ACCT 001A Lecture Notes - Lecture 5: Accounting Information System, Retained Earnings, Balance Sheet

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pucemallard867

25 Jun 2020

School

Pasadena City College

Department

Accounting

Course

ACCT 001A

Professor

Hossain

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Document Summary

Prepaid expenses- balance sheet account: asset overstated, equity overstated; Income statement account: expense understated; adjusting entry: debit expense, Unearned revenues: liability is overstated, equity understated; revenue is understated; debit libability and credit revenue. Accrued expenses: liability is understated and equity overstated; expense understated, and debit expense and credit liability. Accrued revenues: asset understated and equity understated, revenue understated, debit asset and credit revenue. First the initial unadjusted amounts are added to the work sheet. The adjusted trial balance combines the unadjusted trial balance account balances with the adjustments we make. Income statement, retained earnings, balance sheet, cash flow, Retained earnings retained earnings + net income- dividends. Depr, for equity common stock come from general ledger. The closing process: temporary and permanent accounts. Temporary (nominal ) accounts accumulate data related to one accounting period. Include all income statement accounts, the dividends account, and the income summary account.

Related Questions

The period end adjusting entry for bad debt expense under the allowance method is

	Cash, debit; Accounts Receivable/customer name, credit.
	not required.
	Bad Debt Expense, debit; Accounts Receivable/customer name, credit.
	Bad Debt Expense, debit; Allowance for Uncollectible Accounts, credit.

Bach Instruments had total assets of $560,000; total liabilities of $250,000; and total Stockholders' Equity of $310,000. Bach's debt ratio is

44.6%.

28.7%.

80.6%.

55.4%.

The entry to record selling 300 shares of stated value $60 common stock for $70 per share would be

	debit Cash $21,000; credit Common Stock $18,000; credit Paid-in Capital in Excess of Stated Valueâ$3,000.
	debit Cash $21,000; credit Common Stock $21,000.
	debit Cash $18,000; debit Paid-in Capital in Excess of Stated Valueâ$3,000; credit Common Stock $21,000.
	debit Cash $18,000; credit Common Stock $18,000.

The Statement of Cash Flows reports the sources and uses of cash from all of the following EXCEPT

financing activities.

managerial activities.

operating activities.

On the Income Statement, the results of discontinued operations are reported

immediately after the extraordinary items section.

before the operating income section.

as part of other income (expense).

net of income tax or net of income tax savings.

By NOT accruing warranty expense

reported expenses will be understated, and net income will be understated.

reported expenses will be overstated, and reported liabilities will be understated.

reported liabilities will be understated, and net income will be overstated.

reported liabilities will be overstated, and net income will be understated.

The adjusting entry to record incurred but not yet paid employee wages includes

	a debit to Cash.
	a debit to Wages Payable.
	a debit to Wages Expense.
	a debit to Wages Earned.

The type of stock that does NOT carry paid-in capital in excess of par is called

	par stock.
	stated value stock.
	no-par stock.
	outstanding stock.

investing activities.

What was the percentage of change in Accounts Receivable if the balance was $80,000 in 2013 and $60,000 in 2014?

	+25.00%.
	+33.33%.
	-25.00%.
	-33.33%.

In accounting, what is the meaning of capitalized?

	Capitalized means that an asset account is debited (increased) for the cost of an asset.
	Capitalized means that the cost of an asset is recorded as a debit (increase) to expense.
	Capitalized means that a given city has been selected as a government center.
	Capitalized means that a liability account is credited (increased) for the cost of an asset.

byzantiumfly561

Bach Instruments had total assets of $560,000; total liabilities of $250,000; and total Stockholders' Equity of $310,000. Bach's debt ratio is

44.6%.

28.7%.

80.6%.

55.4%.

The entry to record selling 300 shares of stated value $60 common stock for $70 per share would be

	debit Cash $21,000; credit Common Stock $18,000; credit Paid-in Capital in Excess of Stated Valueâ$3,000.
	debit Cash $21,000; credit Common Stock $21,000.
	debit Cash $18,000; debit Paid-in Capital in Excess of Stated Valueâ$3,000; credit Common Stock $21,000.
	debit Cash $18,000; credit Common Stock $18,000.

The Statement of Cash Flows reports the sources and uses of cash from all of the following EXCEPT

financing activities.

managerial activities.

operating activities.

On the Income Statement, the results of discontinued operations are reported

immediately after the extraordinary items section.

before the operating income section.

as part of other income (expense).

net of income tax or net of income tax savings.

By NOT accruing warranty expense

reported expenses will be understated, and net income will be understated.

reported expenses will be overstated, and reported liabilities will be understated.

reported liabilities will be understated, and net income will be overstated.

reported liabilities will be overstated, and net income will be understated.

The adjusting entry to record incurred but not yet paid employee wages includes

	a debit to Cash.
	a debit to Wages Payable.
	a debit to Wages Expense.
	a debit to Wages Earned.

The type of stock that does NOT carry paid-in capital in excess of par is called

	par stock.
	stated value stock.
	no-par stock.
	outstanding stock.

investing activities.

What was the percentage of change in Accounts Receivable if the balance was $80,000 in 2013 and $60,000 in 2014?

	+25.00%.
	+33.33%.
	-25.00%.
	-33.33%.

In accounting, what is the meaning of capitalized?

	Capitalized means that an asset account is debited (increased) for the cost of an asset.
	Capitalized means that the cost of an asset is recorded as a debit (increase) to expense.
	Capitalized means that a given city has been selected as a government center.
	Capitalized means that a liability account is credited (increased) for the cost of an asset. please answer all the questions otherwise dont answer. TIA

ceriseturtle230

NEEDS ANSWERES ASAP

Question 17

A three column form of account is so named because it hascolumns for

		debit, credit, and balance.
		debit, credit, and date.
		debit, credit, and account name.
		debit, credit, and reference.

3 points

Question 18

The first step in designing a computerized accounting system isthe creation of the

		general ledger.
		general journal.
		trial balance.
		chart of accounts.

3 points

Question 19

Chik Chik Company showed the following balances at the end ofits first year:

Cash	$ 6,000
Prepaid insurance	$ 9,400
Accounts receivable	$ 7,000
Accounts payable	$ 5,600
Notes payable	$ 8,400
Common stock	$ 2,800
Dividends	$ 1,400
Revenues	$ 44,000
Expenses	$ 35,000

What did Chik Chik Company show as total credits on its trialbalance?

		$51,400
		$60,800
		$62,200
		$70,200

3 points

Question 20

Which of the following time periods would notbe referred to as an interim period?

		Monthly
		Quarterly
		Semi-annually
		Annually

3 points

Question 21

Crue Company had the following transactions during the calendaryear:
Sales of $4,800 on account
Collected $2,000 for services to be performed in the followingyear
Paid $1,625 cash in salaries
Purchased airline tickets for $250 in December for a trip to takeplace in the following year
What is Crue's current net income using accrual accounting?

		$2,925.
		$3,175.
		$4,925.
		$5,175.

3 points

Question 22

If an adjusting entry is not made for an accruedrevenue,

		revenues will be overstated.
		assets will be overstated.
		stockholders' equity will be understated.
		expenses will be understated

ACCT 001A Lecture Notes - Lecture 5: Accounting Information System, Retained Earnings, Balance Sheet

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