Question :
1) The accounting cycle the process by which companies produce : 1212600
1) The accounting cycle is the process by which companies produce their financial statements for a specific period of time.
2) The accounting cycle as well as financial statement presentation is different for companies reporting under international financial reporting standards (IFRS) and those reporting under accounting standards for private enterprises (ASPE).
3) Under international financial reporting standards (IFRS), a Balance Sheet may also be called a Statement of Financial Position.
4) Companies following international financial reporting standards (IFRS) must provide the following financial statements:
A) Income Statement, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows, Notes
B) Statement of Comprehensive Income, Statement of Final Position, Statement of Changes in Equity, Statement of Cash Flows, Notes
C) Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows, Notes
D) Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Cash Flow, Statement of Owner’s Equity, Notes
5) In terms of presentation, the main difference between a balance sheet prepared under accounting standards for private enterprises (ASPE) and a statement of financial position prepared under international financial reporting standards (IFRS) might be:
A) the time period being covered.
B) the level of detail presented.
C) the items included.
D) the ordering of the assets and liabilities.
6) Canadian companies following International Financial Reporting Standards (IFRS) are required to classify their balance sheets:
A) on the equity and liability side in the order of equity, long-term liabilities, current liabilities.
B) on the asset side long-term assets followed by current assets.
C) in the same manner as ASPE.
D) using IFRS presentation or the traditional presentation.
7) What are the potential differences in balance sheet presentation for companies reporting under ASPE versus IFRS?
1) At the end of the period on December 31, 2013, Jack’s Fishing and Tackle shop accrued interest expense in the amount of $82. On January 15, 2014, the loan payment was made and included $2,000 principal and $140 interest. What is the journal entry to record the January 15, 2014, payment if Jack’s accountant used a reversing entry on January 1, 2014?
A)
Loan payable
2,140
Cash
2,140
B)
Loan payable
2,000
Interest expense
140
Cash
2,140
C)
Loan payable
2,000
Interest expense
58
Interest payable
82
Cash
2,140
D)
Loan payable
2,000
Interest payable
140
Cash
2,140
2) The following are the adjusting journal entries recorded by Sterling Services for the year ended December 31, 2013. Assuming that Sterling uses reversing entries, prepare the reversing entries on January 1, 2014.
Explanations are not required.
General Journal
Date
Accounts
Debit
Credit
Dec. 31
Salary Expense
4,000
Salary Payable
4,000
31
Unearned Service Revenue
6,000
Service Revenue
6,000
31
Accounts Receivable
1,400
Service Revenue
1,400
31
Insurance Expense
1,400
Prepaid Insurance
1,400
31
Supplies Expense
3,100
Supplies
3,100
3) The following are the adjusting journal entries recorded by Manitouwan Services for the year ended December 31, 2013. Assuming that Manitouwan uses reversing entries, prepare the reversing entries on January 1, 2014. Explanations are not required.
General Journal
Date
Accounts
Debit
Credit
Dec. 31
Accounts Receivable
6,200
Service Revenue
6,200
31
Supplies Expense
1,800
Supplies
1,800
31
Insurance Expense
2,800
Prepaid Insurance
2,800
31
Amortization Expense
4,900
Accumulated Amortization
4,900
31
Unearned Service Revenue
1,400
Service Revenue
1,400
31
Salary Expense
1,800
Salary Payable
1,800
4) The following are the adjusting journal entries recorded by Mandarin Consulting for the year ended December 31, 2013. Assuming that Mandarin uses reversing entries, prepare the reversing entries on January 1, 2014. Explanations are not required.
General Journal
Date
Accounts
Debit
Credit
Dec. 31
Office Supplies Expense
300
Office Supplies
300
31
Insurance Expense
550
Prepaid Insurance
550
31
Amortization Expense
2,400
Accumulated Amortization
2,400
31
Unearned Service Revenue
250
Service Revenue
250
31
Interest Expense
200
Interest Payable
200
31
Salaries Expense
650
Salaries Payable
650
31
Rent Expense
300
Prepaid Rent
300
5) Charlton Cleaning Services pays out wages every week on Friday afternoon. Payroll expense totals $3,500 per week, based on a 5-day week. The month of June ended on a Thursday. On Thursday, June 30, Charlton made the following accrual adjustment:
Wages expense
2,800
Wages payable
2,800
At the same time, they prepared the following reversing entry to be booked on July 1:
Wages payable
2,800
Wages expense
2,800
On Friday afternoon, when wages were paid out, what journal entry is required?
