财务会计英语 练习及答案ch04(7)

Chapter 4—Completing the Accounting Cycle

9. On the basis of the following data taken from the Adjusted Trial Balance columns of the work sheet for the year ended October 31 for Shore Co., journalize the four closing entries. Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Stan Shore, Capital Stan Shore, Drawing Fees Earned Salary Expense Rent Expense Depreciation Expense Supplies Expense Miscellaneous Expense

ANS:

Oct. 31 Fees Earned Income Summary 31 Income Summary Salary Expense Rent Expense Depreciation Expense Supplies Expense Miscellaneous Expense 31 Income Summary Stan Shore, Capital 31 Stan Shore, Capital Stan Shore, Drawing

DIF: 3 OBJ: 04

110

$ 21,500 45,200 5,000 169,900 30,000 300,500 60,000 25,000 9,500 2,000 $668,600 ======== 404,500 397,000 7,500 30,000 $ 69,000 42,500 152,600 404,500 $668,600 ======== 404,500 300,500 60,000 25,000 9,500 2,000 7,500 30,000

Chapter 4—Completing the Accounting Cycle

10. After all adjustments have been made, but before the accounts have been closed, the following

balances were taken from the ledger:

Accounts Payable $ 40,000 Rent Expense $ 21,400 Accounts Receivable 54,500 Salary Expense 66,000 Accumulated Depreciation 83,325 Salaries Payable 150 Cash 7,150 Service Revenue 151,000 Depreciation Expense 23,500 Supplies 2,500 Equipment 155,000 Supplies Expense 3,500 Insurance Expense 8,600 Ray Felon, Capital 100,950 Prepaid Insurance 5,275 Ray Felon, Drawing 28,000

Journalize the entries to close the appropriate accounts.

ANS:

Service Revenue Income Summary Income Summary Depreciation Expense Insurance Expense Rent Expense Salary Expense Supplies Expense Income Summary Ray Felon, Capital Ray Felon, Capital Ray Felon, Drawing

DIF: 3 OBJ: 04

151,000 123,000 28,000 28,000 151,000 23,500 8,600 21,400 66,000 3,500 28,000 28,000 111

Chapter 4—Completing the Accounting Cycle

11. The following balance sheet contains errors.

Billy Brown Services Co.

Balance Sheet

For the Year Ended December 31, 2005

Assets Liabilities

Current assets: Current liabilities: Cash $ 6,170 Accounts receivable $ 9,000 Accounts payable 8,500 Accum. depr-building 13,525 Supplies 1,590 Accum. depr-equipment 6,340 Prepaid insurance 345 Net income 12,500 Land 25,000 Total current assets $41,605 Total liabilities $ 41,365 Owner's Equity Property, plant, and Wages payable $ 500 equipment: Building $45,500 Billy Brown, capital 74,490 Equipment 28,250 Total owner's equity $ 74,990 Total property,

plant, 73,750 and equipment Total liabilities and Total assets $116,355 owner's equity $116,355 ======= =======

= =

(a) List the errors in the balance sheet above and (b) prepare a corrected balance

sheet.

ANS:

(a) (1) Date of statement should be \

Ended \ (2) Accounts payable should be a current liability. (3) Land should be a fixed asset. (4) Accumulated depreciation should be deducted from the related fixed asset. (5) An adding error was made in determining the amount of total assets. (6) Accounts receivable should be a current asset. (7) Net income would be reported on the income statement. (8) Wages payable should be a current liability.

112

Chapter 4—Completing the Accounting Cycle

A corrected balance sheet would be as follows:

Billy Brown Services Co.

Balance Sheet December 13, 2005

Assets

Current assets: Cash Accounts receivable Supplies Prepaid insurance

$ 6,170 9,000 1,590 345

) ) ) ) ) ) ) ) ) Total current assets Property, plant, and equipment: Land Building Less accum. depreciation Equipment Less accum. depreciation Total property, plant, and equipment Total assets

( Liabilities (Current liabilities: ( Accounts payable ( Wages payable (Total liabilities ( ( Owner's Equity (Billy Brown, capital ( (Total liabilities and ( owner's equity

DIF: 4 OBJ: 03

$45,500 13,525 28,250 6,340 $ 8,500 500

$25,000

31,975

21,910 $ 9,000

86,990

$95,990 =======

$17,105

78,885 $95,990 =======

) ) ) ) ) ) ) ) ) ) )

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Chapter 4—Completing the Accounting Cycle

12. Prior to adjustment at July 31, 2005, Salary Expense has a debit balance of $300,500. Salaries

owed but not paid as of the same date total $1,500.

(a) Present the entries to record the following: (1) Accrued salaries as of July 31. (2) Closing of Salary Expense as of July 31. (3) Reversal of adjusting entry as of August 1. (4) Payment of weekly salaries of $9,900 on August 3. (b) Answer the following questions: (1) Is the balance in Salary Expense, after posting the entry of August 1, an asset,

a liability, a revenue, or an expense?

(2) What is the amount of the balance in Salary Expense after posting the entry of

August 3?

(3) If there had been no reversing entry as of August 1, what would the debits

have been when the weekly salary was paid on August 3?

ANS: (a)

(1) Salary Expense 1,500 Salaries Payable 1,500 (2) Income Summary 302,000 Salary Expense 302,000 (3) Salaries Payable 1,500 Salary Expense 1,500 (4) Salary Expense 9,900 Cash 9,900 (b)

(1) A liability

(2) $8,400 ($9,900 - $1,500) (3) Salaries Payable, $1,500 Salary Expense, $8,400

DIF: 2 OBJ: 04, App

114

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