Page 1

ACC 290 Week 1 Apply Connect Assignment (100% Correct) (With Excel File) FOR MORE CLASSES VISIT www.acc290genius.com

1

On July 1, Tommy Wrigley established Wrigley Home Appraisal Services, a firm that provides expert residential appraisals and represents clients in home appraisal hearings.

TRANSACTIONS

The owner invested $100,000 in cash to begin the business. Paid $20,250 in cash for the purchase of equipment. Purchased additional equipment for $15,200 on credit. Paid $12,500 in cash to creditors. The owner made an additional investment of $25,000 in cash. Performed services for $9,750 in cash. Performed services for $7,800 on account.


Paid $6,000 for rent expense. Received $5,500 in cash from credit clients. Paid $7,550 in cash for office supplies. The owner withdrew $12,000 in cash for personal expenses. Record in equation form the changes that occur in assets, liabilities, and owner’s equity for the above transactions.

Analyze:

What is the ending balance of cash after all transactions have been recorded?

2

The following equation shows the transactions of Cotton Cleaning Service during May. The business is owned by Taylor Cotton.

Required:


Analyze each transaction carefully. Prepare an income statement and a statement of owner’s equity for the month. Prepare a balance sheet for May 31, 2019.

ACC 290 Week 1 Apply Connect Assignment

Complete the Week 1 Assignment in Connect.

Note: You have only 1 attempt available to complete assignments.

1

Harold Joseph is a painting contractor who specializes in painting commercial buildings. At the beginning of June, his firm’s financial records showed the following assets, liabilities, and owner’s equity.

Cash $

60,200


Accounts Receivable

Office Furniture

Auto

15,800

35,000

22,700

Accounts Payable

10,400

Harold Joseph, Capital

Revenue

56,200

Expenses

23,600

TRANSACTIONS

90,700


Performed services for $6,600 on credit. Paid $1,620 in cash for new office chairs. Received $10,400 in cash from credit clients. Paid $800 in cash for telephone service. Sent a check for $2,900 in partial payment of the amount due creditors. Paid salaries of $8,900 in cash. Sent a check for $1,040 to pay electric bill. Performed services for $9,700 in cash. Paid $2,270 in cash for auto repairs. Performed services for $11,700 on account. Enter the above transactions in to the following accounting equations.

Analyze:

What is the amount of total assets after all transactions have been recorded?

2


The following equation shows the transactions of Cotton Cleaning Service during May. The business is owned by Taylor Cotton.

Required:

Analyze each transaction carefully. Prepare an income statement and a statement of owner’s equity for the month. Prepare a balance sheet for May 31, 2019. ----------------------------------------------------------------------------------------ACC 290 Week 1 Apply: Connect® Exercise FOR MORE CLASSES VISIT www.acc290genius.com

ACC 290 Week 1 Apply: Connect® Exercise

Review the Knowledge Check in preparation for this assignment.

Complete the Week 1 Exercise in Connect®.


Note: You have only one attempt available to complete this assignment.

Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date.

The form of a business organization that is not affected by the withdrawal or death of an owner and can continue indefinitely is the

Multiple Choice

corporation.

sole proprietorship.

nonprofit organization.

partnership.

When the owner invests equipment in a business,


Multiple Choice

assets increase and owner’s equity decreases.

assets and owner’s equity increase.

assets and revenue increase.

liabilities decrease and owner’s equity increases.

The Statement of Owner’s Equity is calculated as follows:

Multiple Choice

beginning capital + net income + withdrawals + additional investments = ending capital

beginning capital + net loss − withdrawals + additional investments = ending capital


beginning capital + net income − withdrawals + additional investments = ending capital

beginning capital + net loss + withdrawals + additional investments = ending capital

The Financial Accounting Standards Board is responsible for

Multiple Choice

auditing financial statements.

developing generally accepted accounting principles.

establishing accounting systems for businesses.

making recommendations to the Securities and Exchange Commission.

The Balance Sheet heading includes each of the following except:


Multiple Choice

firm’s name.

title of the report.

date of the report.

firm’s address.

Tax planning includes

Multiple Choice

auditing tax returns.

correcting tax returns.

preparing tax returns.


suggesting actions to reduce tax liability.

Which of the following equations is the Fundamental Accounting Equation?

Multiple Choice

Assets – Liabilities = Owner’s Equity

Assets – Owner’s Equity = Liabilities

Assets + Liabilities = Owner’s Equity

Assets = Liabilities + Owner’s Equity

Tax accounting involves tax compliance and

Multiple Choice


tax configuration.

tax planning.

tax obfuscation.

tax evaluation.

Amounts that a business must pay in the future are known as:

Multiple Choice

capital.

liabilities.

assets.

expenses.


Identify the form of business that is considered a separate legal entity.

Multiple Choice

a limited liability partnership

a sole proprietorship

a partnership

a corporation

Which of the following is NOT a service of public accounting firms?

Multiple Choice

management advisory services


auditing

investment services

tax accounting

Which financial statement is reported as of a specific date?

Multiple Choice

Income Statement

Statement of Changes in Financial Position

Balance Sheet

Statement of Owner’s Equity

Identify the type of accounts that would appear on a firm’s income statement


Multiple Choice

revenues and expenses.

liabilities and expenses.

assets and liabilities.

assets and revenues.

A company issues periodic reports called

Multiple Choice

summaries.

financial statements.

tax returns.


audits.

Managerial accounting is

Multiple Choice

private accounting.

government accounting.

tax accounting.

public accounting.

Which of the following is NOT an area in which accountants usually practice?

Multiple Choice


Public Accounting

Governmental Accounting

Industrial Accounting

Managerial (Private) Accounting

All financial statements submitted to the SEC by publicly owned corporations must include an auditor’s report prepared by

Multiple Choice

an independent certified public accountant.

anyone in the accounting department.

the firm’s managerial accountant.

an internal auditor.


The group of accounting educators who offer their opinions about proposed FASB statements, after research has been done to determine the possible effects on financial reporting and the economy, is

Multiple Choice

the FCC.

the AICPA.

the SEC.

the AAA.

If the income statement covered a six-month period ending on November 30, 2019, the third line of the income statement heading would read:

Multiple Choice


Month Ended November 30, 2019.

November 30, 2019.

Six-month Period Ended November 30, 2019.

Month of November, 2019.

Which of the following is an example of an expense:

Multiple Choice

an owner withdrawal for personal use.

the receipt of cash from a credit customer.

the payment of a creditor on account.

the payment of the monthly utility bill.


Which financial statement is a representation of the accounting equation?

Multiple Choice

Balance Sheet

Income Statement

Statement of Owner’s Equity

Profit and Loss Statement

Which of the following is NOT a type of information communicated by the financial statements?

Multiple Choice

how much the business owes others


what types of assets business owns

how long the business has been in operation

whether or not the business is profitable

When the owner writes a company check to pay the company’s electric bill,

Multiple Choice

expenses increase and owner’s equity increases.

assets and owner’s equity decrease.

assets and liabilities decrease.

assets and owner’s equity increase.


The rent paid for future months is a(n):

Multiple Choice

liability.

expense.

revenue.

asset.

When the owner withdraws cash for personal use,

Multiple Choice

assets decrease and owner’s equity increases.

owner’s equity decreases and revenue decreases.


assets decrease and owner’s equity decreases.

assets decrease and expenses increase.

Choose the option below that reflects the correct order in which to prepare the three financial statements

Multiple Choice

Income Statement; Statement of Owner’s Equity; Balance Sheet.

Balance Sheet; Income Statement; Statement of Owner’s Equity.

Income Statement; Balance Sheet; Statement of Owner’s Equity.

Statement of Owner’s Equity; Balance Sheet; Income Statement.

Revenue by definition is:

Multiple Choice


an amount a business must pay in the future.

the payment of amounts owed to creditors.

amounts earned from the sale of goods or services.

the collection of amounts owed by customers.

Owners are not personally responsible for the debts of the business if the form of business organization is a

Multiple Choice

partnership.

sole proprietorship.

corporation.


nonprofit organization.

The financial activities of a business and the financial activities of the owners should be

Multiple Choice

combined in the firm’s accounting records.

combined only if the owner wants them to be.

reported in different parts of the firm’s accounting records.

kept totally and completely separate.

Managerial accountants usually do which of the following?

Multiple Choice

audit financial statements


prepare and audit tax returns

investigate companies for possible violations of law

prepare internal reports for management

The area of accounting that involves the preparation of internal reports for a firm’s executives and the analysis of the data in these reports to aid in decision making is known as

Multiple Choice

financial accounting.

managerial accounting.

auditing.

cost accounting.


Which of the following is a true statement in regards to the International Accounting Standards Board?

Multiple Choice

The IASB deals with issues caused by the lack of uniform accounting principles existing in different countries

The IASB was created by the American Accounting Association

The IASB develops all accounting principles to be used in the United States

The IASB has the authority to audit financial statements of all US corporations

Which of the following equations is the Fundamental Accounting Equation?

Multiple Choice


Assets + Liabilities = Owner’s Equity

Assets – Owner’s Equity = Liabilities

Assets = Liabilities + Owner’s Equity

Assets – Liabilities = Owner’s Equity

Examples of assets are:

Multiple Choice

cash and accounts receivable.

equipment and revenue.

accounts receivable and rent expense.


investments by the owner and revenue.

The statement of financial position is another term for which financial statement?

Multiple Choice

Income Statement

Statement of Owner’s Equity

Balance Sheet

Trial Balance

An Income Statement is all of the following except:


Multiple Choice

a formal report of business operations.

a profit and loss statement.

a statement of revenues less withdrawals and expenses.

a statement of income and expenses. ----------------------------------------------------------------------------------------ACC 290 Week 1 Practice Connect Practice Assignment FOR MORE CLASSES VISIT www.acc290genius.com

ACC 290 Week 1 Practice Connect Practice Assignment

Complete the Week 1 Practice in Connect.

Note: You have unlimited attempts available to complete practice assignments


1

On July 1, Tommy Wrigley established Wrigley Home Appraisal Services, a firm that provides expert residential appraisals and represents clients in home appraisal hearings.

TRANSACTIONS

The owner invested $100,000 in cash to begin the business. Paid $20,250 in cash for the purchase of equipment. Purchased additional equipment for $15,200 on credit. Paid $12,500 in cash to creditors. The owner made an additional investment of $25,000 in cash. Performed services for $9,750 in cash. Performed services for $7,800 on account. Paid $6,000 for rent expense. Received $5,500 in cash from credit clients. Paid $7,550 in cash for office supplies. The owner withdrew $12,000 in cash for personal expenses.


Record in equation form the changes that occur in assets, liabilities, and owner’s equity for the above transactions.

Analyze:

What is the ending balance of cash after all transactions have been recorded?

2

On December 1, Kate Holmes opened a speech and hearing clinic. During December, her firm had the following transactions involving revenue and expenses.

Paid $3,100 for advertising.

Provided services for $2,800 in cash.

Paid $800 for telephone service.


Paid salaries of $2,600 to employees.

Provided services for $3,000 on credit.

Paid $450 for office cleaning service.

Did the firm earn a net income or incur a net loss for the period? What was the amount?

3

At the beginning of September, Selena Cantu started Cantu Wealth Management Consulting, a firm that offers financial planning and advice about investing and managing money. On September 30, the accounting records of the business showed the following information.

Prepare an income statement for the month of September 2019.


4

The fundamental accounting equations for several businesses follow. Supply the missing amounts.

5

At the beginning of September, Selena Cantu started Cantu Wealth Management Consulting, a firm that offers financial planning and advice about investing and managing money. On September 30, the accounting records of the business showed the following information.

Required:

Prepare a statement of owner’s equity for the month of September and a balance sheet for Cantu Wealth Management Consulting as of September 30, 2019.

6


Taylor Equipment Repair Service is owned by Jason Taylor.

Use the above figures to prepare a balance sheet dated February 28, 2019.

Analyze:

What is the net worth, or owner’s equity, at February 28, 2019, for Taylor Equipment Repair Service?

----------------------------------------------------------------------------------------ACC 290 Week 1 Practice: Connect® Knowledge Check FOR MORE CLASSES VISIT www.acc290genius.com

ACC 290 Week 1 Practice: Connect® Knowledge Check

Complete the Week 1 Knowledge Check in Connect®.


Note: You have unlimited attempts available to complete this practice assignment. The highest scored attempt will be recorded.

These assignments have earlier due dates, so plan accordingly.

Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date.

The form of a business organization that is not affected by the withdrawal or death of an owner and can continue indefinitely is the

Multiple Choice

corporation.

sole proprietorship.

nonprofit organization.

partnership.


When the owner invests equipment in a business,

Multiple Choice

assets increase and owner’s equity decreases.

assets and owner’s equity increase.

assets and revenue increase.

liabilities decrease and owner’s equity increases.

