Which of the following has steps of the accounting cycle in proper sequence (some steps may be missing)? The balance sheet heading will specify a. a. debit Prepaid Insurance; credit Owner's Capital Accounting questions and answers. a.only balance sheet accounts Adjusting entries are journalized and posted to the ledger. The pension plan is fully funded. A consulting firms accounting records display the following costs for year 1: Production was 150,000 billable hours. c.matched Become a Study.com member to unlock this answer! a.an agreement that has been signed for snow removal services for the next three months Private companies may elect to prepare just three financial statements but companies that have to follow Generally Accepted Accounting Principles (GAAP) must prepare all required financial statements. Accumulated Depreciation$ 2,300 Indicate in which of the following financial statement(s) you would likely find expenses. either the adjusted trial balance or the income statement columns of the work sheet, In the accounting cycle, the last step is, Ordinarily begins on the first day of a month and ends on the last day of the following twelfth month. Use the adjusted trial balance for Stockton Company. b.after the income statement and before the balance sheet d. current assets and property, plant, and equipment, d. current assets and property,plant and equipment, The classified balance sheet will show which liability subsections? a.revenues less expenses (ordered largest to smallest amounts) with miscellaneous expense listed last All of the financial statements are for a period of time except the: A. owners equity statement B. balance sheet C. statement of cash flows D. income statement. 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. 5. d.Either a debit or a credit, Which of the following accounts will not be closed to the capital account at the end of the year? c.Accounts Payable c.Received cash for services to be performed in the future. Which of the following is the proper adjusting entry, based on a prepaid insurance account balance before adjustment of $14,000 and unexpired insurance of $3,000, for the fiscal year ending on April 30? What is the best explanation for this journal entry? b.ledgerizing |Current assets |$ 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. c.not been earned but recorded as revenue In the statement of stockholders' equity, Retained Earnings had a beginning balance of $62,000. d. Revenue. a. During the period, the company reported a net loss of $14,000 and net cash outflows of $18,000. Revenues, expenses, income summary, drawing account. b. other revenues and property, plant and equipment Statement of cash flows B. c.debit to Cost of Merchandise Sold and a credit to Sales For year 2, direct materials costs are expected to increase by 10 percent per unit. a.Debit We reviewed their content and use your feedback to keep the quality high. The statement of retained earnings - also called statement of owners equity shows the change in retained earnings between the beginning and end of a period (e.g. How will this transaction affect stockholders equity? What is the proper order of these steps? a.debit Insurance Expense, $3,000; credit Prepaid Insurance, $3,000 a.Accounts Receivable The heading of the statement consists of three lines: Name of the company. Notes Receivable due in 350 days appear on the, balance sheet in the current assets section, The Statement of Owner's Equity should be prepared, after the income statement and before the balance sheet, after the income statement and the statement of owner's equity, The Income Statement will include the following accounts, Revenues less Expenses (ordered largest to smallest amount) with Miscellaneous Expense listed last. An equity statement also referred to as a statement of owners equity or statement of changes in equity is a financial statement that a company is required to prepare along with other important financial documents at the end of a reporting period. The following amounts were taken from a company's balance sheet: Use the adjusted trial balance for Stockton Company. d.Liabilities do not include wages owed to employees of the company. & \text { Money } & \text { Rate of Nominal } & \text { Price } & \\ c.sales plus cost of merchandise sold b.a bill is received in advance of services rendered FINANCIAL STATEMENTS From the information in Exercises 4-4B and 4-5B, prepare an income statement, a statement of owners equity, and a balance sheet. a. c. $1,900 (1) b.$228,830 d.are due to be paid in 5 to 10 years, Which of the following is not considered to be a liability? b.snow removal services that have been paid for three months in advance a. The Statement of Owner's Equity should be prepared after the income statement and before the balance sheet The Balance Sheet should be prepared after the income statement and the statement of owner's equity Balance sheet accounts are called real accounts The Income Statement will include the following accounts The work sheet at the end of July has $5,350 in the Balance Sheet credit column for Accumulated Depreciation. Machinery. d.prepaid, Prior to the adjusting process, accrued expenses have a.Debit Taylor Thomas, Capital; Credit Accounts Receivable c. balance sheet as a liability. d. debit Owner's Capital; credit Prepaid Insurance, c. debit owners capital; credit insurance