FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 3: Adjusting Accounts for Financial Statements

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 181

Essay

Review LaterAdd Note

Review Later

a)Prepare a classified balance sheet for Martin Air Freight based on the adjusted trial balance shown below.b)Prepare the required closing entries. * $2,000 of the long-term note payable is due during the next year.

Correct Answer

verified

\[\begin{array} { |l| r | r | }
\hline ...

View Answer

Show Answer

Question 182

True/False

Review LaterAdd Note

Review Later

The first step in the accounting cycle is to analyze transactions and events to prepare for journalizing.

A) True
B) False

Correct Answer

verified

Show Answer

Question 183

Multiple Choice

Review LaterAdd Note

Palmer Company is at the end of its annual accounting period.The accountant has journalized and posted all external transactions and all adjusting entries,has prepared an adjusted trial balance,and completed the financial statements.The next step in the accounting cycle is:

A broad principle that requires identifying the activities of a business with specific time periods such as months,quarters,or years is the:

Explain how the owner of a company uses the accrual basis of accounting.

A company made no adjusting entry for accrued and unpaid employee wages of $28,000 on December 31.This oversight would:

A company's Office Supplies account shows a beginning balance of $600 and an ending balance of $400.If office supplies expense for the year is $3,100,what amount of office supplies was purchased during the period?

Financial statements can be prepared directly from the information in the adjusted trial balance.

The expense recognition (matching)principle requires that expenses get recorded in the same accounting period as the revenues that are earned as a result of the expenses,not when cash is paid.

Reversing entries are recorded in response to external transactions that were created in error during the prior accounting period.

Closing entries result in the Dividends account being transferred into net income or net loss for the period ending.

Adjusting entries:

Reversing entries:

For the year ended December 31,a company has revenues of $317,000 and expenses of $196,000.The company paid $50,000 in dividends during the year.The balance in the Retained earnings account before closing is $81,000.Which of the following entries would be used to close the dividends account?

Intangible assets are long-term resources that benefit business operations that usually lack physical form and have uncertain benefits.

All plant assets,including land,are depreciated.

From the information provided,calculate Giuseppe's profit margin ratio for each of the three years.Comment on the results,assuming that the industry average for the profit margin ratio is 6% for each of the three years. $\begin{array}{llll}&2017&2016&2015\\\text { Net income } & \$ 2,630 & \$ 2,100 & \$ 1,850 \\\text { Net Sales } & 36,500 & 32,850 & 31,200 \\\text { Total Assets } & 400,000 & 385,000 & 350,000\end{array}$

Discuss how accrual accounting enhances the usefulness of financial statements.

At the beginning of the year,Sigma Company's balance sheet reported Total Assets of $195,000; Total Liabilities of $15,000; and Total Paid-in capital of $60,000.During the year,the company reported total revenues of $226,000 and expenses of $175,000.Also,dividends during the year totaled $48,000.Assuming no other changes to Retained earnings,the balance in the Retained earnings account at the end of the year would be:

Profit margin = ________ divided by net sales.