Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
174. Beachside Realty rents condominiums and furnishings. It’s adjusted trial balance at December 31, 2011,
is as follows:
Debit Balances
Credit Balances
Cash
1,500
Accounts Receivable
2,000
Interest Receivable
100
Prepaid Insurance
1,600
Notes Receivable (long-term)
2,800
Equipment
15,000
Accumulated Depreciation
1,500
Accounts Payable
1,400
Accrued Expenses Payable
2,920
Income Taxes Payable
1,700
Unearned Rental Fees
500
Capital Stock
3,000
Retained Earnings
5,200
Dividends
2,000
Rental Fees Earned
41,000
Furniture Rental Revenue
1,200
Interest Revenue
100
Wages Expense
19,000
Depreciation Expense
1,800
Utilities Expense
320
Insurance Expense
700
Maintenance Expense
9,000
Income Tax Expense
2,700
58,520
58,520
Prepare the entry required to close the revenue accounts at the end of the period.
175. Beachside Realty rents condominiums and furnishings. It’s adjusted trial balance at December 31, 2011,
is as follows:
Debit Balances
Credit Balances
Cash
1,500
Accounts Receivable
2,000
Interest Receivable
100
Prepaid Insurance
1,600
Notes Receivable (long-term)
2,800
Equipment
15,000
Accumulated Depreciation
1,500
Accounts Payable
1,400
Accrued Expenses Payable
2,920
Income Taxes Payable
1,700
Unearned Rental Fees
500
Capital Stock
3,000
Retained Earnings
5,200
Dividends
2,000
Rental Fees Earned
41,000
Furniture Rental Revenue
1,200
Interest Revenue
100
Wages Expense
19,000
Depreciation Expense
1,800
Utilities Expense
320
Insurance Expense
700
Maintenance Expense
9,000
Income Tax Expense
2,700
58,520
58,520
Prepare the entry required to close the expense accounts at the end of the period.
176. Beachside Realty rents condominiums and furnishings. It’s adjusted trial balance at December 31, 2011,
is as follows:
Debit Balances
Credit Balances
Cash
1,500
Accounts Receivable
2,000
Interest Receivable
100
Prepaid Insurance
1,600
Notes Receivable (long-term)
2,800
Equipment
15,000
Accumulated Depreciation
1,500
Accounts Payable
1,400
Accrued Expenses Payable
2,920
Income Taxes Payable
1,700
Unearned Rental Fees
500
Capital Stock
3,000
Retained Earnings
5,200
Dividends
2,000
Rental Fees Earned
41,000
Furniture Rental Revenue
1,200
Interest Revenue
100
Wages Expense
19,000
Depreciation Expense
1,800
Utilities Expense
320
Insurance Expense
700
Maintenance Expense
9,000
Income Tax Expense
2,700
58,520
58,520
Prepare the closing entry required to transfer the income or loss at the end of the period.
177. Beachside Realty rents condominiums and furnishings. It’s adjusted trial balance at December 31, 2011,
is as follows:
Debit Balances
Credit Balances
Cash
1,500
Accounts Receivable
2,000
Interest Receivable
100
Prepaid Insurance
1,600
Notes Receivable (long-term)
2,800
Equipment
15,000
Accumulated Depreciation
1,500
Accounts Payable
1,400
Accrued Expenses Payable
2,920
Income Taxes Payable
1,700
Unearned Rental Fees
500
Capital Stock
3,000
Retained Earnings
5,200
Dividends
2,000
Rental Fees Earned
41,000
Furniture Rental Revenue
1,200
Interest Revenue
100
Wages Expense
19,000
Depreciation Expense
1,800
Utilities Expense
320
Insurance Expense
700
Maintenance Expense
9,000
Income Tax Expense
2,700
58,520
58,520
Prepare the entry required to close the dividends account at the end of the period.