The Statement of Owner’s Equity is calculated as follows:

Multiple Choice

beginning capital + net income + withdrawals + additional investments = ending capital


beginning capital + net loss − withdrawals + additional investments = ending capital

beginning capital + net income − withdrawals + additional investments = ending capital

beginning capital + net loss + withdrawals + additional investments = ending capital

The Financial Accounting Standards Board is responsible for

Multiple Choice

auditing financial statements.

developing generally accepted accounting principles.

establishing accounting systems for businesses.

making recommendations to the Securities and Exchange Commission.


The Balance Sheet heading includes each of the following except:

Multiple Choice

firm’s name.

title of the report.

date of the report.

firm’s address.

Tax planning includes

Multiple Choice

auditing tax returns.

correcting tax returns.


preparing tax returns.

suggesting actions to reduce tax liability.

Which of the following equations is the Fundamental Accounting Equation?

Multiple Choice

Assets – Liabilities = Owner’s Equity

Assets – Owner’s Equity = Liabilities

Assets + Liabilities = Owner’s Equity

Assets = Liabilities + Owner’s Equity

Tax accounting involves tax compliance and


Multiple Choice

tax configuration.

tax planning.

tax obfuscation.

tax evaluation.

Amounts that a business must pay in the future are known as:

Multiple Choice

capital.

liabilities.

assets.


expenses.

Identify the form of business that is considered a separate legal entity.

Multiple Choice

a limited liability partnership

a sole proprietorship

a partnership

a corporation

Which of the following is NOT a service of public accounting firms?

Multiple Choice

management advisory services


auditing

investment services

tax accounting

Which financial statement is reported as of a specific date?

Multiple Choice

Income Statement

Statement of Changes in Financial Position

Balance Sheet

Statement of Owner’s Equity


Identify the type of accounts that would appear on a firm’s income statement

Multiple Choice

revenues and expenses.

liabilities and expenses.

assets and liabilities.

assets and revenues.

A company issues periodic reports called

Multiple Choice

summaries.


financial statements.

tax returns.

audits.

Managerial accounting is

Multiple Choice

private accounting.

government accounting.

tax accounting.

public accounting.

Which of the following is NOT an area in which accountants usually practice?


Multiple Choice

Public Accounting

Governmental Accounting

Industrial Accounting

Managerial (Private) Accounting

All financial statements submitted to the SEC by publicly owned corporations must include an auditor’s report prepared by

Multiple Choice

an independent certified public accountant.

anyone in the accounting department.


the firm’s managerial accountant.

an internal auditor.

The group of accounting educators who offer their opinions about proposed FASB statements, after research has been done to determine the possible effects on financial reporting and the economy, is

Multiple Choice

the FCC.

the AICPA.

the SEC.

the AAA.


If the income statement covered a six-month period ending on November 30, 2019, the third line of the income statement heading would read:

Month Ended November 30, 2019.

November 30, 2019.

Six-month Period Ended November 30, 2019.

Month of November, 2019.

Which of the following is an example of an expense:

Multiple Choice

an owner withdrawal for personal use.

the receipt of cash from a credit customer.


the payment of a creditor on account.

the payment of the monthly utility bill.

Which financial statement is a representation of the accounting equation?

Multiple Choice

Balance Sheet

Income Statement

Statement of Owner’s Equity

Profit and Loss Statement

Which of the following is NOT a type of information communicated by the financial statements?


Multiple Choice

how much the business owes others

what types of assets business owns

how long the business has been in operation

whether or not the business is profitable

When the owner writes a company check to pay the company’s electric bill,

Multiple Choice

expenses increase and owner’s equity increases.

assets and owner’s equity decrease.

assets and liabilities decrease.


assets and owner’s equity increase.

The rent paid for future months is a(n):

Multiple Choice

liability.

expense.

revenue.

asset.

When the owner withdraws cash for personal use,

Multiple Choice

assets decrease and owner’s equity increases.


owner’s equity decreases and revenue decreases.

assets decrease and owner’s equity decreases.

assets decrease and expenses increase.

Choose the option below that reflects the correct order in which to prepare the three financial statements

Multiple Choice

Income Statement; Statement of Owner’s Equity; Balance Sheet.

Balance Sheet; Income Statement; Statement of Owner’s Equity.

Income Statement; Balance Sheet; Statement of Owner’s Equity.

Statement of Owner’s Equity; Balance Sheet; Income Statement.


Revenue by definition is: ----------------------------------------------------------------------------------------ACC 290 Week 2 Apply Connect Assignment FOR MORE CLASSES VISIT www.acc290genius.com

ACC 290 Week 2 Apply Connect Assignment

Complete the Week 2 Assignment in Connect.

Note: You have only 1 attempt available to complete assignments

1

The accountant for the firm owned by Randy Guttery prepares financial statements at the end of each month. The following


transactions for Randy Guttery, Landscape Consultant took place during the month ended June 30, 2019. The following transactions are for Randy Guttery, Landscape Consultant.

Transactions:

Guttery invested $156,000 in cash to start the business.

Paid $5,600 for the current month’s rent.

Bought office furniture for $16,320 in cash.

Performed services for $7,800 in cash.

Paid $1,210 for the monthly telephone bill.


Performed services for $13,600 on credit.

Purchased a computer and copier for $37,200; paid $12,600 in cash immediately with the balance due in 30 days.

Received $6,800 from credit clients.

Paid $3,600 in cash for office cleaning services for the month.

Purchased additional office chairs for $5,400; received credit terms of 30 days.

Purchased office equipment for $36,000 and paid half of this amount in cash immediately; the balance is due in 30 days.

Issued a check for $9,000 to pay salaries.

Performed services for $14,100 in cash.

Performed services for $15,600 on credit.


Collected $7,600 on accounts receivable from charge customers.

Issued a check for $2,700 in partial payment of the amount owed for office chairs.

Paid $660 to a duplicating company for photocopy work performed during the month.

Paid $1,180 for the monthly electric bill.

Guttery withdrew $8,600 in cash for personal expenses.

Post the above transactions into the appropriate T accounts.

Analyze:


What liabilities does the business have after all transactions have been recorded? T accounts normally do not have any minus signs. Use minus signs in this problem to demonstrate your understanding of decreases to account balances.

2

The following occurred during June at Hicks Family Counseling.

Post the following transactions into the appropriate T accounts.


Transactions:

Purchased office supplies for $1,900 in cash.

Delivered monthly statements, collected fee income of $26,500.

Paid the current month’s office rent of $3,900.

Completed professional counseling, billed client for $4,100.

Client paid fee of $2,100 for weekly counseling, previously billed.

Paid office salaries of $3,500.

Paid telephone bill of $470.

Billed client for $3,100 fee for preparing a counseling evaluation.


Purchased office supplies of $990 on account.

Paid office salaries of $3,500.

Collected $3,100 from client who was billed.

Clients paid a total of $9,200 cash in fees.

Analyze:

How much cash did the business spend during the month? T accounts normally do not have any minus signs. Use minus signs in this problem to demonstrate your understanding of decreases to account balances.


3

The following transactions took place at Calhoun Counseling Services, a business established by Ronald Calhoun.

Post the following transactions into the appropriate T accounts.

Transactions:

Ronald Calhoun invested $63,000 cash in the business. Purchased office furniture for $16,300 in cash. Bought a fax machine for $980; payment is due in 30 days. Purchased a used car for the firm for $16,300 in cash. Calhoun invested an additional $10,300 cash in the business. Bought a new computer for $3,300; payment is due in 60 days. Paid $980 to settle the amount owed on the fax machine. Calhoun withdrew $4,300 in cash for personal expenses.


Analyze: Which transactions affected asset accounts? T accounts normally do not have any minus signs. Use minus signs in this problem to demonstrate your understanding of decreases to account balances. ----------------------------------------------------------------------------------------ACC 290 Week 2 Apply: Connect® Exercise FOR MORE CLASSES VISIT www.acc290genius.com

ACC 290 Week 2 Apply: Connect® Exercise Review the Knowledge Check in preparation for this assignment.

Complete the Week 2 Exercise in Connect®.

Note: You have only one attempt available to complete this assignment.

Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date.


The classification and normal balance of the salaries expense account is:

an expense with a credit balance.

a liability with a debit balance.

an asset with a debit balance.

an expense with a debit balance.

Which of the following accounts have normal credit balances?

Accounts Receivable and Fees Income

Salaries Expense and Accounts Payable

Fees Income and John Smith, Capital

Accounts Payable and Equipment


A business purchases equipment costing $5,500. They pay $1,500 right away and charge the remaining amount. To record this transaction, the business would:

Multiple Choice

Debit Equipment $5,500; Credit Cash $1,500 and Credit Accounts Payable $4,000

Debit Equipment $4,000; Credit Accounts Payable $4,000

Debit Equipment $5,500; Credit Accounts Payable $5,500

Debit Equipment $1,500; Credit Cash $1,500

A business pays a creditor on account. The entry to record this transaction is:

Multiple Choice


Debit Accounts Receivable; Credit Accounts Payable

Debit Cash; Credit Accounts Payable

Debit Accounts Receivable; Credit to Cash

Debit Accounts Payable; Credit Cash

The Net Income appears as a separate line item on what two statements?

Multiple Choice

the statement of owner’s equity and the income statement

the trial balance and the income statement

the statement of owner’s equity and the balance sheet

the income statement and the balance sheet


The normal balance of an account is the:

Multiple Choice

increase side of the account.

the left side of the account.

decrease side of the account.

the right side of the account.

When the trial balance totals are not equal, the error may have been caused by recording a debit as a credit if the difference is divisible by:

Multiple Choice

2.


9.

3.

5.

Which of the following transactions increase owner’s equity?

Multiple Choice

earning revenue

paying expenses

owner withdrawals for personal use

receiving cash from customers on account

Which of the following is not one of the formal financial statements that is made available to all users of the financial statements.


Multiple Choice

Statement of Owner’s Equity

Balance Sheet

Income Statement

Trial Balance

A business receives a bill for utilities but decides to pay it next month. The business would record the receipt of the bill by:

Multiple Choice

Debiting Utilities Expense; Crediting Accounts Receivable


Debiting Utilities Expense; Crediting Accounts Payable

Debiting Accounts Payable; Crediting Utilities Expense

Debiting Utilities Expense; Crediting Cash

Which of the following represents the proper sequence for preparing the financial statements?

Multiple Choice

income statement, statement of owner’s equity, balance sheet

statement of owner’s equity, income statement, balance sheet

income statement, balance sheet, statement of owner’s equity

balance sheet, statement of owner’s equity, income statement


The classification and normal balance of the accounts receivable account is:

Multiple Choice

a revenue with a debit balance.

an asset with a debit balance.

a liability with a debit balance.

an asset with a credit balance.

The ABC Company paid cash on account for supplies purchased last month. This would be recorded in the T-accounts as a:

Multiple Choice

debit Accounts Receivable and credit Cash.


debit to Accounts Payable and credit Cash.

debit Supplies and credit Accounts Payable.

debit Cash and credit Supplies.

The account used to record increases in owner’s equity from the sale of goods or services is:

Multiple Choice

the drawing account.

the cash account.

the fees income account.

the capital account.

Which of the following does NOT describe a transposition?


Multiple Choice

It involves misplaced digits in a number.

It causes the difference between the debit total and the credit total to be divisible by 2.

It causes the trial balance to be out of balance.

It is an error.

A business earns $4,000 from various charge account clients. To record this transaction, the business would:

Multiple Choice

Debit Accounts Receivable; Credit Cash

Debit Accounts Payable; Credit Fees Income


Debit Accounts Receivable; Credit Fees Income

Debit Cash; Credit Accounts Receivable

Debits are used to record increases in:

Multiple Choice

assets and expenses.

assets and revenue.

revenue and owner’s equity.

assets and liabilities.

Which of the following would cause the Debit column and the Credit column of the Trial Balance to be unequal?


Multiple Choice

Placing the Fees Income balance in the Credit column

Placing the Office Equipment balance in the Debit column

Placing the Prepaid Rent balance in the Credit column

Placing the Rent Expense balance in the Debit column

Which of the following accounts is NOT a nominal account?

Multiple Choice

Moriah Paige, Drawing

Office Supplies


Salaries Expense

Rent Revenue

When charge customers pay cash to apply against their accounts, the amount is recorded:

Multiple Choice

on the left side of the Cash account and the right side of the Accounts Receivable account.

on the left side of the Cash account and the left side of the Accounts Receivable account.

on the left side of the Accounts Payable account and the right side of the Cash account.

on the left side of the Cash account and the right side of the Fees Income account.


The “Net Income” or “Net Loss” is transferred from the income statement to the

Multiple Choice

balance sheet.

statement of owner’s equity.

chart of accounts.

trial balance.

Which of the following types of accounts normally have debit balances?

Multiple Choice

assets, liabilities, and owner’s equity


expenses and assets

assets and revenue

liabilities and owner’s equity

Which of the following entries records the withdrawal of cash for personal use by Ty Knott, the owner of a business?

Multiple Choice

debit Cash and credit Ty Knott, Capital

debit Cash and credit Salary Expense

debit Salary Expense and credit Cash

debit Ty Knott, Drawing, and credit Cash


An accounting system that involves recording the effects of each transaction as debits and credits is:

Multiple Choice

completing one T account.

analyzing a business transaction.

the double-entry system.

preparing financial statements.

