Accounting - Unit 2 2021 with solution graded A+

Japeth's statement of changes in owner's equity shows net income of $25,000, owner's drawings of $5,000 and an ending balance of $65,000. What was Japeth's beginning balance? Answer- $45,000 When preparing a trial balance worksheet, what step would Tom complete next if he has already prepared a trial balance, adjusted entries and prepared an adjusted trial balance? Answer- Prepare an income statement If Rose is preparing an income statement with $7,000 in owner's equity, what should she record as her total revenue? Expenses = $10,000 Net Income = $112,000 Answer- $122,000 Accounts that have their balances closed at the end of an accounting period and reopened at the beginning of the next period are called __________. Answer- Temporary Accounts Which image below correctly shows a trial balance worksheet? Answer- - Cash - Accounts Receivable - Accounts Payable - Notes Payable - Owner's Equity - Owner's Withdrawal - Sales Revenue - Rent Revenue - Salaris Expense - Advertising Expense Which of the principles below does Val follow when she reviews her records to make sure that recorded accounting events correspond to the actual costs? Answer- Measurement principle If Andrea recorded $56,000 as liabilities and $43,000 as equity in her balance sheet, which of the following shows the correct total of Andrea's assets? Answer- $99,000 Which of the following is NOT true about closing entries? Answer- Temporary account balances are carried over to the next accounting period. The employees of Catherine's business earned $22,800 in wages during December, but the next payday is not until January 2nd. When Catherine makes an adjustment on her December 31st trial balance worksheet to account for these wages, what two types of accounts will be affected? Answer- An expense account and a payable account Jennifer has a truck that she uses to deliver goods sold by her business. At the end of the year, Jennifer will record $6,000 for depreciation of the truck. What two types of accounts will be affected by this adjusting entry? Answer- An asset account and an expense account What is the total of the owner's equity if the balance sheet shows liabilities of $38,000 and assets of $74,000? Answer- $36,000 What type of adjustment will building management make to their trial balance worksheet for the $3,000 they paid their landscaper up front for work that totaled $12,000? Answer- Prepaid expenses What are the total liabilities of Big Galaxy Toys if the total assets are $248,000 and the equity is $67,000? Answer- $181,000 Which of the following correctly shows a balance sheet? Answer- Example Company Balance Sheet December 31th, 2018 Assets - Cash - Accounts Receivable - Total Assets Liabilities - Accounts Payable - Notes Payable - Total Liabilities Equity - Beginning Assets - Beginning Revenues - Beginning Balance - Liabilities - Capital Added/Invested during the period - Net Income/Net Loss - Drawings - Expenses - Ending Balance/Owner's Capital Which of the above accounts would be included in the statement of changes in Owner's Equity? Answer- - Beginning Balance - Capital Added/Invested During the period - Net Income/Net Loss - Drawings - Ending Balance/owner's capital Which description below corresponds to the Time Period Assumption Principle? Answer- Businessess are required to report financial statements on a consecutive and regular basis. Consider the following information: Cash: $6,000 Beginning Balance: $200,000 Capital Added: $15,000 Revenues: $10,000 Expenses: $5,000 Net Income: $56,000 Owner's Withdrawals: $60,000 What is the ending balance on the Statement of Changes in Owner's Equity for this data? Answer- $211,000 Which of the income statement headers below is correct? Answer- Sylvie's Sweet Shop Income Statement For a period ending November 30, 2018