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WorksheetsPractice Questions 2
Total questions: 12
Worksheet time: 6mins
On a worksheet, the Income Statement debit total is $900 and the Income Statement credit total is $1,100. The company has a:
Net income of $2,000.
Net income of $200.
Net loss of $200.
Net loss of $2,000.
Amelia is preparing an Income Statement. She has written the name of the business, the name of the statement, and the accounting period covered by the statement. What should she do NEXT?
Calculate the Net Income or Net Loss
Prepare the Expenses Section
Prepare the heading
Prepare the Revenue Section
Samuel is preparing a Balance Sheet. He has listed all the assets and their balances. What must he do next?
Prepare the Expense section
Prepare the Liability section
Prepare the Owner's Equity section
Double rule across the left and right columns
If the beginning supplies balance is $1,400, and the ending supplies balance is $900, the correct adjustment on the worksheet is to debit:
Supplies and credit Supplies Expense $900.
Supplies and credit Supplies Expense $500.
Supplies Expense and credit Supplies $900.
Supplies Expense and credit Supplies $500.
If the beginning prepaid insurance balance is $1,800, and the ending value of the insurance is $1,000, the correct adjustment on the worksheet is to debit:
Insurance Expense and credit Prepaid Insurance $2,800.
Prepaid Insurance and credit Insurance Expense $800.
Insurance Expense and credit Prepaid Insurance $800.
Prepaid Insurance and credit Insurance Expense $2,800.
The Mercantile Company has Sales of $2,000. The company has the following expenses:
Advertising Expense - $200
Insurance Expense - $500
Rent Expense - $800
Supplies Expense - $700
Utilities Expense - $125
Calculate the component percentage for Insurance Expense.
2%
2.5%
5%
25%
Rachel is preparing the closing entries for her company. She has closed all the income statement accounts that have a debit balance. What is the NEXT step that she will perform?
Journalize an entry to transfer net income or net loss to the owner’s capital account and close the income summary account
Journalize an entry to close the owner's drawing account
Journalize an entry to close income statement accounts that have debit balances
Journalize an entry to close income statement accounts that have credit balances
After Tim prepares his closing entries for the month, he wants to determine if total debit balances and total credit balances of the General Ledger accounts are equal. What will Tim do FIRST?
Rule a single line below the last amount in each column
Write the account balance in either the debit or credit column
Write the account titles of all general ledger accounts that have balances in the Account Title column
Write the heading "Post-Closing Trial Balance" in the heading section
Sadie is closing the income summary account. Her company had a net loss of $4,000. The correct journal entry is debit:
Drawing, and credit Income Summary, $4,000.
Owner's equity, and credit Income Summary, $4,000.
Sales, and credit Income Summary, $4,000.
Income Summary, and credit Drawing, $4,000.
When closing the Utilities Expense account, debit:
Income Summary and credit Utilities Expense.
Owner’s Equity and credit Utilities Expense.
Utilities Expense and credit Income Summary.
Utilities Expense and credit Owner's Equity.
BA10 4.05 Sample Assessment Items – Page 3
Figure 1
Account Title Income Statement Balance Sheet Debit Credit Debit Credit Susan James, Capital1,875.00Susan James, Drawing 325.00 Income Summary Sales5,000.00Advertising Expense 500.00 Insurance Expense 300.00 Miscellaneous Expense 200.00Rent Expense 1,100.00 Supplies Expense 300.00 2,400.005,000.005,000.002,400.00Net Income 2,600.002,600.00
Figure 1 contains a partial worksheet. The correct entry to close the revenue account is to debit:
Susan James, Capital $5,000 and credit Sales $5,000.
Income Summary $5,000 and credit Sales $5,000.
Sales $5,000 and credit Income Summary $5,000.
Sales $5,000 and credit Susan James, Capital $5,000.
BA10 4.05 Sample Assessment Items – Page 4
Preparing a Post-Closing Trial Balance (calculating balances)
Adams Accounting Worksheet For the Year Ended December 31, 201- Trial BalanceAdjustmentsIncome StatementBalance Sheet Account TitleDebitCreditDebitCreditDebitCreditDebitCredit1Cash1,000 2 Accounts Receivable 300 3 Allow. for Uncollectible 25 35 4 Merchandise Inventory 1,400 200 5 Prepaid Insurance 600 300 6 Store Equipment5,000 7 Acc. Depr. - Store Equip. 1,000 300 8 Accounts Payable 500 9 Federal Income Tax Payable 500 100 10 Dividends payable 100 11 Capital Stock 5,000 12 Retained Earnings 6,0002,500 13 Dividends 2,000 Figure 2
Using the Year Ended Worksheet for Adams Accounting in Figure 2, compute the merchandise inventory balance on the Post-Closing Trial Balance.
The merchandise inventory balance is $200.
The merchandise inventory balance is $1200.
The merchandise inventory balance is $1400.
The merchandise inventory balance is $1600.