A business performed $8,000 of services. Their customer paid $3,000 of the amount right away but charged the remaining amount. To record this transaction, the business would:

Multiple Choice


Debit Accounts Receivable $8,000 and; Credit Fees Income $8,000

Debit Cash $3,000 and Debit Accounts Receivable $5,000 and Credit Fees Income $8,000

Debit Cash $3,000 and Debit Accounts Payable $5,000; Credit Fees Income $8,000

Debit Cash $3,000; Credit Fees Income $3,000

The total of the figures on the left side of a Cash account is $36,700. The total of the figures on the right side is $16,250. The balance of this account:

Multiple Choice

is $20,450 and would be recorded on the right side of the account.

is $52,950 and would be recorded on the left side of the account.

is $20,450 and would be recorded on the left side of the account.


is $52,950 and would be recorded on the right side of the account.

On a statement of owner’s equity, beginning capital is $152,000, Drawing for the year is $65,000, and the ending capital is $191,000. What is the amount of Net Income for the year?

Multiple Choice

$126,000

$ 26,000

$104,000

$ 87,000

Credits are used to record:

Multiple Choice


decreases in assets and owner’s equity and increases in liabilities.

decreases in liabilities and increases in assets and owner’s equity.

increases in liabilities and revenues.

increases in assets, liabilities, and owner’s equity.

The ending capital balance appears on what financial statement(s)

Multiple Choice

income statement and balance sheet.

income statement and the statement of owner’s equity.

statement of owner’s equity and the balance sheet.

only on the balance sheet.


A business purchases supplies on account. The entry to record this transaction is:

Multiple Choice

Debit to Supplies; Credit Accounts Receivable

Debit Supplies; Credit Accounts Payable

Debit Supplies; Credit to Cash

Debit to Cash; Credit Supplies

Which of the following would cause the Trial Balance to be out of balance?

Multiple Choice

Placing the Rent Expense account balance in the Debit column


Placing the Accounts Receivable balance in the Credit column

Placing the Equipment account balance in the Debit column

Placing the Capital account balance in the Credit column

Select the entry below to record the payment to employees for work performed during the pay period?

Multiple Choice

debit Cash, and credit Accounts Receivable

debit Salary Expense and credit Cash

debit Cash and credit Salary Expense

debit Salary Expense and credit Accounts Receivable -----------------------------------------------------------------------------------------


ACC 290 Week 2 Practice Connect Practice Assignment FOR MORE CLASSES VISIT www.acc290genius.com

ACC 290 Week 2 Practice: Connect Practice Assignment

Complete the Week 2 Practice in Connect.

Note: You have unlimited attempts available to complete practice assignments

1

The following T accounts show transactions that were recorded by Residential Relocators, a firm that specializes in local housing rentals. The entries for the first transaction are labeled with the letter (a), the entries for the second transaction with the letter (b), and so on.


Cash

(a)

95,000 (b)

23,000

(d)

15,000 (e)

350

(g)

1,500 (h)

5,500

(i)

Equipment

(c)

40,000

2,500


Accounts Receivable

(f)

5,000 (g)

1,500


Accounts Payable

(c)

Supplies

(b)

23,000

40,000


Wade Wilson, Capital

(a)

Fees Income

95,000


(d)

15,000

(f)

5,000

Telephone Expense

(e)

350


Wade Wilson, Drawing

(i)

2,500

Salaries Expense

(h)

5,500


Determine the balance of each account.

2

Derrick Wells decided to start a dental practice. The first five transactions for the business follow.


Derrick invested $45,000 cash in the business.

Paid $15,000 in cash for equipment.

Performed services for cash amounting to $4,500.

Paid $1,900 in cash for advertising expense.

Paid $1,500 in cash for supplies.

(1) Select which two accounts are affected in each of the above transactions.

(2&3) Post the above transactions into the appropriate T accounts.


3

The accountant for the firm owned by Randy Guttery prepares financial statements at the end of each month. The following transactions for Randy Guttery, Landscape Consultant took place during the month ended June 30, 2019. The following transactions are for Randy Guttery, Landscape Consultant.

Transactions:

Guttery invested $80,000 in cash to start the business.


Paid $3,000 for the current month’s rent.

Bought office furniture for $8,360 in cash.

Performed services for $4,100 in cash.

Paid $625 for the monthly telephone bill.

Performed services for $7,000 on credit.

Purchased a computer and copier for $19,000; paid $6,500 in cash immediately with the balance due in 30 days.

Received $3,500 from credit clients.

Paid $2,000 in cash for office cleaning services for the month.

Purchased additional office chairs for $2,900; received credit terms of 30 days.


Purchased office equipment for $20,000 and paid half of this amount in cash immediately; the balance is due in 30 days.

Issued a check for $4,700 to pay salaries.

Performed services for $7,250 in cash.

Performed services for $8,000 on credit.

Collected $4,000 on accounts receivable from charge customers.

Issued a check for $1,450 in partial payment of the amount owed for office chairs.

Paid $350 to a duplicating company for photocopy work performed during the month.

Paid $610 for the monthly electric bill.

Guttery withdrew $4,500 in cash for personal expenses.


Post the above transactions into the appropriate T accounts.

Analyze:

What liabilities does the business have after all transactions have been recorded? T accounts normally do not have any minus signs. Use minus signs in this problem to demonstrate your understanding of decreases to account balances.

4


The following T accounts show transactions that were recorded by Residential Relocators, a firm that specializes in local Housing rentals.

Cash

(a)

95,000 (b)

23,000

(d)

15,000 (e)

350

(g)

1,500 (h)

5,500

(i)

Equipment

2,500


(c)

40,000

Accounts Receivable

(f)

5,000 (g)

1,500


Accounts Payable

(c)

Supplies

(b)

23,000

40,000


Wade Wilson, Capital

(a)

95,000


Fees Income

(d)

15,000

(f)

5,000

Telephone Expense

(e)

350


Wade Wilson, Drawing

(i)

2,500

Salaries Expense


(h)

5,500

Required:

Prepare a statement of owner’s equity and a balance sheet for Residential Relocators as of December 31, 2019.


5

The following T accounts show transactions that were recorded by Residential Relocators, a firm that specializes in local housing rentals.

Cash

(a)

95,000 (b)

23,000

(d)

15,000 (e)

350

(g)

1,500 (h)

5,500

(i)

2,500


Equipment

(c)

40,000

Accounts Receivable

(f)

5,000 (g)

1,500


Accounts Payable

(c)

40,000


Supplies

(b)

23,000

Wade Wilson, Capital

(a)

95,000


Fees Income

(d)

15,000

(f)

5,000

Telephone Expense


(e)

350

Wade Wilson, Drawing

(i)

2,500


Salaries Expense

(h)

5,500

Required:

Prepare a trial balance and an income statement for Residential Relocators. The trial balance is for December 31, 2019, and the income statement is for the month ended December 31, 2019.


6

The accountant for the firm owned by Randy Guttery prepares financial statements at the end of each month. The following transactions for Randy Guttery, Landscape Consultant took place during the month ended June 30, 2019.

Transactions:

Guttery invested $80,000 in cash to start the business.


Paid $3,000 for the current month’s rent.

Bought office furniture for $8,360 in cash.

Performed services for $4,100 in cash.

Paid $625 for the monthly telephone bill.

Performed services for $7,000 on credit.

Purchased a computer and copier for $19,000; paid $6,500 in cash immediately with the balance due in 30 days.

Received $3,500 from credit clients.

Paid $2,000 in cash for office cleaning services for the month.

Purchased additional office chairs for $2,900; received credit terms of 30 days.


Purchased office equipment for $20,000 and paid half of this amount in cash immediately; the balance is due in 30 days.

Issued a check for $4,700 to pay salaries.

Performed services for $7,250 in cash.

Performed services for $8,000 on credit.

Collected $4,000 on accounts receivable from charge customers.

Issued a check for $1,450 in partial payment of the amount owed for office chairs.

Paid $350 to a duplicating company for photocopy work performed during the month.

Paid $610 for the monthly electric bill.

Guttery withdrew $4,500 in cash for personal expenses.


Required:

Prepare a trial balance, an income statement, a statement of owner’s equity, and a balance sheet. Assume that the transactions took place during the month ended June 30, 2019. Determine the account balances before you start work on the financial statements.

Analyze:

What is the change in owner’s equity for the month of June? ----------------------------------------------------------------------------------------ACC 290 Week 2 Practice: Connect® Knowledge Check FOR MORE CLASSES VISIT


www.acc290genius.com

ACC 290 Week 2 Practice: Connect® Knowledge Check Complete the Week 2 Knowledge Check in Connect®.

Note: You have unlimited attempts available to complete this practice assignment. The highest scored attempt will be recorded.

These assignments have earlier due dates, so plan accordingly.

Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date.

A business purchases equipment costing $5,500. They pay $1,500 right away and charge the remaining amount. To record this transaction, the business would:

Multiple Choice

Debit Equipment $5,500; Credit Cash $1,500 and Credit Accounts Payable $4,000


Debit Equipment $4,000; Credit Accounts Payable $4,000

Debit Equipment $5,500; Credit Accounts Payable $5,500

Debit Equipment $1,500; Credit Cash $1,500

A business pays a creditor on account. The entry to record this transaction is:

Multiple Choice

Debit Accounts Receivable; Credit Accounts Payable

Debit Cash; Credit Accounts Payable

Debit Accounts Receivable; Credit to Cash

Debit Accounts Payable; Credit Cash


The Net Income appears as a separate line item on what two statements?

Multiple Choice

the statement of owner’s equity and the income statement

the trial balance and the income statement

the statement of owner’s equity and the balance sheet

the income statement and the balance sheet

The normal balance of an account is the:

Multiple Choice

increase side of the account.

the left side of the account.


decrease side of the account.

the right side of the account.

When the trial balance totals are not equal, the error may have been caused by recording a debit as a credit if the difference is divisible by:

Multiple Choice

2.

9.

3.

5.

Which of the following transactions increase owner’s equity?


Multiple Choice

earning revenue

paying expenses

owner withdrawals for personal use

receiving cash from customers on account

Which of the following is not one of the formal financial statements that is made available to all users of the financial statements.

Multiple Choice

Statement of Owner’s Equity

Balance Sheet

Income Statement


Trial Balance

A business receives a bill for utilities but decides to pay it next month. The business would record the receipt of the bill by:

Multiple Choice

Debiting Utilities Expense; Crediting Accounts Receivable

Debiting Utilities Expense; Crediting Accounts Payable

Debiting Accounts Payable; Crediting Utilities Expense

Debiting Utilities Expense; Crediting Cash

Which of the following represents the proper sequence for preparing the financial statements?


Multiple Choice

income statement, statement of owner’s equity, balance sheet

statement of owner’s equity, income statement, balance sheet

income statement, balance sheet, statement of owner’s equity

balance sheet, statement of owner’s equity, income statement

The classification and normal balance of the accounts receivable account is:

Multiple Choice

a revenue with a debit balance.

an asset with a debit balance.


a liability with a debit balance.

an asset with a credit balance.

The ABC Company paid cash on account for supplies purchased last month. This would be recorded in the T-accounts as a:

Multiple Choice

debit Accounts Receivable and credit Cash.

debit to Accounts Payable and credit Cash.

debit Supplies and credit Accounts Payable.

debit Cash and credit Supplies.

The account used to record increases in owner’s equity from the sale of goods or services is:


Multiple Choice

the drawing account.

the cash account.

the fees income account.

the capital account.

Which of the following does NOT describe a transposition?

Multiple Choice

It involves misplaced digits in a number.

It causes the difference between the debit total and the credit total to be divisible by 2.

It causes the trial balance to be out of balance.


It is an error.

A business earns $4,000 from various charge account clients. To record this transaction, the business would:

Multiple Choice

Debit Accounts Receivable; Credit Cash

Debit Accounts Payable; Credit Fees Income

Debit Accounts Receivable; Credit Fees Income

Debit Cash; Credit Accounts Receivable

Debits are used to record increases in:

Multiple Choice


assets and expenses.

assets and revenue.

revenue and owner’s equity.

assets and liabilities.

Which of the following would cause the Debit column and the Credit column of the Trial Balance to be unequal?

Multiple Choice

Placing the Fees Income balance in the Credit column

Placing the Office Equipment balance in the Debit column

Placing the Prepaid Rent balance in the Credit column

Placing the Rent Expense balance in the Debit column


Which of the following accounts is NOT a nominal account?

Multiple Choice

Moriah Paige, Drawing

Office Supplies

Salaries Expense

Rent Revenue

When charge customers pay cash to apply against their accounts, the amount is recorded:

Multiple Choice


on the left side of the Cash account and the right side of the Accounts Receivable account.

on the left side of the Cash account and the left side of the Accounts Receivable account.

on the left side of the Accounts Payable account and the right side of the Cash account.

on the left side of the Cash account and the right side of the Fees Income account.

The “Net Income” or “Net Loss” is transferred from the income statement to the

Multiple Choice

balance sheet.

statement of owner’s equity.


chart of accounts.

trial balance.

