173. If working papers are not considered part of the formal accounting records, then why are they used?
174. Explain how net income or loss is determined by using the work sheet.
175. The balances for the accounts listed below appeared in the Adjusted Trial Balance columns of the work sheet. Indicate whether each balance should be extended to (a) the Income Statement columns or (b) the Balance Sheet columns.
(1)Salaries Payable(7)Retained Earnings
(2)Fees Earned(8)Equipment
(3)Accounts Payable(9)Accounts Receivable
(4)Capital Stock(10)Accumulated Depreciation
(5)Supplies Expense(11)Salary Expense
(6)Unearned Rent(12)Depreciation Expense
176. Indicate whether each of the following would be reported in the financial statements as a(n) (a) current asset, (b) current liability, (c) revenue, or (d) expense:
(1)Supplies(5)Supplies Expense
(2)Unearned Fees(6)Prepaid Insurance
(3)Prepaid Advertising(7)Accounts Payable
(4)Advertising Expense(8)Fees Earned