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5-62
117.
Preparation of financial statements
Using the Adjusted Trial Balance shown below, prepare (a) an Income Statement and (b) a
Statement of Retained Earnings for All Star Repairs.
118.
Indicate which of the following accounts will be closed to Income Summary at year-end.
(a) Cash
(b) Office Supplies Expense
(c) Unexpired Insurance
(d) Unearned Revenue
(e) Dividends
(f) Depreciation Expense
(g) Income Taxes Payable
(h) Accumulated Depreciation
119.
Given the following information for the Maple Tree Co. for the year ended December 31,
2014, prepare a Statement of Retained Earnings.
120.
Adequate disclosure
(a) Briefly explain what is meant by the principle of adequate disclosure.
(b) How does professional judgment enter into the application of the principle of adequate
disclosure?
(c) List 5 types of information that a publicly-held corporation generally would be required
to provide according to the concept of adequate disclosure.
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121.
Closing entries
An Adjusted Trial Balance for Tiger Inc., at December 31 appears below.
Prepare journal entries to close the accounts. Use four entries to: (1) close the revenue
account, (2) close the expense accounts, (3) close the Income Summary account, and (4)
close the Dividends account.
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122.
Adjustments and closing process--basic entries
Selected ledger accounts used by Goldstone Advertising Inc., are listed along with
identifying numbers. Following this list of account numbers and titles in a series of
transactions, you are required to indicate the proper accounts to be debited and credited
for each transaction.
