chapter 4.docx - The income statement for the year 2017 of...

Info icon This preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
The income statement for the year 2017 of Poole Co. contains the following information: Revenues $150,000 Expenses: Salaries and Wages Expense $90,000 Rent Expense 32,000 Advertising Expense 12,000 Supplies Expense 12,000 Utilities Expense 5,000 Insurance Expense 4,000 Total expenses 145,000 Net income (loss) $(5,000) The entry to close the expense accounts includes debit to Income Summary for $145,000. debit to Income Summary for $5,000. debit to Salaries and Wages Expense for $90,000. credit to Income Summary for $5,000. The following data (in thousands) is available for Chang Company. Debit Credit Mortgage payable ¥ 2,829 Prepaid expenses ¥ 2,640 Equipment 34,500 Patents 792 Short-term investments 11,070 Notes payable in 2017 1,443 Cash 8,004 Accumulated depreciation 16,965
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Accounts payable 4,332 Notes payable after 2017 7,104 Share capital-ordinary 30,000 Retained earnings 9,189 Accounts receivable 5,088 Inventories 3,768 Total ¥ 65,862 ¥ 65,862 The subtotal of the last asset classification on the 2017 Statement of Financial Position is ¥34,500. ¥17,535. ¥ 30,570 . ¥27,930. On March 8, Fernetti Company bought office supplies on account from the Flint Company for $550. Fernetti Company incorrectly debited Equipment for $500 and credited Accounts Payable for $500. The entries have been posted to the ledger. the correcting entry should be: Supplies 550 Accounts Payable 500 Equipment 50 Supplies 550 Equipment 550 Supplies 550 Equipment 500 Accounts Payable 50
Image of page 2
Supplies 550 Accounts Payable 550 The following items (in thousands) are taken from the financial statements of Huang Company for the year ending December 31, 2017: Accounts payable ¥ 72,000 Accounts receivable 44,000 Accumulated depreciation–equipment 112,000 Advertising expense 84,000 Cash 60,000 Share capital-ordinary 168,000 Dividends 56,000 Depreciation expense 48,000 Equipment 840,000 Insurance expense 12,000 Note payable, due 6/30/18 280,000 Prepaid insurance (12-month policy) 24,000 Rent expense 68,000 Retained earnings (1/1/17) 240,000 Salaries and wages expense 128,000 Service revenue 532,000 Supplies 16,000 Supplies expense 24,000 The sub-classifications for assets on the company's classified statement of financial position would include all of the following except: Current Assets. Long-term Assets. Property, Plant, and Equipment. Intangible Assets. Which account listed below would be double ruled in the ledger as part of the closing process? Accumulated Depreciation
Image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Cas h Retained Earnings Dividend s The income statement and statement of financial position columns of Reed Company's worksheet reflect the following totals: Income Statement Statement of financial position Dr. Cr. Dr. Cr. Totals $58,000 $45,000 $34,000 $47,000 To enter the net income (or loss) for the period into the above worksheet requires an entry to the income statement debit column and the income statement credit column. statement of financial position debit column and the statement of financial position credit column. income statement debit column and the statement of financial position credit column.
Image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern