Study Your Guide - Salt Lake City School Districtstaffsites.slcschools.org/sraymond/accounting...
14
Study Guide Name Analyzing Accounts Affected by Adjusting and Closing Entries Examining Adjusting and Closing Entries Analyzing the Accounting Cycle for a Merchandising Business Organized as a Corporation Total Perfect Score 24 Pts. 1 8 Pts. 9 Pts. 51 Pts. Your Score Part One—Analyzing Accounts Affected by Adjusting and Closing Entries Directions: For each adjusting or closing entry described, decide which accounts are debited and credited. Print the letter identifying your choice in the proper Answers column. Account Title A. Accumulated Depreciation—Office Equipment B. Accumulated Depreciation—Store Equipment C. Allowance for Uncollectible Accounts D. Dividends E. Depreciation Expense— Office Equipment F. Depreciation Expense— Store Equipment G. Federal Income Tax Expense H. Federal Income Tax Payable I. Income Summary J. Insurance Expense K. Merchandise Inventory L. Prepaid Insurance M. Purchases N. Retained Earnings O. Sales P. Supplies—Office Q. Supplies—Store R. Supplies Expense—Office S. Supplies Expense—Store T. Uncollectible Accounts Expense Transaction 1-2. Adjusting entry for allowance for uncollectible accounts, (p. 482) 3-4. Adjusting entry for a decrease in merchandise inventory, (p. 482) 5-6. Adjusting entry for office supplies, (p. 483) 7-8. Adjusting entry for store supplies, (p. 483) 9-10. Adjusting entry for prepaid insurance, (p. 484) 11-12. Adjusting entry for depreciation of office equipment, (p. 484) 13-14. Adjusting entry for depreciation of store equipment, (p. 485) 15-16. Adjusting entry for federal income taxes, (p. 485) 17-18. Closing entry for the sales account, (p. 488) 19-20. Closing entry for the purchases account, (p. 490) 21-22. Closing entry for the income summary account with a net income, (p. 491) 23-24. Closing entry for dividends, (p. 491) Accounts to Be Debited Credited COPYRIGHT © SOUTH-WESTERN CENGAGE LEARNING Chapter 16 • 421
Transcript of Study Your Guide - Salt Lake City School Districtstaffsites.slcschools.org/sraymond/accounting...
StudyGuide
Name
Analyzing Accounts Affected by Adjusting and Closing EntriesExamining Adjusting and Closing Entries
Analyzing the Accounting Cycle for a Merchandising BusinessOrganized as a Corporation
Total
PerfectScore
24 Pts.
1 8 Pts.
9 Pts.
51 Pts.
YourScore
Part One—Analyzing Accounts Affected by Adjusting andClosing EntriesDirections: For each adjusting or closing entry described, decide which accountsare debited and credited. Print the letter identifying your choice in the properAnswers column.
Account TitleA. Accumulated
Depreciation—OfficeEquipment
B. AccumulatedDepreciation—StoreEquipment
C. Allowance forUncollectible Accounts
D. Dividends
E. Depreciation Expense—Office Equipment
F. Depreciation Expense—Store Equipment
G. Federal Income TaxExpense
H. Federal Income TaxPayable
I. Income Summary
J. Insurance Expense
K. Merchandise Inventory
L. Prepaid Insurance
M. Purchases
N. Retained Earnings
O. Sales
P. Supplies—Office
Q. Supplies—Store
R. Supplies Expense—Office
S. Supplies Expense—Store
T. Uncollectible AccountsExpense
Transaction
1-2. Adjusting entry for allowance for uncollectibleaccounts, (p. 482)
3-4. Adjusting entry for a decrease in merchandiseinventory, (p. 482)
5-6. Adjusting entry for office supplies, (p. 483)
7-8. Adjusting entry for store supplies, (p. 483)
9-10. Adjusting entry for prepaid insurance, (p. 484)
11-12. Adjusting entry for depreciation of officeequipment, (p. 484)
13-14. Adjusting entry for depreciation of storeequipment, (p. 485)
15-16. Adjusting entry for federal income taxes,(p. 485)
17-18. Closing entry for the sales account, (p. 488)
19-20. Closing entry for the purchases account, (p. 490)
21-22. Closing entry for the income summary accountwith a net income, (p. 491)
23-24. Closing entry for dividends, (p. 491)
Accounts to Be
Debited Credited
COPYRIGHT © SOUTH-WESTERN CENGAGE LEARNING Chapter 16 • 421
Part Two—Examining Adjusting and Closing EntriesDirections: Place a T for True or an F for False in the Answers column toshow whether each of the following statements is true or false.
