61) The dollar amount for Accounts Receivable in the Adjusted Trial Balance Debit column of a Trial Balance Worksheet is obtained by:
A) Taking the Unadjusted Trial Balance Debit column plus the Debit Adjustments column minus the Credit Adjustments column
B) Taking the Unadjusted Trial Balance Debit column
C) Taking the Unadjusted Trial Balance Credit column
D) Taking the Unadjusted Trial Balance Credit column plus closing entries
62) In lieu of using the Trial Balance Worksheet to prepare the financial statements, an accountant can use the:
A) journal.
B) ledger.
C) prior period financial statements.
D) prior period audit report.
63) A Trial Balance Worksheet lists:
A) balance sheet accounts only.
B) income statement accounts only.
C) Retained Earnings at the beginning of the accounting period and Dividends Declared.
D) all of the above.
64) The Schauer Company had the following adjustments at December 31, 2015, the end of the accounting period:
A.The Schauer Company uses straight-line depreciation for its equipment. The cost of the equipment is $105,000 and the useful life is 5 years.
B.Accrued interest of $10,000 on a note receivable will be received in January.
C.On November 1, 2015, the Schauer Company paid $3,000 for six months of rent in advance. The rental period is November 1, 2015 through April 30, 2016.
D.On August 1, 2015, the company collected $24,000 in advance for a consulting contract, which is to be earned evenly over the next 24 months.
E.Employees are owed salaries for 3 days of a 5 day workweek; weekly payroll is $30,000.
F.The unadjusted balance of the supplies account is $2,750. Based on a physical count, the cost of supplies on hand is $1,000.
G.The company has incurred interest expense of $1,000 that will be paid in January.
Requirements:
1.Journalize the adjusting entries. Explanations are not required.
2.Assuming the adjustments were not made, calculate the net overstatement or understatement this would have on net income. Would the company appear to be more or less profitable if the adjustments were not made?
65) Journalize the adjusting entries needed on December 31, 2015 for Kaimann Industries using the following data. Explanations are not required.
A.The balance in the Supplies account before adjustment is $5,000. A physical count reveals $2,750 of supplies on hand at December 31.
B.A computer was purchased on January 1, 2015 for $15,000. The computer has a useful life of 3 years and is depreciated using the straight-line method.
C.A one-year insurance policy costing $6,000 was purchased on November 1, 2015.
D.Employee salaries are owed for 4 days of a regular 5 day work week. Weekly payroll is $15,000.
E.Unearned Maintenance Revenue has a balance of $22,000 before adjustment. Records show that $14,000 of that amount has been earned by December 31.