11Which of the following statements is a TRUE statement about the worksheet?
A) Net income is recorded in the income statement credit column.
B) Net income is recorded in the adjusted trial balance debit column.
C) Net income is recorded in the income statement debit column.
D) Net income is recorded in the balance sheet debit column.
12Which of the following is TRUE if the income statement debit column exceeds the income statement credit column on a worksheet?
A) The company has a net loss.
B) The Retained earnings account increased during the period.
C) The company has net income.
D) Liabilities are greater than assets
13Which of the following is TRUE of a completed worksheet?
A) The total debits in the trial balance column equal the total debits in the adjusted trial balance column.
B) The total debits in the income statement column equal the dividends paid.
C) The total debits in the income statement column equal the total debits in the balance sheet column.
D) The total debits equal the total credits in each column.
14Which of the following adjusted balances would appear in the balance sheet credit column of a worksheet?
A) Rent revenue
B) Insurance expense
C) Salary payable
D) Equipment
15Where does net income appear on a worksheet?
A) Net income appears only in the income statement debit column.
B) Net income appears in the balance sheet credit column and in the income statement debit column.
C) Net income appears in the income statement credit column and in the balance sheet debit column.
D) Net income appears only in the balance sheet credit column.
16What is TRUE if the income statement credit column exceeds the income statement debit column on a worksheet?
A) The company has a net income.
B) The company has a net loss.
C) The Retained earnings account decreased during the period.
D) Total liabilities exceed total assets.
17In which of the columns of the worksheet would a net loss be found?
A) In the balance sheet credit column and the income statement debit column
B) In the balance sheet debit column and the income statement credit column
C) In the trial balance credit column, the adjusted trial balance credit column and the balance sheet credit column
D) In the trial balance debit column, the adjusted trial balance debit column and the balance sheet debit column
18Prepaid rent in the worksheet's trial balance column is $4,000. Prepaid rent in the balance sheet column is $2,000. Which of the following entries would have caused this difference?
A) A $2,000 debit entry to Prepaid rent in the worksheet's adjustments column
B) A $2,000 credit entry to Rent expense in the worksheet's adjustments column
C) A $2,000 credit entry to Prepaid rent in the worksheet's adjustments column
D) A $2,000 debit entry to Cash in the worksheet’s adjustments column
19Interest expense in the worksheet's trial balance column is $3,000. Interest expense in the income statement column is $7,000. Which of the following entries would have caused this difference?
A) A $7,000 credit to Interest expense in the worksheet's adjustments column
B) A $7,000 credit to Interest payable in the worksheet's adjustments column
C) A $4,000 debit to Interest expense in the worksheet's adjustments column
D) A $4,000 credit to interest expense in the worksheet’s adjustments column
20Please refer to the worksheet below.
Account TitleDr.Cr.Dr.Cr.Dr.Cr.Dr.Cr.Dr.Cr.
Cash$1,700$1,700$1,700
Accounts receivable8,500$2,00010,50010,500
Supplies100$802020
Equipment7,5007,5007,500
Accumulated depreciation.$2,000240$2,240 $2,240
Accounts payable1,2001,2001,200
Salary payable800180980980
Unearned revenue600600600
Common stock1,0001,0001,000
Retained earnings2,4002,4002,400
Dividends2,3002,3002,300
Service revenue40,0002,00042,000$42,000
Salary expense24,00018024,180$24,180
Supplies expense2,300802,3802,380
Depreciation expense1,6002401,8401,840
$48,000$48,000$2,500$2,500$50,420$50,420$28,400 $42,000 $22,020 $8,420
13,60013,600
$42,000$42,000$22,020 $22,020
How much was the Net income?
A)$42,000
B)$13,600
C) $22,020
D) $28,400