PRIZE QUESTION!
List the 4 objectives of the eight-column work sheet
What is...
1. Proving the ledger in the trial balance
2. Adjustments
3. Sort amounts into proper financial statements
4. Calculate net income or net loss
100
What are two examples of fixed assets?
What is buildings, land, vehicles, furniture, office equipment, machinery etc.
100
Define inventory
What is an itemized list showing the value of goods on hand.
100
What 2 accounts are used to adjust the supplies account? How are they adjusted?
What is Debit Supplies Expense and Credit Supplies
100
What was the supplies account listed at in the Trial Balance if the following adjustments were made to get the Supplies account to $500.00 at the end of the period.
Debit Supplies Expense $120.00 and Credit Supplies $120.00
What is $620.00
200
True or False
If an account has a balance of zero it is not listed in the trial balance of the work sheet.
What is false!
All accounts are listed regardless of whether there is a balance or not.
200
Why does a business estimate the amount of bad debts expense at the end of a fiscal period?
What is a business does not know which specific accounts will become uncollectible in the future
200
An itemized list showing the value of goods on hand for sale to customers
What is merchandise inventory
200
What 2 accounts are used to adjust the prepaid insurance account? How are they adjusted?
What is Debit Insurance Expense and Credit Prepaid Insurance
200
Bad debts expense is listed at 0 in the trial balance but should be $50.00 at the end of the period. List the adjustments needed to get the bad debts expense account up to date.
What is Debit Bad Debts Expense $50.00 and Credit Allowance for Uncollectible Accounts $50.00
300
DAILY DOUBLE!
If the supplies account is listed at a debit balance of $400.00 in the trial balance and there is an adjustment crediting the account $200.00 what will supplies be listed at in the balance sheet?
What is a debit balance of $200.00
300
Why are all general ledger accounts listed in the Trial Balance columns of a work sheet whether they have balances or not?
What is to reduce the possibility of overlooking an account needing to be brought up to date
300
Assets which will be used for a number of years in the operation of a business
What is fixed assets
300
What 2 accounts are used to adjust the bad debts expense account? How are they adjusted?
What is Debit Bad Debt Expense and Credit Allowance for Uncollectible Accounts
300
Merchandise inventory is listed at $80 000.00 in the trial balance and should be $85 000.00 according to end-of-period information. What adjustments need to be made to get merchandise inventory up to date?
What is Debit Merchandise Inventory $5 000.00 and Credit Income Summary $5 000.00
400
What are the 4 questions/steps you are supposed to ask/follow when analyzing an adjustment?
What is...
1. What is the balance of the account?
2. What should the balance be for this account?
3. What must be done to correct the account balance?
4. What adjusting entry is made?
400
PRIZE QUESTION
Name the song and artist that go along with these lyrics:
"Am I original? Yeah..Am I the only one?..Yeah.....Backstreet's back, alright!"
What is the song Everybody (Backstreet's Back) by the Backstreet Boys
400
Fixed assets such as trucks, computers, and display cases are called?
What is equipment
400
What 2 accounts are used to adjust the merchandise inventory account? How are they adjusted?
What is Debit Income Summary and Credit Merchandise Inventory
400
Prepaid insurance is recorded at $500.00 in the trial balance and should be $401.00 at the end of the period. What adjustments need to be made?
What is Debit Insurance Expense $99.00 and Credit Prepaid Insurance $99.00
500
True or False
The Income Statement includes Income Summary, Sales, Accumulated Depreciation, and Expenses
What is false. The income statement does not include Accumulated Depreciation.
500
Why does a business need to record an estimate of bad debts expense at the end of a fiscal period? (2)
What is...
A. Estimated amount must be included in the income statement as an expense for the fiscal period in which the sales on account are made.
B. Recording the estimated amount prevents the overstatement of the accounts receivable value on the balance sheet.
500
Define Depreciation
What is the portion of fixed asset's cost transferred to an expense account in each fiscal period during a fixed asset's useful life
500
What 2 accounts are used for a depreciation adjustment? How are they adjusted?
What is Debit Depreciation Expense-Equipment and Credit Accumulated Depreciation-Equipment
500
PRIZE QUESTION!
After adjustments, Depreciation expense - equipment is recorded at $500.00. If the balance of depreciation expense - equipment was 0 in the trial balance what exact adjustments were made to get to $500.00?
What is Debit Depreciation Expense - Equipment $500.00 and Credit Accumulated Depreciation - Equipment $500.00