13) Pattie's Event Planning Service has just prepared the unadjusted trial balance, which shows the following balances:
Salary expense: Debit $6,000
Service revenues: Credit $20,000
Interest expense: 0
Pattie's salaries are $2,000 per week and are paid out at the end of the day on Fridays. The end of the month falls on a Thursday. She will make the appropriate accrual adjustment and post to the ledger. The final adjusted balance of Salary payable, as shown on the adjusted trial balance, will be a:
A) credit balance of $1,600.
B) credit balance of $3,600.
C) debit balance of $3,600.
D) credit balance of $400.
14) Pattie's Event Planning Service has just prepared the unadjusted trial balance, which shows the following balances:
Salary expense: Debit $8,000
Service revenues: Credit $3,000
Interest expense: 0
Late in this month, she began working with a new client, providing event planning services for an upcoming event. When the event is complete, in the following month, she will collect the full amount of $900 from her client. As of the end of this month, she has rendered one-third of the services covered by the contract. She makes accrual adjustments monthly. The final adjusted balance of Service revenues, as shown on the adjusted trial balance, should be a:
A) debit balance of $300.
B) credit balance of $3,900.
C) debit balance of $3,300.
D) credit balance of $3,300.
15) Pattie's Event Planning Service has just prepared the unadjusted trial balance, which shows the following balances:
Salary expense: Debit $8,000
Service revenues: Credit $3,000
Interest expense: 0
On the first day of January, Pattie borrowed $1,800 on a one-year note payable bearing interest at 4% per year. The note specifies that principal and interest is to be paid in full at the end of the one-year period. On June 30, the adjusted trial balance will show what amount for Interest expense?
A) Debit balance of $36
B) Credit balance of $36
C) Debit balance of $72
D) Debit balance of $6
Learning Objective 3-6
1) The financial statements should be prepared in this order: 1) income statement, 2) balance sheet, and 3) statement of retained earnings.
2) Net income from the income statement is reported in the assets section of the balance sheet.
3) Which of the following reports a company's results of operations?
A) Balance sheet
B) Statement of retained earnings
C) Adjusted trial balance
D) Income statement
4) Which of the following reports a company's financial position?
A) Balance sheet
B) Income statement
C) Adjusted trial balance
D) Statement of retained earnings
5) Prepare an income statement for the year ended December 31, 2012 from the adjusted trial balance below.
Deavours Photography Company
Adjusted Trial Balance
December 31, 2012
Accounts
|
Debit
|
Credit
|
Cash
|
$2,000
|
|
Prepaid insurance
|
2,000
|
|
Office supplies
|
600
|
|
Office equipment
|
16,000
|
|
Accumulated depreciation
|
|
$3,000
|
Accounts payable
|
|
5,000
|
Salaries payable
|
|
900
|
Unearned service revenue
|
|
2,500
|
Common stock
|
|
5,000
|
Retained earnings
|
|
2,450
|
Dividends paid
|
5,600
|
|
Service revenue
|
|
15,350
|
Salaries expense
|
4,600
|
|
Depreciation expense
|
1,000
|
|
Supplies expense
|
400
|
|
Insurance expense
|
2,000
|
|
Totals
|
$34,200
|
$34,200
|