178. Each of the following transactions for Morrison Company requires an adjusting entry, which if omitted,
will overstate or understate assets, liabilities, stockholders’ equity, revenues, expenses, or net income. Indicate
the amount and direction of the misstatement that would result if the end of period adjusting entry suggested by
the transaction was omitted. Place your results in the table following the transactions and use (+) for overstate,
(-) for understate, and (NE) for no effect.
1. Morrison purchased supplies on December 1 for $900. On December 31, $350 of supplies were on hand.
2. Prepaid insurance had a debit balance of $5,400 on December 1, which represented a prepayment for 2 years
of insurance.
3. The unearned rent revenue account has a credit balance of $390 on December 1, which represents 3 months
rent.
Transaction
Assets
Liabilities
Stockholders’ Equity
Revenues
Expenses
Net Income
1.
2.
3.
179. The end-of-period spreadsheet (work sheet) 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 work sheet, what is the amount
of net income or net loss?
180. Identify which of the following accounts should be closed with a debit or a credit to Income Summary at
the end of the fiscal year. If it is not closed to Income Summary, mark as n/a.
1. Utilities Payable
2. Utilities Expense
3. Supplies
4. Supplies Expense
5. Fees Earned
6. Unearned Fees
7. Accounts Receivable
8. Dividends
9. Capital Stock
10. Accumulated Depreciation - Equipment
11. Depreciation Expense - Equipment
12. Equipment
13. Prepaid Insurance
14. Insurance Expense
15. Retained Earnings
181. The balances for the accounts listed below appeared in the Adjusted Trial Balance columns of the work
sheet. Indicate whether each balance should be extended to (a) the Income Statement columns or (b) the
Balance Sheet columns.
(1)
Salaries Payable
(7)
Retained Earnings
(2)
Fees Earned
(8)
Equipment
(3)
Accounts Payable
(9)
Accounts Receivable
(4)
Capital Stock
(10)
Accumulated Depreciation
(5)
Supplies Expense
(11)
Salary Expense
(6)
Unearned Rent
(12)
Depreciation Expense
182. Indicate whether each of the following would be reported in the financial statements as a(n) (a) current
asset, (b) current liability, (c) revenue, or (d) expense:
(1)
Supplies
(5)
Supplies Expense
(2)
Unearned Fees
(6)
Prepaid Insurance
(3)
Prepaid Advertising
(7)
Accounts Payable
(4)
Advertising Expense
(8)
Fees Earned
183. The following accounts were taken from the Adjusted Trial Balance columns of the work sheet for the year
ended April 30, 2011, for Finnegan Co.:
Accumulated Depreciation
$ 32,000
Fees Earned
78,000
Depreciation Expense
7,250
Dividends
5,000
Rent Expense
34,000
Prepaid Insurance
6,000
Supplies
400
Supplies Expense
1,800
Insurance Expense
2,000
Prepare an income statement.
184. The following revenue and expense account balances were taken from the Income Statement columns of
the work sheet for Fraser Services Co. for the year ended December 31, 2011:
Depreciation Expense
$ 4,950
Insurance Expense
2,900
Miscellaneous Expense
1,200
Rent Expense
24,000
Service Revenue
92,500
Supplies Expense
3,150
Utilities Expense
5,000
Wages Expense
63,750
Prepare an income statement.
185. The following data were taken from the Balance Sheet columns of the work sheet for April 30, 2011 for
Mackenzie Company:
Accumulated Depreciation—Trucks
$42,400
Prepaid Rent
6,800
Supplies
850
Unearned Fees
7,310
Trucks
49,300
Cash
3,400
Capital Stock
4,000
Retained Earnings
?
Prepare a classified balance sheet.
186. Indicate whether each of the following would be reported in the section of financial statements identified
as (a) current assets, (b) property, plant, and equipment, (c) current liabilities, (d) revenues, or (e) expenses:
(1)
Automobile
(2)
Accumulated depreciation
(3)
Rent expense
(4)
Fees earned
(5)
Salaries payable
(6)
Prepaid rent
(7)
Store supplies
(8)
Advertising expense
(9)
Unearned rent
187. The following balance sheet contains errors.
Brock Morton Services Co.