Which of the following types of accounts normally have debit balances?

Multiple Choice

assets, liabilities, and owner’s equity

expenses and assets

assets and revenue

liabilities and owner’s equity


Which of the following entries records the withdrawal of cash for personal use by Ty Knott, the owner of a business?

Multiple Choice

debit Cash and credit Ty Knott, Capital

debit Cash and credit Salary Expense

debit Salary Expense and credit Cash

debit Ty Knott, Drawing, and credit Cash

An accounting system that involves recording the effects of each transaction as debits and credits is:

Multiple Choice

completing one T account.


analyzing a business transaction.

the double-entry system.

preparing financial statements.

A business performed $8,000 of services. Their customer paid $3,000 of the amount right away but charged the remaining amount. To record this transaction, the business would:

Multiple Choice

Debit Accounts Receivable $8,000 and; Credit Fees Income $8,000

Debit Cash $3,000 and Debit Accounts Receivable $5,000 and Credit Fees Income $8,000

Debit Cash $3,000 and Debit Accounts Payable $5,000; Credit Fees Income $8,000

Debit Cash $3,000; Credit Fees Income $3,000


The total of the figures on the left side of a Cash account is $36,700. The total of the figures on the right side is $16,250. The balance of this account:

Multiple Choice

is $20,450 and would be recorded on the right side of the account.

is $52,950 and would be recorded on the left side of the account.

is $20,450 and would be recorded on the left side of the account.

is $52,950 and would be recorded on the right side of the account.

On a statement of owner’s equity, beginning capital is $152,000, Drawing for the year is $65,000, and the ending capital is $191,000. What is the amount of Net Income for the year?

Multiple Choice


$126,000

$ 26,000

$104,000

$ 87,000

Credits are used to record: ACC 290 Week 3 Apply Connect Assignment (with Excel File) FOR MORE CLASSES VISIT www.acc290genius.com

ACC 290 Week 3 Apply Connect Assignment

Complete the Week 3 Assignment in Connect.

Note: You have only 1 attempt available to complete assignments


1

On October 1, 2019, Helen Kennedy opened an advertising agency.

DATE

TRANSACTIONS


Oct. 1

Helen Kennedy invested $61,000 cash in the business.

2

Paid October office rent of $3,050; issued Check 1001.

5


Purchased desks and other office furniture for $13,900 from Office Furniture Mart, Inc.; received Invoice 6704 payable in 60 days.

6

Issued Check 1002 for $3,250 to purchase art equipment.

7

Purchased supplies for $1,600; paid with Check 1003.


10

Issued Check 1004 for $490 for office cleaning service.

12

Performed services for $4,150 in cash and $1,950 on credit. (Use a compound entry.)

15


Returned damaged supplies for a cash refund of $290.

18

Purchased a computer for $3,050 from Office Furniture Mart, Inc., Invoice 7108; issued Check 1005 for a $1,775 down payment, with the balance payable in 30 days. (Use one compound entry.)

20


Issued Check 1006 for $6,950 to Office Furniture Mart, Inc., as payment on account for Invoice 6704.

26

Performed services for $4,450 on credit.

27

Paid $270 for monthly telephone bill; issued Check 1007.


30

Received $3,750 in cash from credit customers.

30

Mailed Check 1008 to pay the monthly utility bill of $345.

30


Issued Checks 1009–1011 for $8,050 for salaries.

Required:

1.

Journalize the above transactions.

2.

Post the above transactions to the ledger accounts.


Analyze:

What is the balance of account 202 in the general ledger?

2

The transactions that follow took place at the Desoto Recreation and Sports Arena during September 2019. This firm has indoor courts where customers can play tennis for a fee. It also rents equipment and offers tennis lessons.


DATE

TRANSACTIONS

Sept.

1

Issued Check 1169 for $1,200 to pay the September rent.


5

Performed services for $3,200 in cash.

6


Performed services for $2,050 on credit.

10

Paid $560 for monthly telephone bill; issued Check 1170.


11

Paid for equipment repairs of $800 with Check 1171.

12

Received $3,000 on account from credit clients.


15

Issued Checks 1172–1177 for $4,000 for salaries.

18


Issued Check 1178 for $1,800 to purchase supplies.

19

Purchased new tennis rackets for $2,050 on credit from The Tennis Supply Shop; received Invoice 3108, payable in 30 days.


20

Issued Check 1179 for $2,720 to purchase new nets. (Equip.)

21

Received $910 on account from credit clients.


21

Returned a damaged net and received a cash refund of $410.

22


Performed services for $3,400 in cash.

23

Performed services for $4,990 on credit.


26

Issued Check 1180 for $600 to purchase supplies.

28

Paid the monthly electric bill of $2,390 with Check 1181.


30

Issued Checks 1182–1187 for $4,000 for salaries.

30


Issued Check 1188 for $4,000 cash to Ellis Carter for personal expenses.

Required:

Record each of the above transactions in the general journal.

Analyze:


If the company paid a bill for supplies on October 1, what check number would be included in the journal entry description? ----------------------------------------------------------------------------------------ACC 290 Week 3 Apply: Connect® Exercise FOR MORE CLASSES VISIT www.acc290genius.com

ACC 290 Week 3 Apply: Connect® Exercise

Review the Knowledge Check in preparation for this assignment.

Complete the Week 3 Exercise in Connect®.

Note: You have only one attempt available to complete this assignment.

Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date.

In which of the following transactions would Utilities Expense be debited:


Multiple Choice

the company received a bill for utilities to be paid the following month the company received and paid a bill for utilities the company paid a utility bill on account both A and B The journal entry to record the payment of the monthly rent would include:

Multiple Choice

a debit to Rent Expense and a credit to Cash. a debit to Capital and a credit to Cash. a debit to Rent Expense and a credit to Capital. a debit to Rent Expense and a credit to Accounts Receivable. The journal entry to record the withdrawal of cash by Sue Snow, the owner, to pay a personal utility bill would include:

Multiple Choice


a debit to Sue Snow, Capital, and a credit to Cash. a debit to Utilities Expense and a credit to Cash. a debit to Sue Snow, Capital and a credit to Utilities Expense. a debit to Sue Snow, Drawing and a credit to Cash. The journal entry to record a payment made in January for rent for the months of February and March would include:

Multiple Choice

a debit to Rent Expense, and a credit to Sue Snow, Capital. a debit to Prepaid Rent and a credit to Cash. a debit to Rent Expense and a credit to Cash. a debit to Sue Snow, Drawing and a credit to Rent Expense. Agatha Panthis Landscape Architect Company earned $2,500 of revenue collecting $1,000 immediately and will collect the remaining amount in 30 days. The journal entry to record this transaction is:

rev: 12_08_2017_QC_CS-111818

Multiple Choice


Debit Fees Income $2,500; Credit Accounts Receivable $2,500 Debit Cash $1,000; Credit Fees Income $1,000 Debit Cash $1,000; Debit Accounts Receivable $1,500; Credit Fees Income $2,500 Debit Fees Income $2,500; Credit Cash $1,000; credit Accounts Receivable $1,500 The journal entry to record the payment of salaries for the month is:

Multiple Choice

Debit Salaries Expense; Credit Cash Debit Cash; Credit Salaries Expense Debit Salaries; Credit Accounts Payable Debit Cash; Credit Salaries Payable On June 1, XYZ Inc. paid $400 to its landlord for rent for the current month. The journal entry to record this transaction is:

Multiple Choice

Prepaid Rent $ 400


Rent Expense

$ 400

________________________________________

Prepaid Rent $ 400

Cash

$ 400

________________________________________

Rent Expense $ 400

Cash

$ 400

________________________________________

Cash $ 400

Rent Expense

$ 400


________________________________________

ABC Co. performed $5,000 of consulting work. Their customer paid them $3,500 right away and agreed to pay the balance in 30 days. Select the correct journal entry from the options below to record the transaction:

Multiple Choice

a debit to Cash for $3,500, a debit to Accounts Receivable for $1,500 and a credit to Capital for $5,000. a debit to Cash for $3,500 and a credit to Fees Income for $3,500. a debit to Cash for $3,500; a debit to Accounts Receivable for $1,500 and a credit to Fees Income for $5,000. a debit to Fees Income for $5,000, a credit to Cash for $3,500 and a credit to Accounts Receivable for $1,500. Listed below in random order are the steps in the accounting cycle.

(1) prepare the financial statements

(2) post the journal entries to the ledger


(3) record journal entries

(4) prepare a trial balance

What is the proper order of these steps?

Multiple Choice

(2), (3), (4), (1) (3), (2), (4), (1) (4), (3), (2), (1) (3), (2), (1), (4) Bertrand Inc. purchased some shop equipment for $4,500 in cash. By mistake, the journal entry debited the Office Equipment account rather than the Shop Equipment account. What correcting entry would be necessary?

Multiple Choice

Debit Shop Equipment $4,500; credit Office Equipment $4,500


Debit Office Equipment $4,500; credit Shop Equipment $4,500 Debit Cash $4,500; credit Shop Equipment $4,500 Debit Office Equipment $4,500; credit Cash $4,500 ----------------------------------------------------------------------------------------ACC 290 Week 3 Practice Connect Practice Assignment FOR MORE CLASSES VISIT www.acc290genius.com

ACC 290 Week 3 Practice Connect Practice Assignment

Complete the Week3 Practice in Connect.

Note: You have unlimited attempts available to complete practice assignments

1


On October 1, 2019, Helen Kennedy opened an advertising agency.

DATE TRANSACTIONS

Oct. 1 Helen Kennedy invested $70,000 cash in the business.

2

Paid October office rent of $4,000; issued Check 1001.

5 Purchased desks and other office furniture for $18,000 from Office Furniture Mart, Inc.; received Invoice 6704 payable in 60 days.

6

Issued Check 1002 for $4,100 to purchase art equipment.

7

Purchased supplies for $1,670; paid with Check 1003.

10

Issued Check 1004 for $800 for office cleaning service.


12 Performed services for $4,200 in cash and $1,800 on credit. (Use a compound entry.)

15

Returned damaged supplies for a cash refund of $300.

18 Purchased a computer for $3,000 from Office Furniture Mart, Inc., Invoice 7108; issued Check 1005 for a $1,750 down payment, with the balance payable in 30 days. (Use one compound entry.)

20 Issued Check 1006 for $9,500 to Office Furniture Mart, Inc., as payment on account for Invoice 6704.

26

Performed services for $4,800 on credit.

27

Paid $375 for monthly telephone bill; issued Check 1007.

30

Received $4,200 in cash from credit customers.

30

Mailed Check 1008 to pay the monthly utility bill of $1,080.

30

Issued Checks 1009–1011 for $9,000 for salaries.


Required:

Journalize the above transactions.

Post the above transactions to the ledger accounts.

Analyze:

What is the balance of account 202 in the general ledger?


2

The transactions that follow took place at the Desoto Recreation and Sports Arena during September 2019. This firm has indoor courts where customers can play tennis for a fee. It also rents equipment and offers tennis lessons.

DATE TRANSACTIONS

Sept. 1 rent.

5

Issued Check 1169 for $2,000 to pay the September

Performed services for $4,000 in cash.


6

Performed services for $2,950 on credit.

10

Paid $900 for monthly telephone bill; issued Check 1170.

11

Paid for equipment repairs of $1,050 with Check 1171.

12

Received $1,500 on account from credit clients.

15

Issued Checks 1172–1177 for $5,200 for salaries.

18

Issued Check 1178 for $2,700 to purchase supplies.

19 Purchased new tennis rackets for $3,250 on credit from The Tennis Supply Shop; received Invoice 3108, payable in 30 days.

20 (Equip.)

21

Issued Check 1179 for $3,820 to purchase new nets.

Received $500 on account from credit clients.


21

Returned a damaged net and received a cash refund of

22

Performed services for $3,480 in cash.

23

Performed services for $5,050 on credit.

26

Issued Check 1180 for $620 to purchase supplies.

28

Paid the monthly electric bill of $2,500 with Check 1181.

30

Issued Checks 1182–1187 for $5,200 for salaries.

$570.

30 Issued Check 1188 for $5,000 cash to Ellis Carter for personal expenses.

Required:


Record each of the above transactions in the general journal.

Analyze:

If the company paid a bill for supplies on October 1, what check number would be included in the journal entry description?


3

Selected activity of Mason Consulting Services follow.

DATE TRANSACTIONS

2019

Sept. 1

Zack Mason invested $30,000 in cash to start the firm.

4 Purchased office equipment for $3,250 on credit from Den, Inc.; received Invoice 9823, payable in 30 days.

16 Purchased an automobile that will be used to visit clients; issued Check 1001 for $15,000 in full payment.

20 with Check 1002.

Purchased supplies for $260; paid immediately


23

Returned damaged supplies for a cash refund of

$85.

30 Issued Check 1003 for $2,100 to Den, Inc., as payment on account for Invoice 9823.

30

Withdrew $1,500 in cash for personal expenses.

30

Issued Check 1004 for $3,500 to pay the rent for

30

Performed services for $7,325 in cash.