Answers
1. General ledger account balances are changed only by posting journal entries, (p. 481) 1.
2. Adjusting entries bring subsidiary ledger accounts up to date. (p. 481) 2.
3. Hobby Shack records the adjusting entries in the general journal on the next line following 3.the last daily transaction, (p. 481)
4. Indicating a source document is not necessary when journalizing adjusting entries, (p. 481) 4.
5. Temporary accounts are closed at the end of a fiscal period to prepare the general ledger 5.for the next fiscal period, (p. 487)
6. Closing the temporary accounts at the end of a fiscal period is an application of the 6.accounting concept Matching Expenses with Revenue, (p. 487)
7. A temporary account is closed by recording an equal amount on the side opposite the 7.balance, (p. 487)
8. The Trial Balance columns of a work sheet and an income statement contain the 8.information needed to journalize closing entries, (p. 487)
9. Permanent accounts are sometimes referred to as nominal accounts, (p. 487) 9.
10. The ending account balances of permanent accounts for one fiscal period are the beginning 10.account balances for the next fiscal period, (p. 487)
11. Contra accounts with credit balances are closed by debiting the accounts and crediting 11.Income Summary, (p. 488)
12. Expense accounts are closed by debiting the expense accounts and crediting Income 12.Summary, (p. 489)
13. The Income Summary account is closed into the Retained Earnings account, (p. 491) 13.
14. Dividends increase the earnings retained by a corporation, (p. 491) 14.
15. After the closing entry for the Dividends account is posted, the Dividends account has a 15.zero balance, (p. 491)
16. After all closing entries are posted, the income statement accounts are the only general 16.ledger accounts that have balances, (p. 494)
17. When the general ledger is ready for the next fiscal period, this is an application of the 17.Business Entity accounting concept, (p. 494)
18. The purpose of the post-closing trial balance is to prove the general ledger equality of 18.debits and credits, (p. 496)
422 • Working Papers CENTURY 21 ACCOUNTING, 9TH EDITION
Name Date Class
Part Three—Analyzing the Accounting Cycle for a MerchandisingBusiness Organized as a CorporationDirections: Write a number from 1 to 9 to the left of each step to indicate the correct sequence ofall the steps in the accounting cycle, (p. 497)
Answers
1. Post journal entries to the subsidiary ledgers and the general ledger.
2. Check source documents for accuracy, and analyze transactions into debit and credit parts.
3. Journalize adjusting and closing entries from the work sheet.
4. Record transactions in journals, using information on source documents.
5. Prepare the schedules of accounts payable and accounts receivable, using information fromthe subsidiary ledgers.
6. Prepare a post-closing trial balance of the general ledger.
7. Prepare financial statements from the work sheet.
8. Post adjusting and closing entries to the general ledger.
9. Prepare a work sheet, including a trial balance, from the general ledger.
COPYRIGHT © SOUTH-WESTERN CENGAGE LEARNING Chapter 16 • 423
StudySkills
Making a Speech
You will often be responsible for making a speech or presentation while you are in school and after schoolas well. Many people fear speaking in front of others, but it is actually very easy if you are well prepared.
Choosing Your TopicYour topic must be of interest to your audience and one that you can cover adequately in the time available.A common error that students make is to pick a topic that is so broad that they cannot really cover the topicin a short speech. The result is that the speech may ramble and not make any real points. Another errorstudents sometimes make is that they use only one idea. In this case, they may simply make the same pointover and over.
Practicing Your TalkYou should always practice giving your speech before you actually make it before the group. Practicing willhelp you work out any rough spots, and it will make you feel much more at ease when you make the actualpresentation.
