Questions from College Accounting

Q: From the following trial balance taken after one month of operation,

From the following trial balance taken after one month of operation, prepare an income statement, a statement of owner’s equity, and a balance sheet.

Q: Joe Adams bought $500 worth of office supplies on account.

Joe Adams bought $500 worth of office supplies on account. The following entry was recorded on May 17. Find the error(s) and correct it (them) using the ruling method. On May 25, after the transactio...

Q: Annette Creighton opened Creighton Consulting. She rented a small office and

Annette Creighton opened Creighton Consulting. She rented a small office and paid a part-time worker to answer the phone and make deliveries. Her chart of accounts is as follows: Creightonâ€...

Q: The trial balance indicates that the supplies account has a balance,

The trial balance indicates that the supplies account has a balance, prior to the adjusting entry, of $320. A physical count of the supplies inventory shows that $90 of supplies remain. Analyze this a...

Q: A six-month liability insurance policy was purchased for $900

A six-month liability insurance policy was purchased for $900. Analyze the required adjustment as of December 31 using T accounts, and then formally enter this adjustment in the general journal.

Q: The trial balance shows wages expense of $600. An additional

The trial balance shows wages expense of $600. An additional $200 of wages was earned by the employees, but has not yet been paid. Analyze this adjustment for wages using T accounts, and then formally...

Q: Delivery equipment was purchased for $7,200. The delivery

Delivery equipment was purchased for $7,200. The delivery equipment has an estimated useful life of four years (48 months) and no salvage value. Using the straight-line depreciation method, analyze th...

Q: A depreciable asset was acquired for $6,840. The

A depreciable asset was acquired for $6,840. The asset has an estimated useful life of six years (72 months) and no salvage value. Using the straight-line depreciation method, calculate the book value...

Q: Describe the net effect of the four closing entries on the balance

Describe the net effect of the four closing entries on the balance of the owner’s capital account. Where else is this same amount calculated?

Q: Analyze each situation and indicate the correct dollar amount for the adjusting

Analyze each situation and indicate the correct dollar amount for the adjusting entry.