30

Paid $220 for monthly telephone bill, Check 1005.

October.

Post the above transactions into the appropriate Ledger accounts.


4

The following transactions took place at the Cook Employment Agency during November 2019.

DATE

TRANSACTIONS

Nov. 5 Performed services for Job Search, Inc., for $20,000; received $9,500 in cash and the client promised to pay the balance in 60 days.

18 Purchased a graphing calculator for $450 and some supplies for $600 from Office Supply; issued Check 1008 for the total.

23 Received Invoice 1602 for $2,500 from Automotive Technicians Repair for repairs to the firm’s automobile;


issued Check 1009 for half the amount and arranged to pay the other half in 30 days.

Prepare journal entries for the above transactions.

5

Selected activity of the Ray Shipping Service follow.


TRANSACTIONS

Gave a cash refund of $750 to a customer because of a lost package. (The customer had previously paid in cash.)

Sent a check for $1,050 to the utility company to pay the monthly bill.

Provided services for $7,800 on credit.

Purchased new equipment for $4,600 and paid for it immediately by check.

Issued a check for $3,500 to pay a creditor on account.

Performed services for $15,250 in cash.

Collected $6,250 from credit customers.


The owner made an additional investment of $25,000 in cash.

Purchased supplies for $3,250 on credit.

Issued a check for $3,750 to pay the monthly rent.

Analyze the above transactions and record a journal entry for each transaction.


6

Selected activity of Mason Consulting Services follow.

DATE TRANSACTIONS

2019

Sept. 1

Zack Mason invested $30,000 in cash to start the firm.

4 Purchased office equipment for $3,250 on credit from Den, Inc.; received Invoice 9823, payable in 30 days.

16 Purchased an automobile that will be used to visit clients; issued Check 1001 for $15,000 in full payment.

20 with Check 1002.

Purchased supplies for $260; paid immediately


23

Returned damaged supplies for a cash refund of

$85.

30 Issued Check 1003 for $2,100 to Den, Inc., as payment on account for Invoice 9823.

30

Withdrew $1,500 in cash for personal expenses.

30

Issued Check 1004 for $3,500 to pay the rent for

30

Performed services for $7,325 in cash.

30

Paid $220 for monthly telephone bill, Check 1005.

October.

Prepare journal entries for the transactions incurred during September of 2019. -----------------------------------------------------------------------------------------ACC 290 Week 3 Practice: ConnectÂŽ Knowledge Check FOR MORE CLASSES VISIT www.acc290genius.com


ACC 290 Week 3 Practice: Connect® Knowledge Check

Complete the Week 3 Knowledge Check in Connect®.

Note: You have unlimited attempts available to complete this practice assignment. The highest scored attempt will be recorded.

These assignments have earlier due dates, so plan accordingly.

Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date.

The journal entry to record the purchase of equipment for a $100 cash down payment and a balance of $400 due in 30 days would include:

Multiple Choice

a debit to Equipment for $100 and a credit to Accounts Payable for $400.


debit to Equipment for $500 and a credit to Cash for $500.

a debit to Equipment for $500, a credit to Cash for $100, and a credit to Accounts Payable for $400.

a debit to Equipment for $100 and a credit to Cash for $100.

Which of the following statements is CORRECT?

Multiple Choice

Compound entries include only debits.

Accounts being debited should always follow the accounts being credited in a compound entry.

Compound entries affect more than one debit and/or more than one credit.

All transactions require compound entries.


The account numbers from the ledger are recorded in the Posting Reference column of the general journal:

Multiple Choice

after each amount is posted.

as the transaction is journalized.

after all entries on the journal page have been posted.

as the first amount written in the journal.

The journal entry to record the performance of services for cash would include:

Multiple Choice

a debit to Fees Income and a credit to Cash.


a debit to Cash and a credit to Accounts Receivable.

a debit to Cash and a credit to Fees Income. a debit to Accounts Receivable and a credit to Cash. If the owner of the business wants to see both the debit and credit entry for a specific transaction, he would look in:

Multiple Choice

the journal the source document the ledger the chart of accounts Anna Conda Landscaping service received a bill for the utilities used during September. The bill will be paid in October. The journal entry to record the utility bill received is:

Multiple Choice

Debit Cash; Credit Utilities Expense Debit Accounts Payable; Credit Cash


Debit Utilities Expense; Credit Accounts Payable Debit Utilities Expense; Credit Cash Transactions in a journal are initially recorded in:

Multiple Choice

alphabetical order. dollar amount order. chronological order. randomly. When recording a business transaction into the general ledger, certain steps are followed. Identify the statement below that is NOT CORRECT regarding this process.

Multiple Choice

After posting a transaction, the new balance in an account can be seen in the general ledger. The process of transferring data from the journal to the ledger is called posting.


All transactions are recorded first in the general journal and then they are transferred to the general ledger. All transactions are recorded first in the general ledger and then they are transferred to the journal. When recording a business transaction into the journal, certain steps are followed. Identify the statement below that is CORRECT regarding the journalizing process.

Multiple Choice

All transactions are recorded first in the general ledger and then they are journalized in the journal. All credited accounts are listed first and then all debited accounts are indented and listed on the next lines. An explanation is indented and entered on the line underneath the last credit in the entry. No dates are used in the journal. Constantine Corporation reported Net Income for the year ended December 31, 2019, of $23,760 then discovered that the entry to pay the rent for December in the amount of $1,600 was not journalized and posted. What is the Net Income after the correcting journal entry is journalized and posted?


Multiple Choice

$20,560 $23,760 $22,160 $25,360 Which of the following statements is NOT correct?

Multiple Choice

If goods are purchased on credit, the supplier’s invoice number is used as the source document for the transaction. The description of a journal entry should include a reference to the source of the information contained in the entry. The credit portion of a general journal entry is always recorded first.

A firm should be able to trace amounts through the accounting records and back to their source documents. Bertrand Inc. performed services for clients in the amount of $1,350 on credit. If this transaction had been posted in error to the Cash account instead of the Accounts Receivable account, what correcting entry would be necessary?


Multiple Choice

Debit Accounts Receivable $1,350; credit Cash $1,350 Debit Fees Income $1,350; credit Cash $1,350 Debit Cash $1,350; credit Accounts Receivable $1,350 Debit Accounts Receivable $1,350; credit Fees Income $1,350 The journal entry to record the payment of the monthly rent would include:

Multiple Choice

a debit to Rent Expense and a credit to Cash. a debit to Capital and a credit to Cash. a debit to Rent Expense and a credit to Capital. a debit to Rent Expense and a credit to Accounts Receivable. Agatha Panthis Landscape Architect Company earned $2,500 of revenue collecting $1,000 immediately and will collect the remaining amount in 30 days. The journal entry to record this transaction is:

rev: 12_08_2017_QC_CS-111818


Multiple Choice

Debit Fees Income $2,500; Credit Accounts Receivable $2,500 Debit Cash $1,000; Credit Fees Income $1,000 Debit Cash $1,000; Debit Accounts Receivable $1,500; Credit Fees Income $2,500 Debit Fees Income $2,500; Credit Cash $1,000; credit Accounts Receivable $1,500 Which of the following statements is CORRECT?

Multiple Choice

Some companies use the general ledger instead of a general journal. The general ledger contains the accounts that are used to prepare the financial statements. When entries are posted from the general journal to the general ledger, the account number is written in the Posting Reference column in the general ledger. When entries are posted from the general journal to the general ledger, the page number is written in the Posting Reference column in the general journal.


The accounts on the Trial Balance are always listed in the following order:

Multiple Choice

Assets, Liabilities, Equity, Revenue, Expense Assets, Equity, Expense, Liabilities, Revenue Expense, Revenue, Equity, Liabilities, Assets Assets, Expense, Liabilities, Equity, Revenue If the owner of the business wants to see both the debit and credit entry for a specific transaction, he would look in:

Multiple Choice

the ledger the chart of accounts the source document the journal On December 5, Honor Consulting Services issued a check to purchase $1,800 of office equipment. The journal entry to record this transaction is:


Multiple Choice

Office Equipment $ 1,800

Accounts Receivable

$ 1,800

________________________________________

Cash $ 1,800

Accounts Payable

$ 1,800

________________________________________

Office Equipment $ 1,800

Cash

$ 1,800

________________________________________


Cash $ 1,800

Office Equipment

$ 1,800

________________________________________

Which of the following statements is CORRECT?

Multiple Choice

If an error in a journal entry is discovered before the entry is posted to the general ledger, a journal entry should be made to correct the erroneous entry. If an error in a journal entry is discovered before the entry is posted to the general ledger, the error in the entry should be crossed out and the correct data written above it. All errors made in journal entries should be corrected by the preparation of a correcting journal entry. If an error in a journal entry is discovered before the entry is posted to the general ledger, the entry can simply be erased and replaced with the correct journal entry.


On December 1, the Accounts Receivable account had a $22,000 debit balance. During December the business earned $10,500 in revenue on account and collected $13,200 from its charge-account customers. After posting these transaction, the balance in the Accounts Receivable account on December 31 is:

Multiple Choice

a $24,700 credit balance. a $23,700 credit balance. a $19,300 debit balance. a $24,700 debit balance. Bertrand Inc. purchased some shop equipment for $4,500 in cash. By mistake, the journal entry debited the Office Equipment account rather than the Shop Equipment account. What correcting entry would be necessary?

Multiple Choice

Debit Shop Equipment $4,500; credit Office Equipment $4,500 Debit Office Equipment $4,500; credit Shop Equipment $4,500 Debit Cash $4,500; credit Shop Equipment $4,500


Debit Office Equipment $4,500; credit Cash $4,500 The general ledger accounts are usually arranged in the following order:

Multiple Choice

first the temporary accounts, then the permanent accounts. first the accounts with debit balances, then the accounts with credit balances. first the accounts used most often, then those used less frequently. first the balance sheet accounts, then the income statement accounts.

A company purchased equipment costing $15,000. They paid $1,000 right away and agreed to pay the balance in 30 days, the journal entry to record the purchase of equipment would include:

Multiple Choice

a debit to Equipment for $15,000, a credit to Cash for $1,000 and a credit to Accounts Payable for $14,000.


a debit to Equipment for $15,000 and a credit to Cash for $15,000. a debit to Equipment for $1,000 and a credit to Cash for $1,000. a debit to Equipment for $14,000 and a credit to Accounts Payable for $14,000. On December 10, Yummy Catering purchased a new oven costing $10,000. They issued a check a check for $2,000 and promised to pay the balance in 30 days. The journal entry to record this transaction is:

Multiple Choice

Equipment $ 2,000 Accounts Payable

$ 8,000

________________________________________

Equipment $ 8,000

Cash

$ 8,000

________________________________________


Equipment $ 8,000

Cash $ 2,000

Accounts Payable

$ 10,000

________________________________________

Equipment $ 10,000

Cash

$ 2,000

Accounts Payable

$ 8,000

________________________________________

Anna Conda Landscaping service received a bill for the utilities used during September. The bill will be paid in October. The journal entry to record the utility bill received is:


Multiple Choice

Debit Utilities Expense; Credit Accounts Payable

Debit Accounts Payable; Credit Cash Debit Utilities Expense; Credit Cash Debit Cash; Credit Utilities Expense The Cash account has a $15,000 debit balance. A $5,000 credit entry and a $7,000 debit entry are posted to the account. The final balance of the Cash account is:

Multiple Choice

a $13,000 debit balance. a $3,000 debit balance. a $27,000 debit balance. a $17,000 debit balance. Which of the following statements is CORRECT?

Multiple Choice


All errors made in journal entries should be corrected by the preparation of a correcting journal entry. If an error in a journal entry is discovered before the entry is posted to the general ledger, a journal entry should be made to correct the erroneous entry. If an error in a journal entry is discovered before the entry is posted to the general ledger, the error in the entry should be crossed out and the correct data written above it. If an error in a journal entry is discovered before the entry is posted to the general ledger, the entry can simply be erased and replaced with the correct journal entry. On December 1, the Accounts Receivable account had a $22,000 debit balance. During December the business earned $10,500 in revenue on account and collected $13,200 from its charge-account customers. After posting these transaction, the balance in the Accounts Receivable account on December 31 is:

Multiple Choice

a $24,700 debit balance. a $19,300 debit balance. a $23,700 credit balance.


a $24,700 credit balance. When an entry is made in the general journal,

Multiple Choice

the first account entered should be indented.

asset accounts should be indented. the accounts to be credited should be indented. liability, capital, and revenue accounts should be indented. When recording a business transaction into the journal, certain steps are followed. Identify the statement below that is CORRECT regarding the journalizing process.

Multiple Choice

All transactions are recorded first in the general ledger and then they are journalized in the journal. No dates are used in the journal. An explanation is indented and entered on the line underneath the last credit in the entry.


All credited accounts are listed first and then all debited accounts are indented and listed on the next lines. -----------------------------------------------------------------------------------------ACC 290 Week 4 Apply Connect Assignment (100% Correct) (With Excel File) FOR MORE CLASSES VISIT www.acc290genius.com

ACC 290 Week 4 Apply Connect Assignment

Complete the Week 4 Assignment in Connect.

