Chapter 05 – The Accounting Cycle: Reporting Financial Results
Financial and Managerial Accounting, 17e 5-7
CHAPTER 5 NAME #
10-MINUTE QUIZ C SECTION
The accountant for Successful Consulting prepared the following “Adjusted” Trial Balance at December
31, 20__ after one year of operations:
Debit
Credit
Cash …………………………………………………………………….
$ 5,700
Accounts Receivable………………………………………………
4,500
Unexpired Insurance ………………………………………………
2,100
Office Equipment …………………………………………………..
18,300
Accumulated Depreciation: Office Equipment ………….
$ 600
Unearned Consulting Fees ………………………………………
3,600
Capital Stock …………………………………………………………
15,300
Retained Earnings, January 1, 20__ …………………………
2,700
Dividends ……………………………………………………………..
1,100
Consulting Fees Earned ………………………………………….
21,200
Salaries Expense ……………………………………………………
6,600
Utilities Expense ……………………………………………………
1,800
Rent Expense ………………………………………………………..
2,700
Depreciation Expense …………………………………………….
600
______
$43,400
$43,400
Prepare an After-Closing Trial Balance.
Chapter 05 – The Accounting Cycle: Reporting Financial Results
CHAPTER 5 NAME #
10-MINUTE QUIZ D SECTION
DAVID‘S, INC.
Trial Balance
December 31
Debit
Credit
Cash …………………………………………………………………….
$ 21
Accounts Receivable………………………………………………
39
Equipment …………………………………………………………….
175
Accounts Payable …………………………………………………..
$ 27
Capital Stock …………………………………………………………
117
Retained Earnings ………………………………………………….
39
Dividends ……………………………………………………………..
13
Service Revenue ……………………………………………………
203
Salaries Expense ……………………………………………………
95
Depreciation ………………………………………………………….
27
Advertising Expense ………………………………………………
16
____
$386
$386
Prepare the closing entries.
Chapter 05 – The Accounting Cycle: Reporting Financial Results
Financial and Managerial Accounting, 17e 5-9
SOLUTIONS TO CHAPTER 5 10-MINUTE QUIZZES
QUIZ A
DR
CR
Consulting Fees Earned ………………………………………….
28,150
Income Summary
28,150
To close the revenue account.
Income Summary
14,820
Salaries Expense ……………………………………
8,850
Utilities Expense ……………………………………
2,130
Rent Expense ………………………………………..
3,390
Depreciation Expense …………………………….
450
To close the expense accounts.
Income Summary …………………………………………………..
13,330
Retained Earnings ………………………………….
13,330
To close the income summary account.
Retained Earnings ………………………………………………….
1,150
Dividends ……………………………………………..
1,150
To close the dividends account.
Learning Objective: 4
QUIZ B
Learning Objective: 4, 5
QUIZ C
Debit
Credit
Cash …………………………………………………………………….
$ 5,700
Accounts Receivable………………………………………………
4,500
Unexpired Insurance ………………………………………………
2,100
Office Equipment …………………………………………………..
18,300
Accumulated Depreciation: Office Equipment ………….
$ 600
Unearned Consulting Fees ………………………………………
3,600
Capital Stock …………………………………………………………
15,300
Retained Earnings, December 31, 20__ …………………….
______
11,100
$30,600
$30,600
Learning Objective: 5
Chapter 05 – The Accounting Cycle: Reporting Financial Results
QUIZ D
DR
CR
Service Revenue ……………………………………………………
203
Income Summary
203
To close the revenue account.
Income Summary
138
Salaries Expense ……………………………………
95
Depreciation Expense …………………………….
27
Advertising Expense
16
To close the expense accounts.
Income Summary …………………………………………………..
65
Retained Earnings ………………………………….
65
To close the income summary account.
Retained Earnings ………………………………………………….
13
Dividends ……………………………………………..
13
To close the dividends account.
Chapter 05 – The Accounting Cycle: Reporting Financial Results
Assignment Guide to Chapter 5
Brief
Exercises
Exercises
Problems
Cases
Net
1 – 10
1 – 15
1
2
3
4
5
6
7
8
1
2
3
4
Time estimate (in minutes)
<10
<15
40
40
40
25
30
60
40
20
25
30
5
15
Difficulty rating
E
E
M
M
M
S
M
S
M
E
S
M
E
E
Learning Objectives:
1, 2, 3
1, 2, 3, 12, 13
√
1. Prepare an income statement, a statement
of retained earnings, and a balance sheet.
2. Explain how the income statement and the
statement of retained earnings relate to the
balance sheet.
1, 2, 3
1, 2, 3, 4, 5, 7,
8, 9, 12, 13, 14
√
3. Explain the concept of adequate disclosure.
1, 6, 14, 15
√
√
4. Explain the purposes of closing entries;
prepare these entries.
4, 5, 6
1, 4, 5, 7, 8, 9
√
5. Prepare an after-closing trial balance.
7
1, 4, 5
6. Use financial statement information to
evaluate profitability and liquidity.
8
1, 2, 3, 10, 11,
15
√
√
7. Explain how interim financial statements
are prepared in a business that closes its
accounts only at year-end.
9
1, 12, 13
*8. Prepare a worksheet and explain its uses.
10
√