1.

A company had the following accounts and balances year-end:

Cash                               $30,000
Accounts receivable      32,000
Accounts payable          20,000
Fees earned                    65,000
Rent expense                  15,000
Insurance expense          4,800
Supplies                            5,000
Sam, Capital                  19,800
Sam, Withdrawals        18,000
If all of the accounts have normal balances, what are the totals for the trial balance? = $104,800

2. At the beginning of 2007, a company's balance sheet reported the following balances:   Total
Assets = $125,000; Total Liabilities = $75,000.  During 2007, the company reported revenues of
$46,000 and expenses of $30,000.  In addition, owner's withdrawals for the year totaled $20,000. 
Assuming no other changes to owner's capital, the balance in the owner's capital account at the
end of 2007 would be: = $46,000

3. A worksheet consists of all of the following except: = Transaction entries

4. A trial balance has which of the following features? = Totals for all accounts listed in the
ledger
5. The asset account, Supplies, will appear in which debit columns of the worksheet? = Statement
of financial position, Adjusted trial balance, Trial balance
6. A worksheet should be viewed as: = A tool to assist accountants in making end-of-period
adjustments and in preparing financial statements.
7. Can financial statements be prepared directly from the adjusted trial balance? = Yes, adjusting
entries have been recorded in the general journal and posted to the ledger accounts.

8. On December 1, Phillips Tool and Die Company paid six months' insurance in advance totaling
$9,000. An adjusted trial balance prepared on December 31 would include a balance in the
Prepaid Insurance account of: = $7,500

9. A 10-column spreadsheet used to draft a company's unadjusted trial balance, adjusting entries,
adjusted trial balance, and financial statements, and which is an optional tool in the accounting
process is a(n): = Work sheet.
10. The Accounts Receivable account has a $20,000 debit balance in the unadjusted trial balance. 
There is a $1,000 debit adjustment to Accounts Receivable. The adjusted trial balance will show
Accounts Receivable as a: = $21,000 debit balance

11. If the total of the debit column equals the total of the credit column in the trial balance, it
indicates that = the accounting equation has remained in balance
12. The adjusted trial balance for prepaid insurance is a $724 debit.  Insurance expense for the period
was $1,136.  What was the unadjusted trial balance for prepaid insurance? = $1,860 debit
13. On June 6, the bookkeeper for Creative Band, Inc makes this entry:
Dr. Equipment      7,400
Cr. Cash                  4,200
Cr. Accounts Payable            3,200
This transaction: = Increases liabilities.

14. Generally, all of the following financial statements can be prepared with information from the
adjusted trial balance except = statement of cash flows
15. The accounts in the ledger of Mickeys Park Co. are listed in alphabetical order. All accounts have
normal balances.
Accounts Payable            500      Fees Earned              2,000
Accounts Receivable      800      Insurance Expense      300
Investment                    1,000      Land                            2,000
Cash                                1,600      Wages Expense            400
Dividends                         200      Capital Stock              1,800
Prepare a trial balance. The total of the debits is = $5,300

16. Denton Company showed the following balances at the end of its first year:
Cash                               $ 7,000
Prepaid insurance             700
Accounts receivable       3,500
Accounts payable           2,800
Notes payable                 4,200
Denton, Capital              1,400
Denton, Drawing              700
Revenues                      21,000
Expenses                       17,500
What did Denton Company show as total credits on its trial balance? = $29,400

17. The ending balance in Retained Earnings is found on: = both the statement of retained
earnings and the balance sheet

18. The column of the income statement shows the debits are equal to $56,899 and credits are
$60,333.  What do this information mean to the accountant? = Net income of $3,434

19. One tool that may be used by accountants as part of the adjusting process is the: = worksheet