Question :
121. Use the work sheet for Finley Company to answer the : 1251823
121. Use the work sheet for Finley Company to answer the questions that follow.
Finley CompanyWork SheetFor the Year Ended December 31, 2010
Adjusted Trial BalanceIncome StatementBalance Sheet
Account TitleDebitCreditDebitCreditDebitCredit
Cash48,00048,000
Accounts Receivable18,00018,000
Supplies6,0006,000
Equipment57,00057,000
Accum. Depr. – Equip.18,00018,000
Accounts Payable30,00030,000
Wages Payable6,0006,000
Capital Stock5,0005,000
Retained Earnings28,00028,000
Dividends3,0003,000
Fees Earned141,000141,000
Wages Expense63,00063,000
Rent Expense18,00018,000
Depreciation Expense15,00015,000
Totals228,000228,00096,000141,000132,00087,000
Net Income (Loss)45,00045,000
141,000141,000132,000132,000
The entry to close expenses would be A. Wages Expense 63,000Rent Expense 18,000Depreciation Expense 15,000 Income Summary 96,000B. Expenses 96,000 Income Summary 96,000C. Wages Expense 63,000Rent Expense 18,000Depreciation Expense 15,000 Dividends 96,000D. Income Summary 96,000 Wages Expense 63,000 Rent Expense 18,000 Depreciation Expense 15,000
122. Use the work sheet for Finley Company to answer the questions that follow.
Finley CompanyWork SheetFor the Year Ended December 31, 2010
Adjusted Trial BalanceIncome StatementBalance Sheet
Account TitleDebitCreditDebitCreditDebitCredit
Cash48,00048,000
Accounts Receivable18,00018,000
Supplies6,0006,000
Equipment57,00057,000
Accum. Depr. – Equip.18,00018,000
Accounts Payable30,00030,000
Wages Payable6,0006,000
Capital Stock5,0005,000
Retained Earnings28,00028,000
Dividends3,0003,000
Fees Earned141,000141,000
Wages Expense63,00063,000
Rent Expense18,00018,000
Depreciation Expense15,00015,000
Totals228,000228,00096,000141,000132,00087,000
Net Income (Loss)45,00045,000
141,000141,000132,000132,000
The entry to close Income Summary would be A. debit Retained Earnings, $45,000; credit Income Summary, $45,000B. debit Income Summary, $141,000; credit Retained Earnings, $141,000C. debit Income Summary, $45,000; credit Retained Earnings, $45,000D. debit Retained Earnings, $9,000; credit Income Summary, $9,000
123. Use the work sheet for Finley Company to answer the questions that follow.
Finley CompanyWork SheetFor the Year Ended December 31, 2010
Adjusted Trial BalanceIncome StatementBalance Sheet
Account TitleDebitCreditDebitCreditDebitCredit
Cash48,00048,000
Accounts Receivable18,00018,000
Supplies6,0006,000
Equipment57,00057,000
Accum. Depr. – Equip.18,00018,000
Accounts Payable30,00030,000
Wages Payable6,0006,000
Capital Stock5,0005,000
Retained Earnings28,00028,000
Dividends3,0003,000
Fees Earned141,000141,000
Wages Expense63,00063,000
Rent Expense18,00018,000
Depreciation Expense15,00015,000
Totals228,000228,00096,000141,000132,00087,000
Net Income (Loss)45,00045,000
141,000141,000132,000132,000
The entry to close Dividends would be A. debit Retained Earnings, $3,000; credit Dividends, $3,000B. debit Retained Earnings, $12,000; credit Dividends, $12,000C. debit Dividends, $3,000; credit Retained Earnings, $3,000D. debit Dividends, $12,000; credit Retained Earnings, $12,000
124. Use the work sheet for Finley Company to answer the questions that follow.
Finley CompanyWork SheetFor the Year Ended December 31, 2010
Adjusted Trial BalanceIncome StatementBalance Sheet
Account TitleDebitCreditDebitCreditDebitCredit
Cash48,00048,000
Accounts Receivable18,00018,000
Supplies6,0006,000
Equipment57,00057,000
Accum. Depr. – Equip.18,00018,000
Accounts Payable30,00030,000
Wages Payable6,0006,000
Capital Stock5,0005,000
Retained Earnings28,00028,000
Dividends3,0003,000
Fees Earned141,000141,000
Wages Expense63,00063,000
Rent Expense18,00018,000
Depreciation Expense15,00015,000
Totals228,000228,00096,000141,000132,00087,000
Net Income (Loss)45,00045,000
141,000141,000132,000132,000
The ending balance in Retained Earnings is A. $28,000B. $70,000C. $25,000D. $73,000
125. The proper sequence for the steps in the accounting cycle is a follows A. analyze and record transactions, post transaction to the ledger, prepare a trial balance, prepare financial statements, journalize closing entries, analyze adjustment data and prepare adjusting entriesB. prepare a trial balance, analyze adjustment data, prepare adjusting entries, prepare financial statements, journalize closing entries and post to the ledger, analyze and record transactions, post transactions to the ledgerC. analyze and record transactions, post transactions to the ledger, prepare a trial balance, analyze adjustment data, prepare adjusting entries, prepare financial statements, journalize closing entries and post to the ledgerD. 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 adjusting entries
126. The following are steps to the accounting cycle. Of the following, which step should be done first? A. Closing entries are journalized and posted to the ledger.B. Transactions are posted to the ledger.C. Adjusting entries are journalized and posted to the ledger.D. Financial statements are prepared.
127. The following are steps in the accounting cycle. Of the following, which would be prepared last? A. An adjusted trial balance is prepared.B. Transactions are posted to the ledger.C. An unadjusted trial balance is prepared.D. Adjusting entries are journalized and posted to the ledger.
128. The accounting cycle requires three trial balances be done. In what order should they be prepared? A. Post-closing, unadjusted, adjustedB. Unadjusted, post-closing, adjustedC. Unadjusted, adjusted, post-closingD. Post-closing, adjusted, unadjusted
129. The fiscal year selected by companies A. is the same as the calendar year.B. begins with the first day of the month and ends on the last day of the twelfth month.C. must always begin on January 1.D. will change each year.
130. A fiscal year A. ordinarily begins on the first day of a month and ends on the last day of the following twelfth month.B. for a business is determined by the federal government.C. always begins on January 1 and ends on December 31 of the same year.D. should end at the height of the business’s annual operating cycle.
