Questions from Financial Accounting


Q: Mayes Company records all prepayments in income statement accounts. At April

Mayes Company records all prepayments in income statement accounts. At April 30, the trial balance shows Supplies Expense $2,800, Service Revenue $9,200, and zero balances in related balance sheet a...

See Answer

Q: The ledger of Clayton Company includes the following unadjusted balances: Prepaid

The ledger of Clayton Company includes the following unadjusted balances: Prepaid Insurance $3,000, Service Revenue $58,000, and Salaries and Wages Expense $25,000. Adjusting entries are required fo...

See Answer

Q: The ledger of Rios Company contains the following balances: Retained Earnings

The ledger of Rios Company contains the following balances: Retained Earnings $30,000, Dividends $2,000, Service Revenue $50,000, Salaries and Wages Expense $27,000, and Supplies Expense $7,000. Pre...

See Answer

Q: At Creighton Company, the following errors were discovered after the transactions

At Creighton Company, the following errors were discovered after the transactions had been journalized and posted. Prepare the correcting entries. 1. A collection on account from a customer for $87...

See Answer

Q: Prepare the closing entries for the Sales Revenue account, assuming a

Prepare the closing entries for the Sales Revenue account, assuming a balance of $200,000 and the Cost of Goods Sold account with a $145,000 balance.  

See Answer

Q: The balance sheet debit column of the worksheet for Hamidi Company includes

The balance sheet debit column of the worksheet for Hamidi Company includes the following accounts: Accounts Receivable $12,500, Prepaid Insurance $3,600, Cash $4,100, Supplies $5,200, and Debt Inve...

See Answer

Q: The following are the major balance sheet classifications:Current assets

The following are the major balance sheet classifications: Current assets (CA) Current liabilities (CL) Long-term investments (LTI) Long-term liabilities (LTL) Property, plant, and equipment (PPE...

See Answer

Q: At October 31, Burgess Company made an accrued expense adjusting entry

At October 31, Burgess Company made an accrued expense adjusting entry of $2,100 for salaries. Prepare the reversing entry on November 1, and indicate the balances in Salaries and Wages Payable and...

See Answer

Q: Presented below are the components in Gates Company’s income statement. Determine

Presented below are the components in Gates Company’s income statement. Determine the missing amounts.  

See Answer

Q: Radomir Company buys merchandise on account from Lemke Company. The selling

Radomir Company buys merchandise on account from Lemke Company. The selling price of the goods is $780, and the cost of the goods is $470. Both companies use perpetual inventory systems. Journalize...

See Answer