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ACCT 1201 Chapter Notes - Chapter 4: Accounts Payable, Trial Balance, Interest Expense

182 views10 pages
skyraven864
22 Mar 2013
School
Northeastern University
Department
Accounting
Course
ACCT 1201
Professor
Ronen Gal-or

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Document Summary

The trial balance is basically just aggregating everything you put together in t-accounts. 1: journalize and post adjusting entries, deferred (unearned) revenues ex. Franchise fees: deferred (prepaid) expense ex. Receivable, franchise fee receivable: accrued expenses ex. Accumulated depreciation: deferred (unearned) revenues ex. 1 unearned rent (similar to unearned franchise fees) Be careful of which company"s perspective you are booking the journals for. Adjusting entry (12/31/01, four months) to recognize rent revenue earned. Conclusion (8/31/02) the rental period ends and grubb ellis recognizes the rest of the revenue. Interest receivable, rent receivable, royalties receivable, franchise fee. Inception (9/1/01) dillbean corp signs a one-year rental agreement and agrees to pay grubb ellis rent of ,000 at the end of the lease period (8/31/02). Adjusting entry (12/31/01) to recognize rent revenue earned. Conclusion (8/31/02) the rental period ends and grubb ellis receives ,000. Adjusting entry (12/31/01) to recognize interest revenue earned. Interest revenue = principle * interest rate * time period.

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Related Questions

The proper sequence for the steps in the accounting cycle is as follows:

 

  1. analyze and record transactions, post-transaction to the ledger, prepare a trial balance, prepare financial statements, journalize closing entries, analyze adjustment data and prepare to adjust entries

  2. prepare a trial balance, analyze adjustment data, prepare to adjust entries,  prepare financial statements, journalize closing entries and post to the ledger, analyze and record transactions, post transactions to the ledger

  3. analyze and record transactions, post transactions to the ledger, prepare a trial balance, analyze adjustment data, prepare to adjust entries,  prepare financial statements, journalize closing entries and post to the ledger

  4. prepare financial statements, journalize closing entries and post to the ledger, analyze and record transactions, post transactions to the ledger, prepare a trial balance, analyze adjustment data, prepare to adjust entries.

1- The requirement that only transaction data capable of beingexpressed in terms of money be included in the accounting recordsrelates to the
Answer

A. cost principle.

B. monetary unit assumption.

C. economic entity assumption.

D. both a and b above.


2- Transactions are initially recorded in the
Answer

A. general ledger.

B. trial balance.

C. general journal.

D. balance sheet.


3- The proper sequence for the accounting cycle is
Answer

A. analyze, journalize, post, adjust, prepare statements,close.

B. post, journalize, analyze, prepare statements, close,adjust.

C. prepare statements, journalize, post, adjust, close,analyze.

D. journalize, post, close, prepare statements, adjust,analyze.


4- In preparing closing entries, which of the following columns ofthe worksheet are the most helpful?
Answer

A. The Adjusted Trial Balance columns

B. The Income Statement columns

C. The Balance Sheet columns

D. The Adjustments column

The general ledger of the Karlin Company, a consulting company, at January 1, 2018, contained the following account balances: Account Title Debits Credits Cash 33,500 Accounts receivable 10,000 Equipment 15,000 Accumulated depreciation 4,500 Salaries payable 6,000 Common stock 41,000 Retained earnings 7,000 Total 58,500 58,500 The following is a summary of the transactions for the year: Sales of services, $102,000, of which $30,600 was on credit. Collected on accounts receivable, $22,000. Issued shares of common stock in exchange for $7,500 in cash. Paid salaries, $37,000 (of which $6,000 was for salaries payable). Paid miscellaneous expenses, $20,000. Purchased equipment for $10,000 in cash. Paid $2,425 in cash dividends to shareholders. Accrued salaries at year-end amounted to $740. Depreciation for the year on the equipment is $1,500. Required: 2., 5, & 8. Prepare the summary, adjusting and closing entries for each of the transactions listed. 3. Post the transactions, adjusting and closing entries into the appropriate t-accounts. 4. Prepare an unadjusted trial balance. 6. Prepare an adjusted trial balance. 7-a. Prepare an income statement for 2018. 7-b. Prepare a balance sheet as of December 31, 2018. 9. Prepare a post-closing trial balance.