Accounting Ch. 3 Questions and Graded Answers.
$1,000 of cash was received in advance by preforming services. By the end of the period, $300
had not yet been earned. (The unearned revenue was increased at the time of the initial cash
receipt.) demonstrate the required adjusting journal entry - Service Revenue would be
credited for $700
Unearned Revenue would be debited for $700
illustrate your understanding of how to use the adjusted trial balance to prepare a statement of
retained earnings by completing the following sentence:
In order to prepare the statement of retained earnings, the balance to the ______________
account balance, as well as any debit balance in the ________ account is transferred from the
adjusted trial balance is used along with the reported net income (loss) from the income
statement - In order to prepare the statement of retained earnings, the balance to the
retained earnings account balance, as well as any debit balance in the dividends account is
transferred from the adjusted trial balance is used along with the reported net income (loss) from
the income statement
For the current year, a business has earned (but not recorded or received) $200 of interest from
investments Demonstrate the required adjusting entry by completing the following sentence.
The required adjusting entry would be to debit the ______ account, and _________ the
__________ account. - The required adjusting entry would be to debit the interest
receivable account, and credit the interest revenue account.
For the current year, a business has earned (but not recorded or received) $200 of interest from
investments. Demonstrate the required adjusting entry by completing the following sentence.
$1,000 of cash was received in advance by preforming services. By the end of the period, $300
had not yet been earned. (The unearned revenue was increased at the time of the initial cash
receipt.) demonstrate the required adjusting journal entry - Service Revenue would be
credited for $700
Unearned Revenue would be debited for $700
illustrate your understanding of how to use the adjusted trial balance to prepare a statement of
retained earnings by completing the following sentence:
In order to prepare the statement of retained earnings, the balance to the ______________
account balance, as well as any debit balance in the ________ account is transferred from the
adjusted trial balance is used along with the reported net income (loss) from the income
statement - In order to prepare the statement of retained earnings, the balance to the
retained earnings account balance, as well as any debit balance in the dividends account is
transferred from the adjusted trial balance is used along with the reported net income (loss) from
the income statement
For the current year, a business has earned (but not recorded or received) $200 of interest from
investments Demonstrate the required adjusting entry by completing the following sentence.
The required adjusting entry would be to debit the ______ account, and _________ the
__________ account. - The required adjusting entry would be to debit the interest
receivable account, and credit the interest revenue account.
For the current year, a business has earned (but not recorded or received) $200 of interest from
investments. Demonstrate the required adjusting entry by completing the following sentence.