Note: You have only 1 attempt available to complete assignments

1


Paula Judge owns Judge Creative Designs. The trial balance of the firm for January 31, 2019, the first month of operations, is shown below.

End-of-the-month adjustments must account for the following items:

a. Supplies were purchased on January 1, 2019; inventory of supplies on January 31, 2019, is $1,500.

b. The prepaid advertising contract was signed on January 1, 2019, and covers a four-month period.

c.

Rent of $2,000 expired during the month.


d. Depreciation is computed using the straight-line method. The equipment has an estimated useful life of 10 years with no salvage value.

Required:

1.

Complete the worksheet for the month.

2. Prepare an income statement, statement of owner’s equity, and balance sheet. No additional investments were made by the owner during the month.


3.

Journalize and post the adjusting entries.

Analyze

If the adjusting entries had not been made for the month, would net income be overstated or understated?

2

The trial balance of Neal Company as of January 31, 2019, after the company completed the first month of operations, is shown in the partial worksheet below.


Required:

2. Complete the worksheet by making the following adjustments: supplies on hand at the end of the month, $7,000; expired insurance, $6,900; depreciation expense for the period, $3,000.

Analyze:


How does the insurance adjustment affect Prepaid Insurance? -----------------------------------------------------------------------------------------ACC 290 Week 4 Apply: Connect® Exercise FOR MORE CLASSES VISIT www.acc290genius.com

ACC 290 Week 4 Apply: Connect® Exercise

Review the Knowledge Check in preparation for this assignment.

Complete the Week 4 Exercise in Connect®.

Note: You have only one attempt available to complete this assignment.

Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date.


A total of $3,700 in supplies was purchased during the year. By the end of the year, the company had used $2,200 of the supplies. The adjusting entry needed at the end of the year is:

Multiple Choice

debit Supplies $2,200; credit Supplies Expense $2,200 debit Supplies Expense $1,500; credit Supplies $1,500 debit Supplies Expense $2,200; credit Supplies $2,200 debit Supplies Expense $3,700; credit Supplies $3,700

On November 1, 2019, Peaches Consulting Service paid $4,800 for 12 months of advance rent on its office space. The correct adjusting entry on December 31, 2019, to show the amount of rent that had expired would include:

Multiple Choice

debit Rent Expense $400; credit Prepaid Rent $400 debit Rent Expense $800; credit Prepaid Rent $800


debit Prepaid Rent $4,000; credit Rent Expense $4,000 debit Rent Expense $4,800; credit Prepaid Rent $4,800 Equipment cost $36,000 and is expected to be useful for 5 years and have no salvage value. Under the straight-line method, monthly depreciation will be:

Multiple Choice

$12. $720. $600. $60. On October 25, 2019, the company paid $24,000 rent in advance for the six-month period (November 2019 through April 2020). On December 31, 2019, the adjustment for expired rent would include:

Multiple Choice

a $8,000 debit to Rent Expense. a $8,000 credit to Rent Expense. a $4,000 credit to Prepaid Rent.


a $24,000 credit to Cash. During its first year of business, XYZ Inc. purchased $1,600 of supplies. By the end of the year, only $500 of supplies remain in the supply cabinet. Determine the amount to be reported in the Supplies account in the Adjusted Trial Balance section of the worksheet prepared on December 31.

Multiple Choice

$2,100 $1,600 $1,100 $500 The adjusting entry to account for the expiration of prepaid advertising consists of:

Multiple Choice

a debit to Prepaid Advertising and a credit to Advertising Expense. a debit to Advertising Expense and a credit to Accumulated Depreciation.


a debit to Prepaid Advertising and a credit to Accumulated Depreciation. a debit to Advertising Expense and a credit to Prepaid Advertising. Which of the following statements is correct?

Multiple Choice

The cost of supplies used is reported on the statement of owner’s equity. The cost of supplies used represents an operating expense of the business. At the time of their acquisition, prepaid expenses are recorded in expense accounts. Accumulated Depreciation–Equipment is presented in the Liabilities section of a balance sheet. On a balance sheet, Accumulated Depreciation—Equipment is reported:

Multiple Choice

as a contra-asset on the Balance Sheet. as an expense on the Income Statement.


as a liability on the Income Statement. as owner’s equity on the Balance Sheet A consecutive, twelve-month accounting period is called a(n):

Multiple Choice

accrual year. accounting year. fiscal year. adjusted year. The adjustments made on the worksheet:

Multiple Choice

are recorded in the journal and then posted to the general ledger accounts. need not be entered in the journal or the ledger. are posted to the ledger but are not recorded in the journal. are recorded in the journal but are not posted to the ledger. ------------------------------------------------------------------------------------------


ACC 290 Week 4 Practice Connect Practice Assignment FOR MORE CLASSES VISIT www.acc290genius.com

ACC 290 Week 4 Practice Connect Practice Assignment

Complete the Week 4 Practice in Connect.

Note: You have unlimited attempts available to complete practice assignments.

attempt 1

1


On June 1, 2019, Cain Company, a new firm, paid $8,400 rent in advance for a seven-month period. The $8,400 was debited to thePrepaid Rent

On June 1, 2019, the firm bought supplies for $10,250. The $10,250 was debited to the Supplies An inventory of supplies at the end of June showed that items costing $5,960 were on hand.

On June 1, 2019, the firm bought equipment costing $72,900. The equipment has an expected useful life of 9 years and no salvage value. The firm will use the straight-line method of depreciation.

2

The completed worksheet for Cantu Corporation as of December 31, 2019, after the company had completed the first month of operation, appears below.

CANTU CORPORATION


Worksheet

Month Ended December 31, 2019

Trial Balance Adjusted Trial Balance Balance Sheet

Account Name Debit Debit

Cash 39,100 39,100

Adjustments Income Statement

Debit Credit Credit

39,100

Credit Debit Debit

Credit Credit


Accounts Receivable 6,500 6,500

Supplies 3,500 2,550

6,500

6,050 6,050

Prepaid Advertising 10,200 1,700 10,200 8,500

Equipment 42,500 42,500

42,500

Accumulated Depreciation—Equipment 850 850 850

Accounts Payable 6,500 6,500

6,500


Selena Cantu, Capital 54,500 54,500

Selena Cantu, Drawing 4,100 4,100

54,500

4,100

Fees Income 57,750

57,750 57,750

Supplies Expense 3,500 3,500

3,500

Advertising Expense 1,700 1,700

1,700

Depreciation Expense-Equipment 850 850

850


Salaries Expense 8,900

8,900

Utilities Expense 1,400

1,400

Totals 6,050 119,600 103,250

8,900

1,400

118,750 6,050 16,350 61,850

118,750 119,600 57,750

Net Income 41,400

57,750

41,400

57,750

-----------------------------------------------------------------------------------------ACC 290 Week 4 Practice: Connect® Knowledge Check FOR MORE CLASSES VISIT www.acc290genius.com

ACC 290 Week 4 Practice: Connect® Knowledge Check


Complete the Week 4 Knowledge Check in Connect®.

Note: You have unlimited attempts available to complete this practice assignment. The highest scored attempt will be recorded.

These assignments have earlier due dates, so plan accordingly.

Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date.

On a worksheet, a net loss is:

Multiple Choice

not recorded. recorded in the Balance Sheet Credit column. recorded in the Income Statement Debit column. recorded in the Balance Sheet Debit column. On December 31, Treats Catering Inc.’s trial balance shows a $1,000 balance in the Supplies account. However, a physical count of the


supplies determined that only $350 of supplies actually remain in the supply cabinet. Select the adjusting entry made on December 31, to record the amount of supplies that had been used during the year.

Multiple Choice

Supplies Expense………..

$

350

Supplies…………….

$

350

________________________________________

Supplies Expense………..

$

650

Supplies…………….

$

650

________________________________________

Supplies………..

$

350

Supplies Expense…………….

$

350


________________________________________

Supplies………..

$

650

Supplies Expense…………….

$

650

________________________________________

On January 1, 2019, Johnson Consulting purchased a truck for $18,000. The truck is expected to last 60 months and have no salvage value. Calculate the book value of the truck on December 31, 2020.

Multiple Choice

$3,600 $10,800 $14,400


$7,200

On October 25, 2019, the company paid $24,000 rent in advance for the six-month period (November 2019 through April 2020). On December 31, 2019, the adjustment for expired rent would include:

Multiple Choice

a $8,000 debit to Rent Expense. a $8,000 credit to Rent Expense. a $4,000 credit to Prepaid Rent. a $24,000 credit to Cash. Which of the following entries records the depreciation on equipment for the fiscal year-end adjustment?

Multiple Choice

Debit Depreciation; credit Depreciation Expense Debit Depreciation Expense; credit Accumulated Depreciation Debit Accumulated Depreciation; credit Depreciation Expense


Debit Depreciation Expense; credit Equipment On July 1, Sidney Consulting Services paid $18,000 for 12 months of advance rent on its office building. Select the adjusting entry made on December 31, to record the amount of rent that had expired during the year.

Multiple Choice

Rent Expense………..

$

Prepaid Rent…………….

9,000 $

9,000

________________________________________

Prepaid Rent………..

$

Rent Expense…………….

18,000

$

18,000

________________________________________

Rent Expense………..

$

10,500


Prepaid Rent…………….

$

10,500

________________________________________

Prepaid Rent………..

$

Rent Expense…………….

10,500

$

10,500

The adjusting entry to account for the expiration of prepaid insurance consists of:

Multiple Choice

a debit to Insurance Expense and a credit to Accumulated Depreciation. a debit to Insurance Expense and a credit to Prepaid Insurance. a debit to Accumulated Depreciation and a credit to Prepaid Insurance. a debit to Prepaid Insurance and a credit to Accumulated Depreciation.


The unadjusted net income on the income statement was $46,850. After journalizing and posting the adjusting entry for the $2,300 of supplies used during the year, the adjusted net income is:

Multiple Choice

$45,700.

$49,150. $46,850. $44,550. MacGyver Company bought equipment on January 3, 2019, for $52,000. At the time of purchase, the equipment was estimated to have a useful life of five years and a salvage value of $4,000. Using the straight-line method, the amount of one year’s depreciation is:

Multiple Choice

$10,400. $4,000. $1,200.


$9,600. Accumulated Depreciation, Equipment, is shown as:

Multiple Choice

an addition to expenses on the Income Statement. a deduction from assets on the Balance Sheet. an addition to assets on the Balance Sheet. a deduction of Capital on the Statement of Owner’s Equity. Accumulated Depreciation, Equipment, is shown as:

Multiple Choice

an addition to expenses on the Income Statement. a deduction from assets on the Balance Sheet.

an addition to assets on the Balance Sheet. a deduction of Capital on the Statement of Owner’s Equity. Which of the following statements is correct?


Multiple Choice

The cost of supplies used is reported on the statement of owner’s equity. The cost of supplies used represents an operating expense of the business. At the time of their acquisition, prepaid expenses are recorded in expense accounts. Accumulated Depreciation–Equipment is presented in the Liabilities section of a balance sheet. On a worksheet, the adjusted balance of the Supplies account is extended to:

Multiple Choice

the Balance Sheet Debit column. the Income Statement Debit column. the Income Statement Credit column. the Balance Sheet Credit column. Which of the following need not be completed separately if a worksheet is prepared?


Multiple Choice

a balance sheet a trial balance a statement of owner’s equity an income statement The adjustments made on the worksheet:

Multiple Choice

are recorded in the journal and then posted to the general ledger accounts. need not be entered in the journal or the ledger. are posted to the ledger but are not recorded in the journal. are recorded in the journal but are not posted to the ledger. If the prepaid expenses are not adjusted, assets on the balance sheet:

Multiple Choice

will not be affected.


may be either overstated or understated. will be overstated. will be understated. The unadjusted net income on the income statement was $23,760. After journalizing and posting the adjusting entries for the $1,620 of supplies used and $3,700 of depreciation on the company’s equipment for the year, the adjusted net income is:

Multiple Choice

$25,840. $29,080. $21,680. $18,440.

The total assets on the balance sheet was $128,800 before journalizing and posting the adjusting entries for $800 of expired insurance, $2,400 of expired rent and $900 of depreciation. What are the total assets after journalizing and posting the adjusting?

Multiple Choice


$128,800. $126,500. $124,700. $132,900. A total of $2,800 in supplies was purchased during the year. At the end of the year $700 of the supplies were left. The adjusting entry needed at the end of the year is:

Multiple Choice

debit Supplies $2,100; credit Supplies Expense $2,100 debit Supplies Expense $2,100; credit Supplies $2,100 debit Supplies Expense $2,800; credit Supplies $2,800 debit Supplies Expense $700; credit Supplies $700 Which of the following statements is not correct?

Multiple Choice

Salvage value is computed by subtracting the accumulated depreciation from the cost of a long-term asset.