A good technique is to give the talk in front of a mirror. Watching yourself while speaking can be verydistracting, but it will give you valuable practice in keeping on the subject and avoiding distractions.
Your AppearanceOn the day you are to give your talk, be sure to be well rested, and be sure to dress appropriately. Whenyou are introduced, walk directly to the platform. Stand straight without slouching or leaning on the deskor lectern. A sloppy appearance will detract from your talk.
Giving Your SpeechIn most cases you should not read a speech. You should talk to the members of the audience, following theideas from notes that you have made.
When you begin your talk, start with a point that will gain the attention of the group. It is not necessaryto try to tell a joke. If you do not get the attention of the group at the outset, however, you may have troublemaintaining their interest.
Each point should be easy to understand, and you may illustrate it with examples that are clearly relatedand support the point. When you proceed to the next point, you should make it clear to the group that youare moving to the next item of interest.
A common error is to direct your talk to only one person in the audience, particularly someone whoagrees with your points. However, you are speaking to all members of the audience and you should lookat all of them.
After you have made your major points, you should summarize briefly. Your conclusions should bebased on the material that you have presented and should be easy to follow. Your talk should end on astrong note, and you should then stop. A common error is for a speaker to repeat the conclusion severaltimes, allowing the speech to end on a low note.
Keep on TimeKeep your speech to the allotted time. If you have 20 minutes, be sure that you do not take 25 minutes. Paceyourself so that you will finish all points on time. Do not go too slowly at first and then rush at the end.This can make your talk dull at the beginning and hard to follow at the end.
With proper planning and practice, you will soon be making excellent talks.
424 • Working Papers CENTURY 21 ACCOUNTING, 9TH EDITION
^
Journalizing adjusting entries
nQ~
-a3"
CDnOEL
CD
CQ
DZlQ_
QO(/)=3'
CQ
qD
nq•3o
o
K)Ui
Ien3-
os
reSu
Discount Books, Inc.
Work Sheet
For Year Ended December 31, 20 —
ACCOUNT TITLE
Cash
Petty Cash
Accounts Receivable
Allow, for Uncoil. Accts.
Merchandise Inventory
Supplies — Office
Supplies — Store
Prepaid Insurance
Office Equipment
Ace. Depr. — Office Equipment
Store Equipment
Ace. Depr. — Store Equipment
Accounts Payable
Federal Income Tax Payable
Emp. Income Tax Pay.
Social Security Tax Payable
Medicare Tax Payable
Sales Tax Payable
Unemployment Tax Pay. — Fed.
Unemployment Tax Pay. — State
Health Ins. Premiums Pay.
U.S. Savings Bonds Payable
United Way Donations Pay.
Dividends Payable
Capital Stock
Retained Earnings
TRIAL BALANCE
DEBIT
5
14
84
1
3
12
14
42
1
2
1
8
6
4
0
1
1
4
0
5
1
4
8
0
5
5
8
0
8
5
8
1
0
4
8
25
00
22
20
85
12
00
55
15
CREDIT
4
8
12
1
4
24
34
1
4
4
4
4
1
5
5
0
0
9
2
5
8
5
6
9
1
4
5
0
5
6
0
0
4
1
4
0
8
5
6
6
8
8
4
0
0
0
0
0
2
20
25
00
51
00
00
00
00
00
00
00
00
00
00
00
87
ADJUSTMENTS
DEBIT
(d) -| 84 825
CREDIT
H 1
H j
""3
"11
m 3
( s ) 6
l h ) 3
5
4
2
0
4
4
9
0
4
4
0
1
2
4
0
8
8
0
0
0
8
00
55
11
00
00
00
91
NCOME STATEMENT
DEBIT CREDIT
BALANCE SHEET
DEBIT
5
14
86
1
14
42
1
2
1
6
2
2
0
1
1
4
0
5
6
0
3
0
5
5
8
0
8
3
0
3
0
4
8
25
00
22
45
30
01
00
55
15
CREDIT
1
7
14
12
3
1
4
24
34
5
5
9
4
9
4
4
1
5
5
0
0
9
2
6
0
5
4
6
9
1
4
5
0
5
6
0
0
4
1
4
0
8
8
5
6
6
8
8
4
0
0
0
0
0
2
20
25
00
51
91
00
00
00
00
00
00
00
00
00
00
00
87
a
CD
000"
aQ
CD"
n
to
o
CO
QT30
Discount Books, Inc.
Work Sheet
OO
OI
©GoO
nm
o>o
Zzo
For Year Ended December 31, 20 - -
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
ACCOUNT TITLE
Dividends
Income Summary
Sales
Sales Discount
Sales Returns and Allowances
Purchases
Purchases Discount
Purch. Returns and Allowances
Advertising Expense
Cash Short and Over
Credit Card Fee Expense
Depr. Exp. — Office Equipment
Depr. Exp. — Store Equipment
Insurance Expense
Miscellaneous Expense
Payroll Taxes Expense
Rent Expense
Salary Expense
Supplies Expense — Office
Supplies Expense — Store
Uncollectible Accounts Exp.
Utilities Expense
Fed. Income Tax Expense
Net Income after Fed, Income Tax
T R I A L BALANCE
DEBIT
16
4
174
6
5
4
8
12
97
5
16
527
0
2
1
4
0
1
1
7
0
4
6
0
7
0
1
5
8
0
4
5
4
0
5
4
0
6
0
5
3
1
0
4
8
0
5
0
8
8
0
9
00
00
28
20
00
84
25
00
25
00
84
40
00
40
CREDIT
430
5
527
5
3
5
7
2
4
4
6
1
5
8
9
58
25
74
40
ADJUSTMENTS
DEBIT
» 3
« 6
(c)ll
H 1
« 3
H j
,h, 3
32
4
4
0
4
2
5
9
8
1
2
0
4
4
0
4
2
0
0
0
8
8
0
8
3
00
00
00
55
11
00
91
82
CREDIT
(d) -.
32
8
8
4
2
8
3
25
82
I N C O M E STATEMENT
DEBIT
4
174
6
5
3
6
11
4
8
12
97
1
3
1
5
19
364
73
438
2
1
4
0
1
4
4
0
1
7
0
4
4
2
5
6
9
9
2
2
1
5
8
0
4
1
2
0
5
4
0
5
4
4
0
4
4
8
8
6
5
3
1
0
4
8
0
0
0
0
5
0
8
8
8
0
8
8
0
3
3
00
28
20
00
84
25
00
00
00
00
25
00
84
55
11
00
40
91
63
19
82
CREDIT
1
430
5
438
438
8
5
3
5
2
2
4
2
4
4
6
6
8
1
5
8
3
3
25
58
25
74
82
82
BALANCE SHEET
DEBIT
16
179
179
0
9
9
0
1
1
0
5
5
00
93
93
CREDIT
106
73
179
6
2
9
3
8
1
2
3
5
74
19
93
73
0
31.3
1
Name Date. Class
16-1 WORK TOGETHER (concluded)
1.
GENERAL JOURNAL 18
ACCOUNT TITLE
Chapter 16 Recording Adjusting and Closing Entries for a Corporation • 427
53 < bturgis bupply, Inc. O ^^
* | Worksheet 3 E
^ fi For Year Ended December 31, 20 -- =: ••2 ? . 1 2 3 4 5 6 7 8 H.
^' 2LCQ S*
•if a-<S> Q
sa:
2 5
17
1
ACCOUNT TITLE
Cash
Petty Cash
Accounts Receivable
Allow, for Uncoil. Accts.
Merchandise Inventory
Supplies — Office
Supplies — Store
Prepaid Insurance
TRIAL BALANCE
DEBIT
20
42
315
7
6
18
1
5
4
4
1
1
0
5
0
8
1
4
5
0
8
0
8
8
8
4
0
25
00
25
25
48
88
00
CREDIT
10 8 8 18
ADJUSTMENTS
DEBIT CREDIT
<e> 3
(d) -,
(a) /-
( b > 5
(c)16
2
6
8
5
0
5
4
4
4
0
0
8
7
8
0
00
22
15
11
00
I N C O M E STATEMENT
DEBIT CREDIT
BALANCE SHEET
DEBIT
20
42
313
2
1
5
4
7
3
6
0
5
0
8
7
0
0
0
8
0
8
0
1
6
0
25
00
25
03
33
77
00
CRED
4 3 3
T
8 18
CD »
r 1: -<C XN
=•• c(D O
4 4 5
8* 2-o
7
00A>
no
o
©00Oc
nm
1
O
) )
Sturgis Supply, Inc.
