MGAB01H3 Lecture Notes - Lecture 6: Deferral, Trial Balance, Balance Sheet

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ceruleanjackal228

24 Oct 2017

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MGAB01H3 Full Course Notes

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Single step: multiple step, classified income statement. Unadjusted trial balance: all accounts with ending balances. 5 categories: adjusting entries, post to the t accounts, create an adjusted trial balance, audit committee approves, shareholders. Cash basis: used to record the actions in phase 1. Accrual basis: the 5 adjustments to make sure that the cash basis is fulfilled by the requirements of. If you make a mistake and don"t accrue an expense, most likely the error will have an opposite effect in the next year and self-correct itself at the end of the second year. Option b: deferred revenue (unearned revenue) Sample company has 100 employees that get paid , 000/week, paid on friday for the weeks work. Total = 100 , 000 = , 000 ( 3 5) = , 000. Assume sample company did not accrue one the salaries expense at year end.

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The expense account, Salaries Expense, has an unadjusted balanceof $151,000 on Thursday, December 31,2017.

The company operates five days a week with a daily payroll of$4,000. Employees are paid every Saturday for the workweek justcompleted (Monday through Friday). Determine the correct endingbalance in Salaries Payable and Salaries Expense after the correctadjusting entry is made at year end:

	A.	Salaries Payable SalariesExpense $4,000 $155,000
	B.	SalariesPayable SalariesExpense $4,000 $147,000
	C.	SalariesPayable SalariesExpense $16,000 $16,000
	D.	SalariesPayable SalariesExpense $16,000 $135,000
	E.	SalariesPayable SalariesExpense $16,000 $167,000

1 points

QUESTION 7

Answer the following statements as true or false, then selectthe correct multiple -choice answer:

1. If dividends are declared during the year thecompany would close the dividend account by debiting retainedearnings and crediting the dividend account.

2. A company that forgets to recognizedepreciation for the year understates its income and assets.

3. Prepaid insurance expense will havea zero balance on the after closing trial balance.

4. Retained earnings on an adjustedtrial balance is the beginning retained earnings for theperiod.

	A.	True, False, False, False
	B.	False, True, True, False
	C.	True, False, False, True
	D.	False, True, True, True
	E.	True, True, False, False

1 points

QUESTION 8

Mark each of these items as an accrued asset, accrued liability,deferred expense or deferred revenue, then select the correctmultiple-choice answer.

________ Interest of $500 on a notereceivable was earned at year âend, although collection of theinterest is not due until the following year.

________ At year-end, cash of $1,000 wascollected for a job to be performed in the following year.

________ Office supplies were purchasedduring the year for $700, and $100 of them remained on hand atyear-end.

________ At year-end, wages payable of $2,900had not been recorded or paid.

	A.	Accrued Asset, Accrued Liability, Deferred Revenue, DeferredExpense
	B.	Accrued Asset, Deferred Revenue, Deferred Expense, AccruedLiability
	C.	Deferred Revenue, Deferred Expense, Accrued Asset, AccruedLiability
	D.	Deferred Expense, Accrued Asset, Accrued Liability, DeferredRevenue
	E.	Deferred Revenue, Accrued Liability, Accrued Asset, DeferredExpense

violetraccoon987

PLEASE answer number 2 (worksheet) I am really struggling with it.

Below is the unadjusted trial balance for Walton Anvils as of December 31, 2016, and the data for the adjustments. There is also an Excel Template for this problem that you may download and use (or you may use your own).

Walton Anvils
Unadjusted Trial Balance
December 31, 2016
	Balance
Account Title	Debt	Credit
Cash	$ 16,900.00
Accounts Receivable	17,500
Prepaid Rent	2,500
Office Supplies	1,900
Equipment	23,000
Accumulated Depreciation - Equipment		$ 7,000.00
Accounts Payable		6,200.00
Salaries Payable
Unearned Revenue		5,600.00
Common Stock		28,000.00
Retained Earnings		1,600.00
Dividends	4,500
Service Revenue		20,800.00
Salaries Expense	2,900
Rent Expense
Depreciation Expense - Equipment
Supplies Expense
Total	$ 69,200.00	$ 69,200.00

Adjustment Data

a. Unearned revenue still unearned at December 31, 2016	$1,800
b. Prepaid rent still in force at December 31, 2016	$2,300
c. Office supplies used	$1,400
d. Depreciation	$380
e. Accrued Salaries Expense at December 31, 2016	$210

Requirements

1.Open T-accounts using the balances in the unadjusted trial balance.

2.Complete the worksheet for the year ended December 31, 2016.

3.Prepare the adjusting entries and post to the T-accounts.

4.Prepare the adjusted trial balance.

5.Prepare the income statement, the statement of retained earnings, and the classified balance sheet in report form.

6.Prepare the closing entries and post to the T-accounts.

7.Prepare a post-closing trial balance.

8.Calculate the current ratio for the company.

brownmammoth184

Problem 3-4 (Part Level Submission)

The trial balance of Oriole Fashion Center contained thefollowing accounts at November 30, the end of the companyâs fiscalyear.

ORIOLE FASHION CENTER TRIAL BALANCE NOVEMBER 30, 2017
	Debit	Credit
Cash	$33,780
Accounts Receivable	37,420
Inventory	48,720
Supplies	9,220
Equipment	140,440
Accumulated Depreciation-Equipment		$26,720
Notes Payable		54,720
Accounts Payable		52,220
Common Stock		93,720
Retained Earnings		11,720
Sales Revenue		766,000
Sales Returns and Allowances	4,200
Cost of Goods Sold	495,400
Salaries and Wages Expense	138,040
Advertising Expense	27,760
Utilities Expenses	15,960
Maintenance and Repairs Expense	12,100
Delivery Expense	16,700
Rent Expense	25,360
Totals	$1,005,100	$1,005,100

Adjustment data:

1.		Supplies on hand totaled $5,220.
2.		Depreciation is $17,040 on the equipment.
3.		Interest of $12,030 is accrued on notes payable on November30.

Other data:

1.		Salaries expense is 70% selling and 30% administrative.
2.		Rent expense and utility expenses are 80% selling and 20%administrative.
3.		$30,000 of notes payable are due for payment next year.
4.		Maintenance and repairs expense is 100% administrative.

a) Journalize the adjusting transactions

b) Prepare an adjusted trial balance

c1) Prepare a multi-step Income statement

burgundyrhinoceros875

MGAB01H3 Lecture Notes - Lecture 6: Deferral, Trial Balance, Balance Sheet

MGAB01H3 Full Course Notes

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