Visit the following Internet site httpwwwkodakcom Type in Annual report in the

Visit the following internet site httpwwwkodakcom

This preview shows page 65 - 67 out of 98 pages.

Visit the following Internet site: Type in "Annual report" in the search box to locate the most recent annual report and then find the consolidated statement of financial position. Identify the major headings within the balance sheet and calculate the current ratio for the most recent year. Write a memo to your instructor summarizing your findings. Answers to self-test True-false True . The three trial balances are the unadjusted trial balance, the adjusted trial balance, and the post-closing trial balance. The first two trial balances appear on the work sheet. False . If a debit-balance account (such as Prepaid Rent) is credited in the adjustment, the amount in the Adjustments columns is deducted from the amount in the Trial Balance columns to determine the amount for that item in the Adjusted Trial Balance columns. True . The net loss appears in the Income Statement credit column to balance the Income Statement columns. Then the loss appears in the Statement of Retained Earnings debit column because it reduces Retained Earnings. True . All of these accounts are closed, or reduced to zero balances, as a result of the closing process. False . All revenue and expense accounts have zero balances after closing. False . Some manual accounting systems are still in use. Multiple-choice b. The other accounts are very likely to be adjusted. The Land account would be adjusted only if an error has been made involving that account. c. The Adjusted Trial Balance columns should balance before items are spread to the Income Statement, Statement of Retained Earnings, and Balance Sheet columns. Therefore, if the Balance Sheet columns do not balance, the error is likely to exist in the last six columns of the work sheet. d. The net income for the period does not appear in the balance sheet. It does appear in all of the other places listed. a. The Dividends account is closed to the Retained Earnings account rather than to the Income Summary account.
b. Plant, property, and equipment is one of the long-term asset categories. Response (a) should not include equipment. Response (c) should not include notes receivable. Stockholders' equity is not subdivided into current and long-term categories. Comprehensive review problem Lopez Delivery Service Company has the following chart of accounts: Acct . Acct. No. Account Title No. Account Title 100 Cash 310 Retained Earnings 103 Accounts Receivable 320 Dividends 107 Supplies on Hand 400 Service Revenue 108 Prepaid Insurance 507 Salaries Expense 112 Prepaid Rent 511 Utilities Expense 140 Buildings 512 Insurance Expense 141 Accumulated Depreciation—Buildings 515 Rent Expense 150 Trucks 518 Supplies Expense 151 Accumulated Depreciation—Trucks 520 Depreciation Expense— Buildings 200 Accounts Payable 521 Depreciation Expense—Trucks 206 Salaries Payable 568 Miscellaneous Expense 300 Capital Stock 600 Income Summary The post-closing trial balance as of 2010 May 31, was as follows: LOPEZ DELIVERY SERVICE COMPANY Post-Closing Trial Balance 2010 May 31 Acct .

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture