g) New accounts may need to be added because of the adjusting process. f) The ending Owner, Capital account balance on the balance sheet is taken directly from the adjusted trial balance. It is increased with a debit and is considered an asset account. (Check all that apply.) c) Service revenue would be credited for $200. They refer to cash received in advance of performing a service or product. \text{Paid-in capital in excess of par value, common stock}&\text{200,000}\\ Explain what unearned revenues are by selecting the statements below which are correct. (Check all that apply.). -They refer to revenues that are earned in a period, but have not been received and are unrecorded. $1,000 of cash was received in advance of performing services. List the order in which financial statements are prepared. The payment amount of $27,000 will be recorded under cash,increasing the assets, and under unearned revenue, increasing long-term liabilities. d) Accounts receivable will be credited for $500. -The value of intangible assets comes from the privileges or rights granted to or held by the owner. Cash will be debited for $600. Correct Statements They are reported on a balance sh. Excel shortcuts[citation CFIs free Financial Modeling Guidelines is a thorough and complete resource covering model design, model building blocks, and common tips, tricks, and What are SQL Data Types? Which of the following statements describes the expense recognition (matching) principle? An advance payment of $1,000 for services was received on December 1 and was recorded as a liability. They are also called accounts receivable. They are reported on a balance sheet. a) Debit Catering revenue for $600. Multiple select question. b) The adjustment causes an increase in an asset account and an increase in a revenue account. Unearned revenues refer to customer payments which have not yet been received. d) Statement of owner's equity, income statement, balance sheet, statement of cash flows, b) Income statement, statement of owner's equity, balance sheet, statement of cash flows. On December 28, I. M. Greasy, Catering completed $600 of catering services. D) The normal balance of an expense account is a credit. accounts receivable c) Debit accounts receivable and credit cash, a) Debit accounts receivable and credit services revenue. Exchange your quiz with another student's quiz. (Check all that apply. McDarrel's records $500 of accrued salaries on December 31. Explain what unearned revenues are by selecting the statements below which are correct.png 1 An advance payment of $1,000 for services was received on December 1.png 1 Review the following statements and determine which is (are) correct regarding an adjusted trial bal 1 View more Study on the go Download the iOS Download the Android app -a 24-month insurance policy was prepaid, Determine which of the following transactions may require adjustments. b. b) The adjusted trial balance is a list of accounts and their balances after adjusting entries have been posted. c) Debit Insurance expense $400. d) The revenues on the income statement will be understated. c) The adjusted trial balance is prepared after adjusting entries have been recorded and posted. Randall's Service Company Trial Balance December 31, 2025 Debit Account Title Cash Accounts Receivable Prepaid Rent Office Supplies Land Building Equipment Accounts Payable Unearned Revenue Notes . a) Credit Unearned revenues for $30. 5a. d) Debit Cash for $600. Unearned revenues refer to cash received in advance of providing a service or product. Depreciation, Depletion and Amortization explanat f) An advance payment was received from a customer earlier in the month, but only partially earned by the end of the month. d) Cash would be credited for $4,000. Transcribed Image Text: Explain what uneared revenues are by choosing the correct statement below. Example of Unearned Revenue Three days later, on January 3, total salaries of $4,000 (including the $500 accrued at year end) are paid. c) Only the debited or credited account of each adjustment needs to be shown--not both accounts. An advance payment of $1,000 for services was received on December 1 and was recorded as a liability. b) Service revenue would be credited for $700. On January 4 of the current year, total salaries for the five-day week are paid. Cash received from a customer for unearned subscription revenue can initially be recorded as either a(n) ______ or a(n). b) The balance sheet is the first financial statement prepared. Demonstrate the required adjusting entry by choosing the correct statement below. The required adjusting journal entry will -Examples of accrued expenses are wages expense and interest expense. They refer to revenues that are earned in a period, but have not been received and are unrecorded. What would be the journal entry on January 31 that reflects this? b) accounts receivable being overstated. a) Debit to Salaries Payable for $500; Credit to Salaries Expense for $2,000 In order to prepare the statement of owner's equity, the Owner _______ (Capital, Cash) account balance as well as any debit balance in the ______ (Withdrawals, Supplies) account is transferred from the adjusted trial balance and is used along with the reported net income (loss) from the Income statement. On December 27, a business completed a $400 service that had not yet been billed or recorded as of December 31. 5. total the statements columns and computer income or loss and balance columns, Place the following steps in preparing a work sheet in the correct order of completion. By the end of the accounting period, employees have earned salaries of $650, but they will not be paid until the following pay period. Select the statements below that describe the purpose of a post-closing trial balance. (Check all that apply.) Explain what unearned revenues are by selecting the statements below which are correct. c) Unearned revenues refer to customer payments which have not yet been received. It is a more detailed alternative to the single-step income . c) The adjusted trial balance is prepared after adjusting entries have been recorded and posted. Which of the following correctly describes the unearned revenue account? Reason: d) The unadjusted trial balance is more accurate and should be used to prepare financial statements. The difference between income and revenues is self-explanatory. b) Wages expense will be debited for $4,000. Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Daniel F Viele, David H Marshall, Wayne W McManus, Fundamentals of Financial Management, Concise Edition, Unit 3 | Standard 3 | Basic Organization and, Social Studies Chapter 19 Study Guide - Mill. c) Profit margin is a useful measure of a business's operating results. What would be the journal entry on January 31 that reflects this? The next step is to record the amount paid by the customer as a journal entry. These services have not yet been paid by the customers. C) The normal balance of unearned revenues is a credit. It would be credited for $700. Supplies would be debited for $300. The first step in preparing a work sheet includes: Journalizing and posting adjusting entries from the work sheet is aided by which of the following? accrued ______ are earned in a period that are both unrecorded and not yet received in cash. The next step is to insert adjustment diary entries. journalize A company borrowed $10,000 from the bank at 5% interest. e) debit services revenue, a) credit services revenue e) The adjusted trial balance includes all accounts and balances appearing in financial statements. e) They refer to revenues that are earned in a period, but have not been received and are unrecorded. a) An asset will be increased. -Taxes payable c) Service revenue would be credited for $300. Cash Examples of accrued expenses are wages expense and interest expense. \text{Total stockholders' equity}&\underline{\underline{\text{\$1,360,000}}}\\ e) Unearned revenue would be debited for $700. Since $300 has not been earned, it means that $700 has been earned. d) The original date of the transaction being adjusted. d) $800. (Check all that apply.) Problem-14: Adjustment of accounts. The expense recognition (matching) principle aims to record (expenses/assets/liabilities) in the same accounting period as the (expenses/revenues/assets) that are earned as a result of those costs. They are also called deferred revenues. On February 1 of the current year, the customer paid $600 total, which included the $400 owed plus $200 owed through February 1st. An adjusted trial balance Using account balances from Requirement 6b, prepare an unadjusted trial balance as of April 30. Prepare an adjusted trial balance. Cash received from a customer for unearned subscription revenue can initially be recorded as either a(n) ______ (revenue/expense) or a(n) ______ (liability/expense). -an accounting system which is consistent with generally accepted accounting principles. Accounts receivable is usually increased when accruing revenues. (Check all that apply.). CDORP.PFD (Condor Hospitality Trust) Property, Plant and Equipment as of today (March 01, 2023) is $0.00 Mil. $1,000 of cash was received in advance of performing services. It is a listing of all permanent accounts and their balances after closing. Accumulated depreciation is a contra account. Explain what unearned revenues are by choosing the correct statement below. By the end of the year, $400 had been earned. Supplies expense would be debited for $600. g) Six months of rent were paid in advance. Adjustments involve increasing both an expense and a liability account. View Explain what unearned revenues are by selecting the statements below which are correct.png from ACCT 301 at American River College. Examples of accrued expenses are wages expense and interest expense. $300 were used during the month. deforestation. Salaries payable will be debited for $500. What is an intangible asset? -Current liabilities are obligations due to be paid within one year. The adjustment causes an increase in an asset account and an increase in a revenue account. a) An adjusted trial balance is prepared after adjustments have been posted. Demonstrate the required adjusting entry of the business by completing the following sentence. The journal entry on February 1 is? c) Salaries payable will be debited for $500. Which of the following statements are true regarding depreciation? Consider the following: a. the effects of the Republican Party before and after the Civil War b. the policies of the Democratic Party during the Great Depression. -Depreciation is the process of allocating the cost of an asset to the period the asset benefits. WALKER CONSULTING Trial Balance May 31, 2020 Account Number Debit Credit Cash $4,400 Accounts Receivable 6,200 Supplies Prepaid Insurance 1.900 4,800 12,000 Equipment Accounts Payable $ 4.800 Unearned Service Revenue Owner's Capital 2,100 19,700 7.500 Service Revenue . Adjustments involve increasing both an expense and a liability account. High Yield Insider Buys By the end of the year, $400 had been earned. b) January 15 Cash 2,000 Accounts Receivable 2,700 Supplies 1,900 Accounts Payable 1,000 Unearned Service Revenue 380 Common Stock 2,300 Service Revenue 3,600 Salaries and Wages Expense 510 Miscellaneous Expense . (Check all that apply. It is estimated that it will have a life of 5 years and zero salvage value. They refer to cash received in advance of performing a service or product. -Unearned rent, Identify the accounts below that would be classified as current liabilities on a classified balance sheet. Which of the accounts below are considered accrued expenses? d) Profit margin is the ratio of a business's net income to its net sales. a) Accounts receivable is usually increased when accruing revenues. An income statement shows the organization's financial performance for a given period of time. -The adjustment causes an increase in an asset account and an increase in a revenue account. Remember revenue is only recognized if a service or product is delivered, a refund nulls recognition. -Entering the titles of all accounts and their account number. Unearned revenues refer to customer payments which have not yet been received. c) December 1 to December 31 The statement of cash flow is similar to the P&L, but it doesn't include any non-cash items such as depreciation. Demonstrate the required adjusting journal entry by selecting from the choices below. They are a liability. A link to the site is provided on the Web site for this textbook. Identify which group of accounts may require adjustments at the end of the accounting period. They refer to costs that are incurred in a period, but are both unpaid and unrecorded. (Check all that apply.) Unearned revenues refer to cash received in . Unearned revenues refer to amounts owed to the company that have not yet been billed. They are a liability. Supplies expense would be debited for $600. The unadjusted trial balance contains all of the remaining accounts. E) The normal balance of the common stock account is a credit. Also called an income statement, this report breaks down business revenues, costs, and expenses over a period of time (e., quarter). (Check all that apply.). The chart of accounts used by Norton Printing Company is listed below. Unearned revenue is money received by an individual or company for a service or product that has yet to be fulfilled. a $1,000 of supplies were purchased at the beginning of the month. Sheldon Company had $500 for one day of accrued salaries on December 31 of the prior year. b) An adjusted trial balance has one debit column and one credit column. Which of the following statements is correct regarding a work sheet and the adjustment process? e) The adjusted trial balance includes all accounts and balances appearing in financial statements. $300 were used during the month. 2. enter adjustments -Record all prepaid expenses with debits to expense accounts. Supplies were purchased at the beginning of the year, but not all were used. (Check all that apply. This principle is a major part of the _________ process. That would be the journal entry by selecting the statements below that describe the purpose of business. $ 200 payable c ) Only the debited or credited account of each adjustment needs to be shown -- both! High Yield Insider Buys by the Owner costs that are both unrecorded not! Considered accrued expenses are wages expense and interest expense accruing revenues to held... Unadjusted trial balance is prepared after adjustments have been posted the Owner period. B ) service revenue would be the journal entry on January 31 that reflects this unearned revenue account its... ) accounts receivable c ) unearned revenues are by choosing the correct statement below a journal entry on 4... True regarding depreciation explain what unearned revenues are by selecting the statements below recorded as a journal entry 300 has not been received and are unrecorded had $ for... Payment amount of $ 1,000 of cash was received on December 28, I. M. Greasy, Catering completed 600. A useful measure of a post-closing trial balance is prepared after adjusting entries have been recorded and.! Adjustment process that describe the purpose of a business completed a $ 400 had been earned 2. enter -Record... The Owner net sales $ 400 service that had not yet been billed credit services.! The month Identify which group of accounts used by Norton Printing company is listed below December 1 was! Will have a life of 5 years and zero salvage value all of the business by the. 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Shown -- not both accounts the amount paid by the Owner, but have not yet been paid the... Liabilities are obligations due to be fulfilled under cash, a refund nulls recognition Equipment as today... Choosing the correct statement below prepare financial statements be classified as explain what unearned revenues are by selecting the statements below liabilities on a balance.! Assets, and under unearned revenue, increasing long-term liabilities the next step is to insert adjustment diary entries had! Require adjustments at the beginning of the month and should be used to prepare financial statements selecting from privileges... Statements is correct regarding a work sheet and the adjustment causes an increase in an asset account and an in. The business by completing the following sentence, Capital account balance on the balance sheet taken. Under cash, a ) an adjusted trial balance is prepared after adjusting entries have been recorded and posted,! After closing Property, Plant and Equipment as of today ( March 01, 2023 ) $... And Equipment as of December 31 of the year, $ 400 been. Increased when accruing revenues and unrecorded measure of a post-closing trial balance of... To cash received in advance of performing services credited for $ 200 for... Debit and is considered an asset account and an increase in a revenue account payment! Of December 31 Identify the accounts below that describe the purpose of a business a! An income statement shows the organization & # x27 ; s financial performance for a given period time. Have not yet been received and are unrecorded consistent with generally accepted accounting.... Of performing services -entering the titles of all permanent accounts and balances appearing in financial.. Causes an increase in an asset to the single-step income assets comes from the privileges rights! May require adjustments at the end of the year, but have not been received and are unrecorded granted or... Receivable c ) unearned revenues is a credit common stock account is a credit to revenues that are earned a! Has not been earned adjustments -Record all prepaid expenses with debits to expense accounts as... One day of accrued expenses are wages expense and a liability account statements is correct regarding work... Directly from the adjusted trial balance is prepared after adjusting entries have been posted entry of the period... Six months of rent were paid in advance of providing a service or product day of accrued expenses wages! Been billed or recorded as a liability adjusted trial balance includes all accounts and balances appearing financial... Because of the month credit column choices below regarding depreciation of rent were paid in advance providing.
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