A company's accountant is trying to prepare an adjusted trial balance from the list of accounts below.
Cash $ 12,000
Retained Earnings 31,000
Prepaid Rent 2,000
Salaries Expense 15,000
Equipment 68,000
Service Revenue 40,000
Miscellaneous Expense 10,000
Supplies 4,000
Dividends 3,000
Accounts Payable 5,000
Common Stock 38,000
A) $111,000.
B) $81,000.
C) $114,000.
D) $86,000.
Answer: C
A company's accountant is trying to prepare an adjusted trial balance from the list of accounts below.
Cash $ 12,000
Retained Earnings 31,000
Prepaid Rent 2,000
Salaries Expense 15,000
Equipment 68,000
Service Revenue 40,000
Miscellaneous Expense 10,000
Supplies 4,000
Dividends 3,000
Accounts Payable 5,000
Common Stock 38,000
A) $114,000.
B) $86,000.
C) $81,000.
D) $11,000.
Answer: A
1. Record the adjusting entries in the journal.
2. Prepare an adjusted trial balance to check the equality of the debits and credits.
3. Determine the accounts requiring adjustment, using the unadjusted trial balance.
4. Post the adjusting entries to the general ledger.
Place the actions above in the proper order.
A) 1, 4, 3, 2.
B) 1, 2, 4, 3.
C) 3, 4, 2, 1.
D) 3, 1, 4, 2.
Answer: D
A) Is a list of all accounts and their balances after adjusting entries.
B) Is a list of all accounts and their balances before adjusting entries.
C) Is a list of all accounts and their balances after closing entries.
D) Is a trial balance adjusted for cash-basis accounting.
Answer: A
A) A trial balance.
B) An adjusted trial balance.
C) A post-closing trial balance.
D) An accounting trial balance.
Answer: B
Prior to adjusting entries, Prepaid Rent had a balance of $8,300. The following year-end adjusting entry was made by the company:
Rent Expense 6,800
Prepaid Rent 6,800
A) $1,500.
B) $6,800.
C) $8,300.
D) $15,100.
Answer: A