Balance Sheet
For the Year Ended December 31, 2011
Assets
Liabilities
Current assets:
Current liabilities:
Cash
$ 7,170
Accounts receivable
$ 10,000
Accounts payable
7,500
Accum. depr.—building
12,525
Supplies
2,590
Accum. depr.—equipment
7,340
Prepaid insurance
800
Net income
11,500
Land
24,000
Total current assets
$ 42,060
Total liabilities
$ 41,365
Stockholders’ Equity
Property, plant, and equip:
Wages payable
$ 1,500
Building
$ 43,700
Capital stock
25,000
Equipment
29,250
Retained earnings
63,645
Total property, plant,
and equipment
$ 72,950
Total stockholders’ equity
$ 90,145
Total liabilities and
Total assets
$131,510
stockholders’ equity
$131,510
(a) List the errors in the balance sheet above and (b) prepare a corrected balance sheet.
188. The following is the adjusted trial balance for Nadia Company prepared at the end of Nadia’s fiscal year.
Nadia Company
Adjusted Trial Balance
December 31, 2014
Cash
5,130
Accounts Receivable
3,300
Prepaid Expenses
420
Equipment
12,400
Accumulated Depreciation
2,200
Accounts Payable
700
Notes Payable - Due on June 30, 2015
3,070
Capital Stock
2,000
Retained Earnings
11,000
Dividends
700
Fees Earned
10,930
Wages Expense
2,450
Rent Expense
1,900
Utilities Expense
1,475
Depreciation Expense
1,150
Miscellaneous Expense
975
Totals
29,900
29,900
Prepare an income statement, retained earnings statement, and classified balance sheet.
189. Prepare an income statement and a retained earnings statement for the month ended August 31, 2014, from
the following T accounts of Marley Company.
Prepaid
Insurance
Account
s
Receiva
ble
Unearned
Revenues
Wages
Payable
1,100
5,400
1,400
425
135
1,600
400
Retained
Earnings
Divide
nds
Income
Summary
Fees Earned
6,500
3,200
9,775
7,775
5,780
3,200
3,995
1,600
3,200
5,730
400
9,775
Wages
Expense
Rent
Expens
e
Insurance
Expense
Utilities
Expense
2,200
990
285
95
425
990
285
95
2,625
190. Prepare an income statement and a retained earnings statement for the month ended September 30, 2011,
from the T accounts below of Carson Company.
Prepaid
Insurance
Accou
nts
Receiv
able
Unearned
Revenues
Wages
Payable
1,400
1,600
1,200
225
80
500
350
Retained
Earnings
Divide
nds
Income
Summary
Fees Earned
6,800
2,400
4,150
3,300
610
2400
4,760
500
2,400
610
350
4,150
Wages
Expense
Rent
Expens
e
Insurance
Expense
Utilities
Expense
3,200
1,130
80
125
225
1,130
80
125
3,425
191. Selected ledger accounts appear below for Fulton Surveying Services for 2014.
Retained
Earnings
Dividends
12/31
25,000
1/1
20,000
3/31
12,000
12/31
25,000
12/31
48,000
12/22
13,000
Income
Summary
12/31
19,000
12/31
67,000
12/31
48,000
Prepare a retained earnings statement.
192. On the basis of the following data taken from the Adjusted Trial Balance columns of the work sheet for the
year ended March 31 for Boles Athletic Company, journalize the four closing entries.
Cash
$ 30,000
Accounts Receivable
45,200
Supplies
5,000
Equipment
169,900
Accumulated Depreciation
$ 32,000
Accounts Payable
12,500
Capital Stock
20,000
Retained Earnings
51,600
Dividends
47,000
Fees Earned
510,000
Salary Expense
244,500
Rent Expense
48,000
Depreciation Expense
25,000
Supplies Expense
9,500
Miscellaneous Expense
2,000
$626,100
$626,100
