Question :
141. Statements that show the effects of proposed transactions as if : 1256797
141. Statements that show the effects of proposed transactions as if the transactions had already occurred are called:
A. Pro forma statements
B. Professional statements
C. Simplified statements
D. Temporary statements
E. Interim statements
142. The following items appeared on a company’s December 31 work sheet for the current period. Based on the following information, what is net income for the current period?
Unadjusted
Trial Balance
Adjustments
Debit
Credit
Debit
Credit
Cash
975
Prepaid insurance
3,600
150
Supplies
180
70
Equipment
10,320
Accounts payable
1,140
Unearned fees
4,500
375
Common stock
5,000
Retained earnings
4,180
Dividends
1,650
Fees earned
5,850
375
300
Rent expense
1,200
Salaries expense
2,400
315
Utilities expense
345
_____
Insurance expense
150
Supplies expense
70
Depreciation expense – equipment
190
Accumulated depreciation – equipment
190
Salaries payable
315
Accounts receivable
300
_____
Totals
20,670
20,670
1,400
1,400
A. $1,400
B. $1,855
C. $1,905
D. $2,060
E. $4,670
143. Which of the following errors would cause the Balance Sheet columns of a work sheet to be out of balance?
A. Entering an asset amount in the Income Statement Debit column.
B. Entering a liability amount in the Income Statement Credit column.
C. Entering an expense amount in the Balance Sheet Debit column.
D. Entering a revenue amount in the Balance Sheet Debit column.
E. Entering a liability amount in the Balance Sheet Credit column.
144. The Unadjusted Trial Balance columns of a work sheet total $84,000. The Adjustments columns contain entries for the following:
Office supplies used during the period, $1,200.
Expiration of prepaid rent, $700.
Accrued salaries expense, $500.
Depreciation expense, $800.
Accrued service fees receivable, $400.
The Adjusted Trial Balance columns total is:
A. $80,400
B. $84,000
C. $85,700
D. $85,900
E. $87,600
145. On January 1, Able Company purchased equipment costing $135,000 with an estimated salvage value of $10,500, and an estimated useful life of five years. Using the straight-line method, what is the amount that should be recorded as depreciation on December 31?
$27,000
$24,900
$29,100
$135,000
$10,500
146. A company had service revenue of $250,000, rent expense of $10,000, utility expense of $3,500, salary expense of $18,500, depreciation expense of $9,000, advertising expense of $4,500, dividends in the amount of $18,000, and a beginning balance in retained earnings of $17,900. What is the balance in the income summary account before it is closed for the period?
$250,000
$45,500
$204,500
$222,400
$232,100
147. A company had revenue of $550,000, rent expense of $100,000, utility expense of $10,000, salary expense of $125,500, depreciation expense of $39,000, advertising expense of $40,200, dividends in the amount of $183,000, and an ending balance in retained earnings of $402,300. What is the beginning retained earnings for the period?
$250,000
$235,300
$314,700
$367,000
$350,000
148. A company had revenue of $550,000, rent expense of $100,000, utility expense of $10,000, salary expense of $125,500, depreciation expense of $39,000, advertising expense of $40,200, dividends in the amount of $183,000, and an ending balance in retained earnings of $402,300. What is the appropriate journal entry to close income summary?
Income Summary…………….$235,300
Retained Earnings………………..$235,300
Retained Earnings……………$235,300
Income Summary………………..$235,300
Income Summary…………….$52,300
Retained Earnings………………..$52,300.
Retained Earnings…………….$52,300
Income Summary…………………$52,300
Income Summary………………$314,700
Retained Earnings…………………$314,700
149. Based on the following information, what would be the total on the Credit side of a post- closing trial balance, assuming all accounts have a normal balance?
Cash
$6,754
Dividends
$2,000
Accounts receivable
13,733
Consulting fees earned
13,718
Office supplies
2,625
Rent expense
3,673
Land
37,153
Salaries expense
6,642
Office equipment
14,535
Telephone expense
560
Accounts payable
6,463
Miscellaneous expense
280
Common stock
54,490
Retained Earnings
?
$61,516
$74,671
$74,800
$87,955
$81,263
150. Based on the following information, what would be the balance in the Retained Earnings Account, assuming all accounts have a normal balance?
Cash
$6,754
Dividends
$2,000
Accounts receivable
13,733
Consulting fees earned
13,718
Office supplies
2,625
Rent expense
3,673
Land
37,153
Salaries expense
6,642
Office equipment
14,535
Telephone expense
560
Accounts payable
6,463
Miscellaneous expense
280
Common stock
54,490
Retained earnings
?
$0
$13,718
$13,155
$13,284
$2,563
151. Based on the following information, what would be the ending balance in the Retained Earnings account, assuming all accounts have a normal balance?
Cash
$6,754
Dividends
$2,000
Accounts receivable
13,733
Consulting fees earned
13,718
Office supplies
2,625
Rent expense
3,673
Land
37,153
Salaries expense
6,642
Office equipment
14,535
Telephone expense
560
Accounts payable
6,463
Miscellaneous expense
280
Common stock
54,490
Retained earnings
?
$15,847
$13,718
$13,155
$13,284
$13,847
152. Based on the following information, determine the current ratio, assuming all accounts have a normal balance?
Cash
$6,754
Dividends
$2,000
Accounts receivable
13,733
Consulting fees earned
13,718
Office supplies
2,625
Rent expense
3,673
Land
37,153
Salaries expense
6,642
Office equipment
14,535
Telephone expense
560
Accounts payable
6,463
Miscellaneous expense
280
Common stock
54,490
Retained earnings
?
1.23
3.58
11.57
12.3
1.57
153. Based on the following information, determine the current assets, assuming all accounts have a normal balance?
Cash
$6,754
Dividends
$2,000
Accounts receivable
13,733
Consulting fees earned
13,718
Office supplies
2,625
Rent expense
3,673
Land
37,153
Salaries expense
6,642
Office equipment
14,535
Telephone expense
560
Accounts payable
6,463
Miscellaneous expense
280
Common stock
54,490
Retained earnings
?
$74,800
$37,647
$60,265
$23,112
$60,953
