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The end of the period account balances after adjustments of Dixon Cleaners and
Laundry are as follows:
Instructions
Prepare the end of the period closing entries for Dixon Cleaners and Laundry. You may
omit journal entry explanations.
Answer:
A prior period adjustment is reported as an adjustment of the beginning balance of
Retained Earnings.
Answer:
On September 1, Joe's Painting Service borrows $150,000 from National Bank on a
4-month, $150,000, 6% note. What entry must Joe's Painting Service make on
December 31 before financial statements are prepared?
Answer:
The accounts receivable turnover is computed by dividing total sales by the average net
receivables during the year.
Answer:
Prepare the necessary correcting entry for each of the following.
a> A collection on account of $350 from a customer was credited to Accounts
Receivable $530 and debited to Cash $530.
b> The purchase of supplies on account for $310 was recorded as a debit to Equipment
$310 and a credit to Accounts Payable $310.
Answer:
Revenues are a subdivision of retained earnings.
Answer:
The cost of demolishing an old building on land that has been acquired so that a new
building can be constructed should be charged to the ______________ account.
Answer:
A liability'”revenue account relationship exists with an unearned rent revenue adjusting
entry.
Answer:
An adjusting entry recording accrued salaries for a period indicates that Salaries
Expense has been ________________ but has not yet been ________________ or
recorded.
Answer:
