 2,000 Prepaid Rent 4,000 Supplies 500 Net income for the period is: a PLSS00 b. P8.000 ©. PLS,00045, 46, 47. 48, 40. 50, TESTI L d. PH,000 ‘The following accounts were taken from the Adjusted Trial Balance columns of the work sheet Accumulated Depreciation P 6,000 Fees Eamed 25,000 Depreciation Expense 1,500 Insurance Expense 2, 000 Prepaid Insurance 4, 000 Supplies 500 Supplies Expenses 4, 500 Net income for the poriod is: a PIX000 b. P7,500 ©. P8000 4. P19,000 A fiscal year: 4. ordinarily begins on the first day of a month and ends on the last day of the following, twelfth month fora busine ©. always begins should end is dotermined by the federal government on January | and endson December 31 of the same year the height of the business's annual operating eyele In the normal accounting eyele the: 4 financial statements are prepared after the adjusting entries are posted b. financial statements are prepared before the closing entries are posted ©. adjusting and closing entries are journalized after the financial statements are prepared 4. post-closing tial balance is prepared before the closing entries are posted tithe aecounting eyele of manual accounting system, the last step 8. preparing the financial statements b. journalizing the adjusting entries ©. posting the closing entri 4. preparing a post-closing trial balance Work sheets are nof usually prepared 4. during the accounting cycle of a manual accounting system b. during the accounting cycle of'a computerised system ©. unless they must be present tothe bank when applying for a loan a itt incial statements are going to be prepared by an experienced accountant Reversing entries are a. used by all entities b. simply the analysis and recording of entries inthe subsequent period & needed to correct closing entries 4 not used by all entities A reversing entry reverses a(n) a. closing entry b. transaction entry © adjusting entry d. correcting entry PROBLEM List the errors in the following trial balance. All accounts have normal balances, Hondo Auto Services, Ine, ‘Trial Balance For Month Ending. September 30, 20-- Cash 19,475 Accounts Receivable 2 Supplies 2, 000 Equipment 15,000 Prepaid Insurance 500 Accounts Payable 2,500Capital Stock 17,000 Dividends 2,000 Fees Eamed 49, 600 Salary Expense 14,500 Rent Expense 9,000 Utilities Expense 1,400 Supplies Expense 3,900 Miscellaneous. Expense 250 109 (A) What would be the new balance of the trial balance afler errors are corrected? Accounts receivable? After all adjustments have been made, but before the accounts have been closed, the following balances were taken from the led Accounts payable P 40,000 Insurance expense P 2,600 ‘Accounts receivable 54,500 Prepaid insurance 5,275 Accumulated depreciation 83,425 Rent expense 21,400 Capital Stock 20,000 Retained earnings 80,950 Cash 7,150. Salary expense 66,000 Depreciation expense 23,500 Salaries payable 150 Dividends 28,000 Service revenue 151,000 Equipment 155,000 Supplies 2,500 Supplies expense 3,500 Journalize the entries to close the appropriate accounts. 3. Presented below are a number of adjusting entries: 1)Dec 31 Printing supplies expense 20,000 Printing supplies 20,000 2) Subscription revenues 15,000 Uneamed subscription revenues 15,000 3) Insurance expense 12,000 Prepaid insurance 12,000 4) Interest receivable 500 Interest income 500 5) Bad debt expense 5,000 Allowance for bad debt 5,000 6) Salaries expense 25,000. Salaries payable 25,000 2) Rent revenues 30,000 Uneamed rent revenues 30,000 8) Depreciation expense-Equip ment 10,000 ‘Accumulated depreciation-Equipment 10,000 9) Interest expense 600 Interest payable 600 10) Rent expense 20,000 Prepaid rent 20,000 Required: Prepare the reversing entties. (Indicate “no reversing entry” iP not applicable.)