162. For each of the following accounts, indicate whether the account is shown in the income
statement or the balance sheet:
163. The adjusted trial balance for China Tea Company at December 31, 2012, is presented
below:
164. The December 31, 2012, post-closing trial balance for Strong Corporation is presented
below:
165. The following is selected financial information for Osmond Dental Laboratories for 2012
and 2013:
Osmond issued 2,000 shares of additional capital stock in 2013 for $20,000. There were no
other capital transactions. Prepare a statement of stockholders’ equity for the year ended
December 31, 2013.
166. The adjusted trial balance for Yondel Company at December 31, 2012 is presented
below:
Prepare the closing entries for Yondel Company for the year ended December 31, 2012.
167. The adjusted trial balance for China Tea Company at December 31, 2012 is presented
below:
Prepare the closing entries for China Tea Company for the year ended December 31, 2012.
168. The year-end adjusted trial balance included the following account balances: Cash,
$5,000; Equipment, $25,000; Accounts payable, $7,000; Common stock, $15,000; Retained
earnings, $6,000; Dividends, $1,000; Service revenue, $18,000; Salaries expense, $9,000; and
Utilities expense, $6,000. Prepare the post-closing trial balance.
Listed below are ten terms followed by a list of phrases that describe or characterize five of
the terms. Match each phrase with the correct term by placing the letter designating the term
in the space provided.
Terms:
a. Accrued expenses
b. Adjusted trial balance
c. Adjusting entries
d. Depreciation expense
e. Balance sheet
f. Prepaid expenses
g. Expenses
h. Post-closing trial balance
i. Income statement
j. Trial balance
169. ____ A list of accounts and their balances prepared before adjusting entries are
recorded.
170. ____ Records events that have occurred but not previously recorded.
171. ____ Represent outflows of resources incurred to generate revenues.
172. ____ Liabilities created when expenses are recognized before cash flows.
173. ____ An account that reflects an estimate.
be.
174. Describe what is meant by unearned revenues and give two examples.
175. Describe what is meant by prepaid expenses and give two examples.
176. What is an accrued expense?
Listed below are ten terms followed by a list of phrases that describe or characterize five of
the terms. Match each phrase with the correct term by placing the letter designating the term
in the space provided.
Terms:
a. Accrued expenses
b. Adjusted trial balance
c. Adjusting entries
d. Depreciation expense
e. Balance sheet
f. Prepaid expenses
g. Expenses
h. Post-closing trial balance
i. Income statement
j. Trial balance
177. ____ Financial statement showing that assets equal liabilities plus stockholders’ equity.
178. ____ Assets created before the expense is recognized.
179. ____ A list of accounts and their balances used as the source data to prepare the financial
statements.
180. ____ Financial statement that provides a measure of net income.
181. ____ A list of only permanent accounts and their balances prepared to prove that total
debits equal total credits.
182. What is the difference between permanent accounts and temporary accounts and why
does an accounting system have both types of accounts?
183. What are the purposes of closing entries?
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