Buildings and trucks are examples of long-term assets. The book value of a long-term asset is reduced each year as depreciation is recorded. Generally accepted accounting principles require that the original cost of a long-term asset continue to appear in the asset account until the disposition of the asset. Equipment cost $36,000 and is expected to be useful for 5 years and have no salvage value. Under the straight-line method, monthly depreciation will be:

Multiple Choice

$12. $720. $600. $60. The balance in the Prepaid Rent account before adjustment at the end of the year is $12,000, which represents 12 months rent paid on November 1. The adjusting entry required on December 31 to show the amount of rent that had expired is:

Multiple Choice


Rent Expense………..

$

Prepaid Rent…………….

1,000 $

1,000

________________________________________

Rent Expense………..

$

12,000

Cash…………….

$

12,000

________________________________________

Rent Expense………..

$

Prepaid Rent…………….

2,000

$

2,000

________________________________________

Prepaid Rent………..

$

12,000


Rent Expense…………….

$

12,000

________________________________________

If long-term assets are not adjusted, expenses on the income statement:

Multiple Choice

may be either overstated or understated. will be overstated. will not be affected. will be understated. If a worksheet is prepared at the end of the accounting year,

Multiple Choice

the financial statements are prepared using the worksheet data. preparation of the financial statements is not required. the adjusting entries do not need to be journalized.


only a balance sheet is required. B. Consulting purchased a machine for $6,000 on August 1, 2019. The company expects the useful life of the machine to be 5 years and no salvage value is expected. If the company uses the straight-line method to depreciate the machine, what will be the depreciation adjustment for the year ending December 31, 2019?

Multiple Choice

Debit Depreciation Expense $500 and Credit Accumulated Depreciation $500. Debit Depreciation Expense $500 and Credit Equipment $500. Debit Depreciation Expense $400 and Credit Accumulated Depreciation $400. Debit Accumulated Depreciation $100 and Credit Depreciation Expense $100.

A consecutive, twelve-month accounting period is called a(n):

Multiple Choice


accrual year. accounting year. fiscal year. adjusted year. The book value of long-term assets is reported on:

Multiple Choice

the statement of owner’s equity. the balance sheet. the worksheet. the income statement. On a balance sheet, Accumulated Depreciation—Equipment is reported:

Multiple Choice

as a contra-asset on the Balance Sheet. as an expense on the Income Statement. as a liability on the Income Statement.


as owner’s equity on the Balance Sheet

Adjusting Entries are:

Multiple Choice

not required. corrections of errors. updating entries for previously unrecorded expenses or revenues. will always affect cash. On a worksheet, the adjusting entry to account for depreciation of equipment consists of:

Multiple Choice

a debit to Depreciation Expense and a credit to Equipment. a debit to Accumulated Depreciation and a credit to Equipment. a debit to Depreciation Expense and a credit to Accumulated Depreciation.


a debit to Accumulated Depreciation and a credit to Depreciation Expense. On a worksheet, the adjusted balance of the revenue account Fees Income would be extended to:

Multiple Choice

the Balance Sheet Debit column. the Income Statement Credit column. the Income Statement Debit column. the Balance Sheet Credit column. -----------------------------------------------------------------------------------------ACC 290 Week 5 Apply Connect Assignment (100% Correct) (with Excel File) FOR MORE CLASSES VISIT www.acc290genius.com

This Tutorial contains an Excel File which can be used for any values

ACC 290 Week 5 Apply Connect Assignment


Note: You have only 1 attempt available to complete assignments

There are 3 Questions in this Tutorial (details given below, our excel sheet can be used for any values)

1 On December 31, after adjustments, Gonzalez Company’s ledger contains the following account balances:

101 Cash $ 30,200 Dr. 111 Accounts Receivable 16,100 Dr. 121 Supplies 2,300 Dr. 131 Prepaid Rent 38,900 Dr. 141 Equipment 47,000 Dr. 142 Accumulated Depreciation—Equip. 1,150 Cr. 202 Accounts Payable 6,800 Cr.


301 Emilio Gonzalez, Capital (12/1/2019) 48,620 Cr. 302 Emilio Gonzalez, Drawing 6,500 Dr. 401 Fees Income 120,080 Cr. 511 Advertising Expense 4,100 Dr. 514 Depreciation Expense—Equip. 830 Dr. 517 Rent Expense 2,900 Dr. 519 Salaries Expense 21,800 Dr. 523 Utilities Expense 6,020 Dr.

Required:

Journalize the closing entries in the general journal. Post the closing entries to the general ledger accounts. Hint: Be sure to enter beginning balances. Analyze:

What is the balance of the Salaries Expense account after closing entries are posted?


2 A partially completed worksheet for At Home Pet Grooming Service, a firm that grooms pets at the owner’s home, follows.

Required:

Complete the worksheet. Record the adjusting entries in the general journal (transactions 1-3). Record the closing entries in the general journal (transactions 4-7). Post the adjusting entries and the closing entries to the general ledger accounts. Hint: Be sure to enter beginning balances. Prepare a post-closing trial balance. Analyze:

What total debits were posted to the general ledger to complete all closing entries for the month of December?


3. A completed worksheet for The King Group is given below.

The King Group Worksheet Month Ended December 31, 2019

Required: Record the adjusting entries in the general journal (transactions 1-3). Record the closing entries in the general journal (transactions 4-7). Post the adjusting entries and the closing entries to the general ledger accounts. Hint: Be sure to enter beginning balances. Prepare a post-closing trial balance. Analyze: How many accounts are listed in the adjusted and post-closing trial balance section? -----------------------------------------------------------------------------------------ACC 290 Week 5 Apply: ConnectÂŽ Exercise FOR MORE CLASSES VISIT www.acc290genius.com


ACC 290 Week 5 Apply: Connect® Exercise

Review the Knowledge Check in preparation for this assignment.

Complete the Week 5 Exercise in Connect®.

Note: You have only one attempt available to complete this assignment.

Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date

Use the following account balances from the adjusted trial balance of Gees Catering:

Account Debit Balance Credit Balance

Cash

10,000

Accounts Payable

2,000


Gees, Drawing 1,000 Gees, Capital

18,000

Fees Revenue

10,000

Salary Expense

Rent Expense

7,000

6,000

Supplies Expense

6,000

________________________________________

Select the correct closing entry that Gees Catering would make to close their revenue account(s) at the end of the accounting period.

Multiple Choice

Income Summary $

10,000


Fees Revenue

$

10,000

________________________________________

Gees, Capital $ 10,000 Fees Revenue

$

10,000

________________________________________

Fees Revenue $

10,000

Income Summary

$

10,000

________________________________________

Fees Revenue $

Gees, Capital

10,000

$

10,000

________________________________________


After the closing entries are posted to the ledger, each expense account will have:

Multiple Choice

a debit balance. a credit balance. a negative balance. a zero balance. Which of the following accounts is not closed?

Multiple Choice

Cash Fees Income Rent Expense Joan Wilson, Drawing After the closing entries are posted to the ledger, each revenue account will have:


Multiple Choice

a zero balance. a debit balance. a credit balance. either a debit or a credit balance. A post-closing trial balance could include all of the following accounts except the:

Multiple Choice

owner’s capital account. Cash account. Accounts Receivable account. Fees Income account. Which of the following accounts has a normal debit balance?

Multiple Choice

Accounts Receivable


Accounts Payable Fees Income Stark, Capital Which of the following accounts has a normal credit balance?

Multiple Choice

Accounts Payable Accounts Receivable Supplies Expense Stark, Drawing Which of the following statements is correct?

Multiple Choice

The Balance Sheet section of the worksheet contains the data that is used to make closing entries. The balance of the owner’s drawing account will appear on the postclosing trial balance. Closing entries are entered directly on the worksheet.


Preparation of the post-closing trial balance is the last step in the endof-period routine. Information in the financial statements provides answers to many questions, including:

Multiple Choice

How much do customers owe the business? What are the business’ current and long term plans for expansion? Has the business achieved its net income goal for the year? Has there been a lot of employee turnover? After the transactions have been posted, the next step in the accounting cycle is to:

Multiple Choice

prepare the financial statements. prepare the post-closing trial balance. prepare the worksheet. journalize and post the adjusting entries. ------------------------------------------------------------------------------------------


ACC 290 Week 5 Practice Connect Practice Assignment FOR MORE CLASSES VISIT www.acc290genius.com

ACC 290 Week 5 Practice Connect Practice Assignment

Complete the Week 5 Practice in Connect.

Note: You have unlimited attempts available to complete practice assignments.

attempt 1

1


Consumer Research Associates, owned by Gloria Johnson, is retained by large companies to test consumer reaction to new products. On January 31, 2019, the firm’s worksheet showed the following adjustments data: (a) supplies used, $4,680; (b) expired rent, $26,000; and (c) depreciation on office equipment, $9,160. The balances of the revenue and expense accounts listed in the Income Statement section of the worksheet and the drawing account listed in the Balance Sheet section of the worksheet are given below:

REVENUE AND EXPENSE ACCOUNTS

401

Fees Income $

200,000

Cr.

511

Depr. Expense—Office Equipment

514

Rent Expense

517

Salaries Expense

99,000 Dr.

520

Supplies Expense

4,680 Dr.

26,000 Dr.

9,160 Dr.


523

Telephone Expense

2,700 Dr.

526

Travel Expense

20,780 Dr.

529

Utilities Expense

2,500 Dr.

DRAWING ACCOUNT

302

Gloria Johnson, Drawing

22,000 Dr.

Required:

Record the adjusting entries in the general journal (transactions 1-3).


Record the closing entries in the general journal (transactions 4-7).

2

A partially completed worksheet for At Home Pet Grooming Service, a firm that grooms pets at the owner’s home, follows.

Required:

Complete the worksheet.


Record the adjusting entries in the general journal (transactions 1-3).

Record the closing entries in the general journal (transactions 4-7).

Post the adjusting entries and the closing entries to the general ledger accounts. Hint: Be sure to enter beginning balances.

Prepare a post-closing trial balance.

Analyze:

What total debits were posted to the general ledger to complete all closing entries for the month of December?


3

On December 31, 2019, the ledger of Lopez Company contained the following account balances:

Cash $

66,000 Maria Lopez, Drawing

Accounts Receivable

$

5,800 Fees Income

52,000

107,500

Supplies

4,200 Depreciation Expense

5,500

Equipment

52,000 Salaries Expense

34,000


Accumulated Depreciation 6,000

5,000 Supplies Expense

Accounts Payable

6,000 Telephone Expense

Maria Lopez, Capital 9,300

121,500

5,200

Utilities Expense

4

The ledger accounts of AXX Internet Company appear as follows on March 31, 2019:

ACCOUNT NO.

ACCOUNT BALANCE


101

Cash $

40,000

111

Accounts Receivable

121

Supplies

131

Prepaid Insurance

141

Equipment

142

Accumulated Depreciation—Equipment

202

Accounts Payable

301

Aretha Hinkle, Capital

65,000

302

Aretha Hinkle, Drawing

6,500

401

Fees Income

29,910

5,300

12,500

59,000

7,000

187,230

20,660


510

Depreciation Expense—Equipment

511

Insurance Expense

514

Rent Expense

517

Salaries Expense

83,000

518

Supplies Expense

2,800

519

Telephone Expense

3,400

523

Utilities Expense

4,700

5,700

16,500

All accounts have normal balances.

Required:

10,580


Prepare the closing entries.

Post the transactions in to the appropriate ledger accounts. Hint: Be sure to enter beginning balances.

5

The Income Summary and Linda Carter, Capital accounts for Carter Production Company at the end of its accounting period follow.

Income Summary

Account No. 399


Balance

Date Description

Debit Credit Debit Credit

2019

Dec. 31

Closing

134,000

31

Closing

71,800

62,200

31

Closing

62,200

0

Linda Carter, Capital Account No. 301

Balance

134,000


Date Description

Debit Credit Debit Credit

2019

Dec. 1

240,000

31

Closing

31

Closing

62,200

22,000

240,000

302,200

280,200

6

On December 31, the Income Summary account of Madison Company has a debit balance of $111,000 after revenue of $117,000 and expenses of $228,000 were closed to the account. Madison Wells, Drawing has a debit balance of $12,000 and Madison Wells, Capital has a credit balance of $174,000.


Required:

Record the journal entries necessary to complete closing the accounts.

What is the new balance of Madison Wells, Capital?

attempt 2


1

The ledger accounts of AXX Internet Company appear as follows on March 31, 2019:

ACCOUNT NO.

ACCOUNT BALANCE

101

Cash $

40,000

111

Accounts Receivable

121

Supplies

131

Prepaid Insurance

141

Equipment

29,910

5,300

12,500

59,000


142

Accumulated Depreciation—Equipment

202

Accounts Payable

301

Aretha Hinkle, Capital

65,000

302

Aretha Hinkle, Drawing

6,500

401

Fees Income

510

Depreciation Expense—Equipment

511

Insurance Expense

514

Rent Expense

517

Salaries Expense

83,000

518

Supplies Expense

2,800

20,660

7,000

187,230

5,700

16,500

10,580


519

Telephone Expense

3,400

523

Utilities Expense

4,700

All accounts have normal balances.

Required:

Prepare the closing entries.

