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

 

 

 

 

 

 

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