MGAB01H3 Study Guide - Midterm Guide: 6 Years, Retained Earnings, Income Statement

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turquoisegnu128

16 Oct 2018

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True or false questions: debits are used to record increases in assets, dividends and expenses, the process of recording transactions in a journal is called posting. If the accountant failed to make the end of period adjustment to remove from the prepaid. Expense account the amount of expenses incurred, the omission would cause an overstatement of net income. Multiple choice questions: joe boxling"s company had a retained earnings balance of ,400 on june 30 and. Withdrawals for the month of july were ,200. What is the total amount of expenses during october: ,000, ,500, ,000, ,500, ,700, time periods covered by financial statements are called, seasonal periods, fiscal years, operating cycles, accounting periods, natural business years. Mgab01 financial accounting i 2014 fall: the journal entry to record the completion of legal work for a client on credit and billing the client ,700 for the services rendered would be, accounts receivable. Legal fees earned: legal fees earned, accounts receivable.

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TRUE or FALSE

Accumulated Depreciation is a permanent account.
The dividends account is a temporary account.
The accumulated depreciation is closed to the income summary account.
Office equipment is an example of a current asset account.
The amount of the net income for a period appears on both the income statement and the balance sheet for the period.
Generally accepted accounting principles require accrual-basis accounting.
Unearned revenue is a liability.
The financial statement is prepared from the unadjusted trial balance.
After analyzing transactions, the next step is to post the transaction in the ledger.
Prepaid insurance is an example of a current asset.

raspberrydinosaur525

On March 31, the following data were accumulated to assist the accountant in preparing the adjusting entries for Potomac Realty:

a.The supplies account balance on March 31 is $5,620, the supplies on hand on March 31 are $1,290.

b.The unearned rent account balance on March 31 is $5,000 representing the receipt of an advance payment on March 1 of four months’ rent from tenants.

c.Wages accrued but not paid at March 31 are $2,290

d.Fees accrued but unbilled on March 31 are $16,825.

e.Depreciation of office equipment is $4,600.

CHART OF ACCOUNTS Potomac RealtyGeneral Ledger
	ASSETS
11	Cash
12	Accounts Receivable
13	Supplies
14	Prepaid Insurance
15	Land
16	Equipment
17	Accumulated Depreciation-Office Equipment
19	Accumulated Depreciation-Automobiles

	LIABILITIES
21	Accounts Payable
22	Unearned Rent
23	Wages Payable
24	Taxes Payable

	EQUITY
31	Owner, Capital
32	Owner, Drawing

	REVENUE
41	Fees Earned
42	Rent Revenue

	EXPENSES
51	Advertising Expense
52	Insurance Expense
53	Rent Expense
54	Wages Expense
55	Supplies Expense
56	Utility Expense
57	Depreciation Expense
59	Miscellaneous Expense

	Required:
1.	Journalize the adjusting entries required on March 31. Refer to the Chart of Accounts for the exact wording of account titles.
2.	What is the difference between adjusting entries and correcting entries?
	A) Both adjusting entries and correcting entries are a planned part of the accounting process.
	B) Adjusting entries are a planned part of the accounting process, correcting entries are not planned but arise when necessary to correct errors.
	C) Both adjusting entries and correcting entries are not a planned part of the accounting process.
	D) Correcting entries are a planned part of the accounting process, adjusting entries are not planned but arise when necessary to adjust errors.

brownfox469

On May 31, the following data were accumulated to assist theaccountant in preparing the adjusting entries for OceansideRealty:

a.	Fees accrued but unbilled at May 31are $19,750.
b.	The supplies account balance on May31 is $12,300. The supplies on hand at May 31 are $4,150.
c.	Wages accrued but not paid at May31 are $2,700.
d.	The unearned rent account balanceat May 31 is $9,000, representing the receipt of an advance paymenton May 1 of three monthsâ rent from tenants.
e.	Depreciation of office equipment is$3,200.

	Required:
1.	Journalize the adjustingentries required at May 31. Refer to the Chart of Accounts forexact wording of account titles.
2.	What is the difference betweenadjusting entries and correcting entries?

Chart of Accounts

CHARTOF ACCOUNTS

Oceanside Realty

General Ledger

	ASSETS
11	Cash
12	Accounts Receivable
13	Supplies
14	Prepaid Insurance
15	Land
16	Equipment
17	AccumulatedDepreciation-Equipment
19	AccumulatedDepreciation-Automobiles

	LIABILITIES
21	Accounts Payable
22	Unearned Rent
23	Wages Payable
24	Taxes Payable

	EQUITY
31	Owner, Capital
32	Owner, Drawing

	REVENUE
41	Fees Earned
42	Rent Revenue

	EXPENSES
51	Advertising Expense
52	Insurance Expense
53	Rent Expense
54	Wages Expense
55	Supplies Expense
56	Utilities Expense
57	Depreciation Expense
59	Miscellaneous Expense

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MGAB01H3 Study Guide - Midterm Guide: 6 Years, Retained Earnings, Income Statement

MGAB01H3 Full Course Notes

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