When balance sheet credits exceed the debits on the worksheet

Chapter 4 Solution (Horngren’s Accounting)

Assets are listed on the balance sheet in order of their

A. purchase date.

B. balance.

C. liquidity.

D. adjustments.

Which of the following accounts would be included in the​ property, plant, and equipment category of the classified balance​ sheet?

A. Accumulated Depreciation

B. Office Supplies

C. Mortgage Payable

D. Land held for investment

Which situation indicates a net loss within the Income Statement section of the​ worksheet?

A. Total debits exceed total credits

B. Total credits exceed total debits

C. Total debits equal total credits

D. None of the above

Which of the following accounts is not​ closed?

A. Dividends

B. Accumulated Depreciation

C. Service Revenue

D. Depreciation Expense

What do closing entries​ accomplish?

A. Bring the Retained Earnings account to its correct ending balance

B. Zero out the​ revenues, expenses, and dividends

C. Transfer​ revenues, expenses, and dividends to the Retained Earnings account

D. All of the above

Which of the following is not a closing​ entry?

Date

Accounts and Explanation

Debit

Credit

Retained Earnings

xxx

Dividends

xxx

B.

Income Summary

xxx

Rent Expense

xxx

C.

Service Revenue

xxx

Income Summary

xxx

D.

Salaries Payable

xxx

Income Summary

xxx

Which of the following accounts may appear on a​ post-closing trial​ balance?

​A. Cash, Salaries​ Payable, and Retained Earnings

B. ​Cash, Service​ Revenue, and Salaries Expense

C. ​Cash, Salaries​ Payable, and Salaries Expense

D. ​Cash, Salaries​ Payable, and Service Revenue

Which of the following steps of the accounting cycle is not completed at the end of the​ period?

A. Prepare the​ post-closing trial balance.

B. Journalize transactions as they occur.

C. Prepare the financial statements.

D. Journalize and post the closing entries.

Hair​ Stylists' adjusted trial balance follows. Prepare Dalton​'s income statement for the year ended December 31, 2018

Hair​ Stylists' adjusted trial balance and income statement follow. Prepare Dalton's statement of retained earnings for the year ended December 31, 2018.

Enter any increases in retained earnings prior to the subtotal and any decreases to retained earnings below the subtotal. ​(For amounts with a​ $0 balance, make sure to enter​ "0" in the appropriate​ cell.)

Dalton Hair​ Stylists's adjusted trial balance follows. Prepare Dalton​'s classified balance sheet at December 31​, 2018.

Assume the Notes Payable is due on December​ 1, 2025

Use the report form.

Begin by preparing the asset section of the balance​ sheet, then prepare the liabilities section and finally the​ stockholders' equity section. ​(You must compute the ending balance of Retained Earnings. If a box is not used in the balance​ sheet, leave the box​ empty; do not select a label or enter a​ zero.)

A partial worksheet for Ramey Law Firm is presented below. Solve for the missing information.

Begin by solving the missing information for the account title and Income Statement​ columns, then solve for the missing information in the Balance Sheet columns.

A partial worksheet for Aaron Adjusters is presented below. Solve for the missing information.

Begin by solving the missing information for the account title and Income Statement​ columns, then solve for the missing information in the Balance Sheet columns.

For each account​ listed, identify whether the account is a temporary account​ (T) or a permanent account​ (P).

The adjusted trial balance for Green Advertising Services is presented​ below:

Requirement 1. Prepare the income statement for the year ending December 31​, 2018

Requirement 2. Prepare the statement of retained earnings for the year ending December 31​, 2018

Requirement 3. Prepare the classified balance sheet as of December 31​, 2018.

Use the account form.

Begin by preparing the asset section of the balance sheet and then prepare the liabilities and​ stockholders' equity sections. ​(If a box is not used in the balance​ sheet, leave the box​ empty; do not select a label or enter a zero. Abbreviation​ used: Accum.​ = Accumulated.)

The adjusted trial balance of Stone Sign Company​ follows:

1. Assume Stone Sign Company has a January 31 ​year-end. Journalize Stone's closing entries at January 31.

2. How much net income or net loss did Stone Sign Company earn for the year ended January 31​?

How can you​ tell?

(Record debits​ first, then credits. Select the explanation on the last line of the journal entry​ table.)

​First, close revenues.

​Next, close the expense accounts.

Close the Income Summary account.

​Finally, close the Dividends account.

Requirement 2. How much net income or net loss did Stone Sign Company earn for the year ended January

​31? How can you​ tell?