Post the transactions in to the appropriate ledger accounts. Hint: Be sure to enter beginning balances.


2

A partially completed worksheet for At Home Pet Grooming Service, a firm that grooms pets at the owner’s home, follows.

Required:

Complete the worksheet.

Record the adjusting entries in the general journal (transactions 1-3).

Record the closing entries in the general journal (transactions 4-7).


Post the adjusting entries and the closing entries to the general ledger accounts. Hint: Be sure to enter beginning balances.

Prepare a post-closing trial balance.

Analyze:

What total debits were posted to the general ledger to complete all closing entries for the month of December?

3


The Income Summary and Linda Carter, Capital accounts for Carter Production Company at the end of its accounting period follow.

Income Summary

Account No. 399

Balance

Date Description

Debit Credit Debit Credit

2019

Dec. 31

Closing

134,000

31

Closing

71,800

62,200

31

Closing

62,200

0

134,000


Linda Carter, Capital Account No. 301

Balance

Date Description

Debit Credit Debit Credit

2019

Dec. 1

240,000

31

Closing

31

Closing

4

62,200

22,000

240,000

302,200

280,200


On December 31, the Income Summary account of Madison Company has a debit balance of $111,000 after revenue of $117,000 and expenses of $228,000 were closed to the account. Madison Wells, Drawing has a debit balance of $12,000 and Madison Wells, Capital has a credit balance of $174,000.

Required:

Record the journal entries necessary to complete closing the accounts.

What is the new balance of Madison Wells, Capital?


5

Consumer Research Associates, owned by Gloria Johnson, is retained by large companies to test consumer reaction to new products. On January 31, 2019, the firm’s worksheet showed the following adjustments data: (a) supplies used, $4,680; (b) expired rent, $26,000; and (c) depreciation on office equipment, $9,160. The balances of the revenue and expense accounts listed in the Income Statement section of the worksheet and the drawing account listed in the Balance Sheet section of the worksheet are given below:

REVENUE AND EXPENSE ACCOUNTS

401

Fees Income $

200,000

511

Depr. Expense—Office Equipment

514

Rent Expense

26,000 Dr.

Cr.

9,160 Dr.


517

Salaries Expense

99,000 Dr.

520

Supplies Expense

4,680 Dr.

523

Telephone Expense

2,700 Dr.

526

Travel Expense

20,780 Dr.

529

Utilities Expense

2,500 Dr.

DRAWING ACCOUNT

302

Gloria Johnson, Drawing

Required:

22,000 Dr.


Record the adjusting entries in the general journal (transactions 1-3).

Record the closing entries in the general journal (transactions 4-7).

6

On December 31, 2019, the ledger of Lopez Company contained the following account balances:

Cash $

66,000 Maria Lopez, Drawing

Accounts Receivable

Supplies

$

5,800 Fees Income

4,200 Depreciation Expense

52,000

107,500

5,500


Equipment

52,000 Salaries Expense

Accumulated Depreciation 6,000

34,000

5,000 Supplies Expense

Accounts Payable

6,000 Telephone Expense

Maria Lopez, Capital 9,300

121,500

5,200

Utilities Expense

-----------------------------------------------------------------------------------------ACC 290 Week 5 Practice: Connect® Knowledge Check FOR MORE CLASSES VISIT www.acc290genius.com

ACC 290 Week 5 Practice: Connect® Knowledge Check

Complete the Week 5 Knowledge Check in Connect®.


Note: You have unlimited attempts available to complete this practice assignment. The highest scored attempt will be recorded.

These assignments have earlier due dates, so plan accordingly.

Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date.

One purpose of closing entries is to zero out the balances in the:

Multiple Choice

expense and capital accounts.

asset and liability accounts. revenue and expense accounts. liability and capital accounts.

Identify the accounts below that are ALL classified as temporary accounts.


Multiple Choice

Owner’s Drawing, Owner’s Capital, Income Summary Accounts Receivable, Depreciation Expense, Fees Income Wages Expense, Accumulated Depreciation, Fees Income Owner’s Drawing, Depreciation Expense, Income Summary The first two closing entries to the Income Summary account indicate a debit of $47,000 and a credit of $41,000. The third closing entry would be:

Multiple Choice

debit Income Summary $47,000; credit Capital $47,000 debit Income Summary $41,000; credit Expenses $41,000 debit Capital $6,000; credit Income Summary $6,000 debit Income Summary $6,000; credit Drawing $6,000 Which of the following statements is not correct?

Multiple Choice


The balance of the owner’s capital account on the adjusted trial balance will usually be different than that reported on the postclosing trial balance. The audit trail should be used to trace data through the accounting records to find and correct errors. If the post-closing trial balance does not balance, there are errors in the accounting records. The balance of the owner’s capital account, as reflected on the postclosing trial balance, will match the amount reported on the income statement. After the closing entries are posted to the ledger, each revenue account will have:

Multiple Choice

a debit balance. either a debit or a credit balance. a credit balance. a zero balance. The first two closing entries to the Income Summary account indicate a debit of $53,000 and a credit of $64,000. The third closing entry would be:


Multiple Choice

debit Capital $11,000; credit Income Summary $11,000. debit Income Summary $11,000; credit Capital $11,000. debit Income Summary $11,000; credit Drawing $11,000. debit Revenue $64,000; credit Expenses $53,000. Listed below in random order are the steps in the accounting cycle.

(1) prepare the financial statements

(2) post the journal entries to the ledger

(3) record journal entries

(4) prepare a trial balance

What is the proper order of these steps?

Multiple Choice


(2), (3), (4), (1) (3), (2), (4), (1) (4), (3), (2), (1) (3), (2), (1), (4) Information in the financial statements provides answers to many questions, including:

Multiple Choice

Has there been a lot of employee turnover? How much do customers owe the business? Has the business achieved its net income goal for the year? What are the business’ current and long term plans for expansion?

Which of the following accounts is a permanent account?

Multiple Choice

Supplies


Fees Income Owner’s drawing Supplies Expense If a business has a net loss for a fiscal period, the journal entry to close the Income Summary account is:

Multiple Choice

a debit to Capital and a credit to Income Summary. a debit to Income Summary and a credit to Fees Income. a debit to Capital and a credit to Drawing. a debit to Income Summary and a credit to Capital. Use the following account balances from the adjusted trial balance of Gees Catering:

Account Debit Balance Credit Balance

Cash

10,000

Accounts Payable

2,000


Gees, Drawing 1,000 Gees, Capital

18,000

Fees Revenue

Salary Expense

Rent Expense

Supplies Expense

10,000

7,000

6,000

6,000

________________________________________

What is the amount that Gees Consulting would report as the ending balance in the R. Gees, Capital account at the end of the year?

Multiple Choice

$26,000 $28,000


$ 8,000 $18,000 The entry to transfer a net loss to the owner’s capital account would include:

Multiple Choice

a debit to the Capital account and a credit to Cash. a debit to Income Summary and a credit to Capital. a debit to the Capital account and a credit to Income Summary. a debit to the Capital account and a credit to the Drawing account.

Use the following account balances from the adjusted trial balance of Gees Catering:

Account Debit Balance Credit Balance

Cash

10,000


Accounts Payable

2,000

Gees, Drawing 1,000 Gees, Capital

18,000

Fees Revenue

10,000

Salary Expense

Rent Expense

7,000

6,000

Supplies Expense

6,000

Select the correct closing entry that Gees Catering would make to close the owner’s withdrawal account at the end of the accounting period.

Multiple Choice

Gees, Drawing $ 1,000 Income Summary

$

1,000


________________________________________

Income Summary $

Gees, Drawing

1,000

$

1,000

________________________________________

Gees, Drawing $ 1,000

Gees, Capital

$

1,000

________________________________________

Gees, Capital $ 1,000 Gees, Drawing

$

1,000

________________________________________

The first step in the closing process is to close:


Multiple Choice

the expense account(s). the capital account. the drawing account. the revenue account(s). Which of the following statements is correct?

Multiple Choice

Closing entries are entered directly on the worksheet. The Balance Sheet section of the worksheet contains the data that is used to make closing entries. Preparation of the post-closing trial balance is the last step in the endof-period routine. The balance of the owner’s drawing account will appear on the postclosing trial balance. Use the following account balances from the adjusted trial balance of ABC Consulting:


Account Debit Balance Credit Balance

Cash

20,500

Accounts Payable

2,000

Conway, Drawing 600 Conway, Capital

13,000

Fees Revenue

18,000

Salary Expense

Rent Expense

2,600

3,000

Supplies Expense

Advertising Expense

1,900

800

________________________________________


What is the amount that ABC Consulting would report as the ending balance in the B. Conway, Capital account at the end of the year?

Multiple Choice

$22,100. $3,900 $31,000. $13,000. Trial balances are prepared in a certain order. Given the choices below, which one depicts the trial balances in the correct order in which they would be prepared?

Multiple Choice

post-closing trial balance, adjusted trial balance, trial balance. trial balance, adjusted trial balance, post-closing trial balance. adjusted trial balance, trial balance, post-closing trial balance. trial balance, post-closing trial balance, adjusted trial balance. The asset, liability, and owner’s capital accounts appear on all of the following except the:


Multiple Choice

post-closing trial balance. balance sheet. income statement. worksheet. Which of the following statements is not correct?

Multiple Choice

The owner’s drawing account is closed to the Income Summary account. The Income Summary account is used only at the end of an accounting period to help with the closing procedure. The Income Summary account is a temporary owner’s equity account. Before the Income Summary account is closed, its balance represents the net income or net loss for the accounting period. The revenue account Fees Income is closed by:

Multiple Choice


debiting Income Summary and crediting Fees Income. debiting Cash and crediting Fees Income. debiting Fees Income and crediting Income Summary. debiting the owner’s capital account and crediting Fees Income. After the worksheet has been completed, the next step in the accounting cycle is to:

Multiple Choice

prepare the post-closing trial balance. post the closing entries. prepare the financial statements. journalize the closing entries. A post-closing trial balance could include all of the following accounts except the:

Multiple Choice

owner’s capital account.


Accounts Receivable account. Cash account. Fees Income account. All of the following accounts will appear on the post-closing trial balance except:

Multiple Choice

Depreciation Expense Capital Land Accounts Payable Which of the following entries records the closing of Penny Pincher, Drawing at the end of the accounting period?

Multiple Choice

Debit Penny Pincher, Drawing; credit Penny Pincher, Capital Debit Income Summary; credit Penny Pincher, Drawing Debit Penny Pincher, Capital; credit Penny Pincher, Drawing


Debit Penny Pincher, Capital; credit Income Summary All of the following accounts will appear on the post-closing trial balance except:

Multiple Choice

Accumulated Depreciation-Equipment. Depreciation Expense-Equipment. Equipment. Accounts Payable. Which of the following accounts will not normally have a zero balance after the closing entries have been posted?

Multiple Choice

Fees Income Capital Rent Expense Income Summary Which of the following accounts has a normal credit balance?


Multiple Choice

Stark, Drawing Accounts Payable Supplies Expense Accounts Receivable Use the following account balances from the adjusted trial balance of ABC Consulting:

Account Debit Balance Credit Balance

Cash

20,500

Accounts Payable

2,000

Conway, Drawing 600 Conway, Capital Fees Revenue

13,000 18,000


Salary Expense

Rent Expense

2,600

3,000

Supplies Expense

Advertising Expense

1,900

800

________________________________________

Select the correct closing entry that ABC Consulting would make to close the income summary account at the end of the accounting period.

Multiple Choice

debit Income Summary $9,700 and credit B. Conway, Capital for $9,700. debit B. Conway, Capital $18,000 and credit Income Summary for $18,000.


debit B. Conway, Capital $9,700 and credit Income Summary for $9,700. debit B. Conway, Capital $600 credit B. Conway, Drawing for $600. Use the following account balances from the adjusted trial balance of ABC Consulting:

Account Debit Balance Credit Balance

Cash

20,500

Accounts Payable

2,000

Conway, Drawing 600 Conway, Capital

13,000

Fees Revenue

Salary Expense

Rent Expense

18,000

2,600

3,000


Supplies Expense

Advertising Expense

1,900

800

________________________________________

Select the correct closing entry that ABC Consulting would make to close their expense account(s) at the end of the accounting period.

Multiple Choice

debit B. Conway, Capital $8,300 and credit Salary Expense $2,600; credit Rent Expense $3,000; credit Supplies Expense $1,900; Advertising Expense $800. debit Income Summary $8,300 and credit B. Conway, Capital for $8,300. debit Salary Expense $2,600; debit Rent Expense $3,000; debit Supplies Expense $1,900; debit Advertising Expense $800 and credit Income Summary $8,300. debit Income Summary $8,300 and credit Salary Expense $2,600; credit Rent Expense $3,000; credit Supplies Expense $1,900; Advertising Expense $800.


The entry to close the Income Summary account may include:

Multiple Choice

a debit to Income Summary and a credit to the owner’s capital account. a debit to Income Summary and a credit to the owner’s drawing account. a debit to Cash and a credit to Income Summary. a debit to Income Summary and a credit to Cash. ------------------------------------------------------------------------------------------

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