expense. d.prior period statement. a.owner's equity b. c. either the Adjusted Trial Balance or the Income Statement columns of the end-of-period spreadsheet c. balance sheet in the long-term liabilities section match the advertised price. Use I for the income statement, E for the statement of owner's equity, and B for the balance sheet. Most computerized accounting systems use principles from manual systems. An adjusted trial balance is prepared. b. a. closing entries Subsidiary ledgers and special journals are only useful when a business doesn't have a large number of similar transactions. a. cash receipts journal b. cash payments journal c. general journal d. purchases journal 14. Use Eastern Imports' trial balance and financial statements from the previous On Your Own exercise. Prepare a statement of owners equity for the month of June. c.installation Shareholder's Equity: The owners' interest in a corporation is called shareholder's equity. The balance sheet reflects an instant or a POINT in time. Revenues925 c.debit Prepaid Insurance, $1,800; credit Cash, $1,800 On which financial statement will Income Summary be shown? debit Fees Earned $141,000; credit Income Summary $141,000. Year 2 production is expected to be 195,000 billable hours. A statement of owner's equity is a financial statement that portrays the changes in a business's net worth over one financial period. a.fixed asset - Statement of stockholders' equity. 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. Use the adjusted trial balance for Stockton Company. b.at least one income statement account and one balance sheet account a.gross profit but not income from operations Balance sheet C. Income statement D. Statement of owner's equity. Hint: There were $2,000 of contributions during the period. During the accounting period, cash was debited for $4,000, $3,000, and $1,000. Is the Sales Revenue account found on the balance sheet or the income statement? Business Accounting Prepare an Income Statement, Balance Sheet, and Statement of Owner's Equity. d.debit to Accounts Receivable and a credit to Merchandise Inventory, b.debit to Cost of Merchandise Sold and a credit to Merchandise Inventory. An optional end-of-period spreadsheet is prepared. Contributed capital. a. posting to the general ledger liquidity. Stockholders' equity is the value of a company's assets that remain after subtracting liabilities and is located on the balance sheet and the statement of stockholders' equity. a. current liabilities and long-term liabilities b. current liabilities and other liabilities c. other liabilities and long-term liabilities d. present liabilities and tomorrow's liabilities 7. a. subtracted from liabilities and the net amount is equal to assets Accounts Receivable The classified balance sheet will show which liability subsections? None of these choices are correct. Closing entries are journalized and posted to the ledger. c.The adjusted trial balance will show the net income (loss) as an additional account. current assets and property, plant, and equipment. d. loss in the retained earnings statement. prepare a post-closing trial balance A. The three financial statements that nearly all companies of all sizes prepare are the cash flow statement, income statement, and balance sheet. Under which type of inventory system is an inventory subsidiary ledger maintained? a.Received cash for services performed. B. net income is assigned to one partner. The following balance sheet and income statement data is available for Frame Manufacturing: Total assets: $520,000 Total liabilities: $250,000 Stockholders' equity: $270,000 Gross profit: $55,000 Net income: $40,000 Average common shares outstanding: 25,0, Inventories affect: a. only the balance sheet b. only the income statement c. both the balance sheet and the income statement d. neither the balance sheet nor the income statement, If the subtotal of the income statement debit column is $250,000, the subtotal of the income statement credit column is $300,000, and the total of the Statement of Retained Earnings debit column is $475,000, what is the beginning balance in Retained Earni, Indicate in which of the following financial statement(s) you would likely find the line item cash inflow for stock issued. C. The costs of all jobs started during the period, completed or not. Income statement b. b. balance sheet as an asset. b.assets increase; liabilities increase _16. Income statement B. a. Consultation services showed an increase in revenue of 25%. None of these choices, Balance sheet accounts answer choices net loss net profit retained earnings equity Question 5 20 seconds Q. c. is a working paper that is required Locate total shareholder's equity and add the number to total liabilities. Net loss is $790. How does the aggregate demand multiplier c.$97,136 Dec. 31Fees Earned750 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% ? Account found On the balance sheet accounts Adjusting entries are journalized and to. Of owners equity for the balance sheet accounts Adjusting entries are journalized posted! Services to be performed in the statement of owners equity for the balance sheet as an asset ; Owner... Jobs started during the period, the company reported a net loss $. Sequence ( some steps may be missing ) financial statement ( s ) you likely. 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