Work Sheet
nQ
TJCD"
o
CD
CQ
Q
Q_
QOto3'
CQ
3_
CD"
6"—l
Q
no-8o
o
4*to
For Year Ended December 31,20 - -
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
ACCOUNT TITLE
Dividends
Income Summary
Sales
Sales Discount
Sales Returns and Allowances
Purchases
Purchases Discount
Purch. Returns and Allowances
Advertising Expense
Cash Short and Over
Credit Card Fee Expense
Depr. Exp. — Office Equipment
Depr. Exp. — Store Equipment
Insurance Expense
Miscellaneous Expense
Payroll Taxes Expense
Rent Expense
Salary Expense
Supplies Expense — Office
Supplies Expense — Store
Uncollectible Accounts Exp.
Utilities Expense
Fed. Income Tax Expense
Net Income after Fed. Income Tax
TRIAL BALANCE
DEBIT
36
1
6
442
15
18
9
18
24
183
9
50
1,355
0
2
4
5
0
4
4
4
0
0
5
0
8
0
4
8
1
0
8
8
8
0
0
8
0n6
0
8
8
8
0
5
7
0
6
0
0
1
02
00
22
95
25
00
25
15
00
69
00
00
25
00
87
CREDIT
998
7
6
1,355
1
1
4
8
4
5
4
3
8
4
8
2
15
25
94
87
ADJUSTMENTS
DEBIT
W !
'" 8
181 8
(c)16
» 6
« g
w 3
:h)24
74
6
4
6
0
8
5
2
1
5
4
5
0
0
4
4
5
6
0
8
0
0
0
7
8
0
3
7
22
00
00
00
15
11
00
72
20
CREDIT
74 5 0 7 20
INCOM E STATEMENT
DEBIT
1
1
6
442
15
18
8
8
16
9
18
24
183
6
5
3
9
74
852
158
1,011
6
2
4
5
0
4
4
6
0
4
4
0
0
8
5
2
5
1
8
9
7
4
4
8
1
0
8
5
0
0
8
8
0
0
4
4
5
8
6
0
4
5
8
8
8
8
0
5
7
0
0
0
0
6
0
0
7
8
0
1
3
2
8
1
22
22
95
25
00
25
15
00
00
00
00
69
00
00
15
11
00
25
72
96
38
34
CRED
998
7
6
1,011
1,011
1
1
4
7
7
4
5
4
5
5
T
8
4
8
1
1
15
25
94
34
34
BALANCE SHEET
DEBIT
36
547
547
0
4
4
0
9
9
0
3
3
00
63
63
CREDIT
388
158
547
5
9
4
4
4
9
5
8
3
25
38
63
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
O
16-1 ON YOUR OWN (concluded)
1.
GENERAL JOURNAL PAGE 24
ACCOUNT TITLE
430 • Working Papers COPYRIGHT © SOUTH-WESTERN CENGAGE LEARNING
Name Date. Class
16-2 WORK TOGETHER, p. 493
Journalizing closing entries
1.
GENERAL JOURNAL PAGE 1:7
ACCOUNT TITLE
Chapter 16 Recording Adjusting and Closing Entries for a Corporation • 431
16-2 ON YOUR OWN, p. 493
Journalizing closing entries
1.
GENERAL JOURNAL 25
ACCOUNT TITLE
432 • Working Papers COPYRIGHT © SOUTH-WESTERN CENGAGE LEARNING
Name Date. Class
16-3 WORK TOGETHER, p. 498
Preparing a post-closing trial balance
1.
ACCOUNT TITLE
^
Chapter 1 6 Recording Adjusting and Closing Entries for a Corporation • 433
16-3 ON YOUR OWN, p. 498
l.
ACCOUNT TITLE
434 • Working Papers COPYRIGHT © SOUTH-WESTERN CENGAGE LEARNING