Elmer, CPA, had the following partial​ worksheet:

Requirement 1. Complete the worksheet. Complete the worksheet by preparing the Income Statement and Balance Sheet columns. Be sure to calculate the total debits and credits in each step.

Requirement 2. Prepare the closing entries for Cynthia Elmer, CPA. ​(Record debits​ first, then credits. Select the explanation on the last line of the journal entry​ table.)

Start by closing revenues.

​Mark's Bowling​ Alley's adjusted trial balance as of December 31, 2018, is presented​ below:

Requirement 1. Prepare the closing entries for Mark​'s Bowling Alley. ​(Record debits​ first, then credits. Select the explanation on the last line of the journal entry​ table.)

Start by closing revenues.

Requirement 2. Prepare a​ post-closing trial balance.

Requirement 3. Compute the current ratio for Mark​'s Bowling Alley. Select the​ labels, enter the​ amounts, then compute the current ratio. ​(Round your answer to two decimal​ places.)

The adjusted trial balance of Boston Irrigation System at December 31, 2018, follows:.

Requirement 1. Prepare the​ company's income statement for the year ended December 31, 2018

.

​(If a box is not used in the​ statement, leave the box​ empty; do not select a label or enter a zero. Use a minus sign or parentheses to show a net​ loss.)

Requirement 2. Prepare the​ company's statement of retained earnings for the year ended December 31, 2018

.

Enter any increases in retained earnings prior to the subtotal and any decreases to retained earnings below the subtotal.

Requirement 3. Prepare the​ company's classified balance sheet in report form at December 31, 2018

.

​(If a box is not used in the balance​ sheet, leave the box​ empty; do not select a label or enter a​ zero.)

Requirement 4. Journalize the closing entries for Boston Irrigation System. ​(Record debits​ first, then credits. Select the explanation on the last line of the journal entry​ table.)

Start by closing revenues.

Requirement 5. Compute the​ company's current ratio at December 31 comma 2018

At December 31, 2017, the current ratio was 2.3

Did the​ company's ability to pay debts improve or​ deteriorate, or did it remain the​ same?

Select the labels then enter the amounts and compute the current ratio. ​(Round your answer to two decimal​ places.)

Since the current ratio was 2.3 one year​ ago, Boston's ability to pay its current liabilities has

The unadjusted trial balance of Fleming Investment Advisers at December 31, 2018

2.

Prepare the income​ statement, the statement of retained​ earnings, and the classified balance sheet in account format.

3.

Prepare closing entries.

Requirement 1. Prepare a worksheet for Fleming Investment Advisers at December 31, 2018

.

The unadjusted balances have been entered for you in the trial balance columns of a worksheet. Complete the worksheet one section at a time beginning with the Adjustments section. Enter the adjustments along with the adjustment letter references long dash (a), (b), (c), etc.long dash into the columns as appropriate. In the following​ step, complete the Adjusted Trial Balance.​ Lastly, complete the worksheet by preparing the Income Statement and Balance Sheet columns. Be sure to calculate the total debits and credits in each step. ​(Abbreviations used: Depr.​ = depreciation, Exp.​ = expense,​ l/t = long​ term, Pay.​ = payable, Rec.​ = receivable, Stk.​ = stock, and Supp.​ = supplies.)

Requirement 2. Prepare the income​ statement, the statement of retained​ earnings, and the classified balance sheet in account format. Begin by preparing the income statement. Review the Income Statement columns of the worksheet completed in Requirement 1.

Prepare the statement of retained earnings. Enter any increases in retained earnings prior to the subtotal and any decreases to retained earnings below the subtotal. Review the Balance Sheet columns of the worksheet completed in Requirement 1.

Prepare the classified balance sheet in account format on December31, 2018.

​(If a box is not used in the balance​ sheet, leave the box​ empty; do not select a label or enter a​ zero.)

Review the Balance Sheet columns of the worksheet completed in Requirement 1.

Review the Statement of Retained Earnings completed above.

Requirement 3. Prepare closing entries.​ (Record debits​ first, then credits. Select the explanation on the last line of the journal entry​ table.) Start by closing revenues. Review the Income Statement columns of the worksheet completed in Requirement 1.

Close expenses for the period. Review the Income Statement columns of the worksheet completed in Requirement 1.

Close Income Summary. Review the Income Statement columns of the worksheet completed in Requirement 1.

Close Dividends. Review the Balance Sheet columns of the worksheet completed in Requirement 1.