Chapter 04 – The Accounting Cycle
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Debit
Credit
Debit
Credit
Debit
Credit
Cash
36,000
Prepaid Insurance
12,000
Accounts Receivable
56,000
Supplies
12,000
Equipment
60,000
Accumulated Depreciation
12,000
Unearned Revenue
20,000
Accounts Payable
32,000
Wages Payable
Common Stock
84,000
Dividends
4,000
Service Revenue
80,000
Advertising Expense
28,000
Wage Expense
20,000
Insurance Expense
Supplies Expense
Depreciation Expense
______
______
Totals
228,000
228,000
ANSWER:
GENERAL JOURNAL
Page 1
Date
Description
Post.
Ref.
Debit
Credit
Adjusting Entries
(a)
Depreciation Expense
1,000
Accumulated
Depreciation
1,000
(b)
Wage Expense
2,000
Wages Payable
2,000
(c)
Supplies Expense
4,000
Supplies
4,000
(d)
Unearned Revenue
15,000
Service Revenue
15,000
(e)
Insurance Expense
3,000
Prepaid Insurance
3,000
POINTS:
DIFFICULTY:
QUESTION TYPE:
HAS VARIABLES:
LEARNING OBJECTIVES:
ACCREDITING STANDARDS:
Chapter 04 – The Accounting Cycle
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Page 96
Depreciation
Expense
8,500
_____
Totals
79,800
79,800
Net Income (Loss)
ANSWER:
Danilo Enterprises
End-of-Period Spreadsheet
For the Year Ended December 31
Adjusted Trial
Balance
Income
Statement
Balance Sheet
Account Title
Debit
Credit
Debit
Credit
Debit
Credit
Cash
14,500
14,500
Accounts
Receivable
7,500
7,500
Supplies
500
500
Equipment
20,500
20,500
Accum.Depr.—
Equip.
15,000
15,000
Accounts
Payable
9,500
9,500
Wages Payable
3,060
3,060
Common Stock
18,240
18,240
Dividends
1,000
1,000
Fees Earned
34,000
34,000
Wages Expense
18,000
18,000
Rent Expense
9,300
9,300
Depreciation
Expense
8,500
_____
8,500
Totals
79,800
79,800
35,800
34,000
44,000
45,800
Net Loss
1,800
1,800
35,800
35,800
45,800
45,800
POINTS:
1
DIFFICULTY:
Bloom’s: Applying
Moderate
QUESTION TYPE:
Subjective Short Answer
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.04-APP1 – LO: 04-APP1
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.05 – Accounting Cycle
ACCT.ACBSP.APC.08 – Closing Entries
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 6:18 PM
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Page 98
8. Supplies Expense
ANSWER:
1. Balance Sheet column
2. Balance Sheet column
3. Income Statement column
4. Balance Sheet column
5. Income Statement column
6. Balance Sheet column
7. Balance Sheet column
8. Income Statement column
POINTS:
1
DIFFICULTY:
Bloom’s: Remembering
Easy
QUESTION TYPE:
Subjective Short Answer
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.04-APP1 – LO: 04-APP1
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.05 – Accounting Cycle
ACCT.ACBSP.APC.08 – Closing Entries
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 6:18 PM
DATE MODIFIED:
10/16/2017 4:41 PM
199. The end-of-period spreadsheet for the current year for Jamal Company shows Balance Sheet columns with a debit
total of $630,430 and a credit total of $614,210. This is before the amount for net income or net loss has been included. In
preparing the income statement from the end-of-period spreadsheet, what is the amount of net income or net loss?
ANSWER:
Net income of $16,220
POINTS:
1
DIFFICULTY:
Bloom’s: Applying
Easy
QUESTION TYPE:
Subjective Short Answer
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.04-APP1 – LO: 04-APP1
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.05 – Accounting Cycle
ACCT.ACBSP.APC.08 – Closing Entries
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 6:18 PM
DATE MODIFIED:
10/16/2017 4:41 PM
200. The end-of-period spreadsheet for the current year for Jamal Company shows Balance Sheet columns with a debit
total of $614,210 and a credit total of $630,430. This is before the amount for net income or net loss has been included. In
preparing the income statement from the work sheet, what is the amount of net income or net loss?
ANSWER:
Net loss of $16,220
POINTS:
1
DIFFICULTY:
Bloom’s: Applying
QUESTION TYPE:
Subjective Short Answer
HAS VARIABLES:
False