ACC 131 - Chapter 4 Exam Questions and Answers Fully Solved Latest Version 2025-2026
Statements that show the effects of proposed transactions as if the transactions had already
occurred are called: - Answers Pro forma statements.
The Unadjusted Trial Balance columns of a work sheet total $84,000. The Adjustments columns
contain entries for the following:(1.) Office supplies used during the period, $1,200.(2.)
Expiration of prepaid rent, $700.(3.) Accrued salaries expense, $500.(4.) Depreciation expense,
$800.(5.) Accrued service fees receivable, $400.The Adjusted Trial Balance columns total is: -
Answers $85,700.
At the beginning of 2007, Beta Company's balance sheet reported Total Assets of $195,000 and
Total Liabilities of $75,000. During 2007, the company reported total revenues of $226,000 and
expenses of $175,000. Also, owner withdrawals during 2007 totaled $48,000. Assuming no
other changes to owner's capital, the balance in the owner's capital account at the end of 2007
would be: - Answers $123,000.
Closing the temporary accounts at the end of each accounting period: - Answers Serves to
transfer the effects of these accounts to the owner's capital account on the balance sheet.
Prepares the withdrawals account for use in the next period.
Gives the revenue and expense accounts zero balances.
Causes owner's capital to reflect increases from revenues and decreases from expenses and
withdrawals.
The J. Godfrey, Capital account has a credit balance of $17,000 before closing entries are made.
If total revenues for the period are $55,200, total expenses are $39,800, and withdrawals are
$9,000, what is the ending balance in the J. Godfrey, Capital account after all closing entries are
made? - Answers $23,400.
If the Balance Sheet and Statement of Owner's Equity columns of a work sheet fail to balance
when the amount of the net income is added to the Balance Sheet and Statement of Owner's
Equity Credit column, the cause could be: - Answers An expense amount entered in the Balance
Sheet and Statement of Owner's Equity credit column.
In the process of completing a work sheet, you determine that the Income Statement debit
column totals $83,000, while the Income Statement credit column totals $65,000. To enter net
income (or net loss) for the period into the work sheet would require an entry to - Answers the
Balance Sheet & Statement of Owner's Equity debit column and the Income Statement credit
column.
Closing entries are required: - Answers if the temporary accounts are to reflect correct amounts
for each accounting period.
Statements that show the effects of proposed transactions as if the transactions had already
occurred are called: - Answers Pro forma statements.
The Unadjusted Trial Balance columns of a work sheet total $84,000. The Adjustments columns
contain entries for the following:(1.) Office supplies used during the period, $1,200.(2.)
Expiration of prepaid rent, $700.(3.) Accrued salaries expense, $500.(4.) Depreciation expense,
$800.(5.) Accrued service fees receivable, $400.The Adjusted Trial Balance columns total is: -
Answers $85,700.
At the beginning of 2007, Beta Company's balance sheet reported Total Assets of $195,000 and
Total Liabilities of $75,000. During 2007, the company reported total revenues of $226,000 and
expenses of $175,000. Also, owner withdrawals during 2007 totaled $48,000. Assuming no
other changes to owner's capital, the balance in the owner's capital account at the end of 2007
would be: - Answers $123,000.
Closing the temporary accounts at the end of each accounting period: - Answers Serves to
transfer the effects of these accounts to the owner's capital account on the balance sheet.
Prepares the withdrawals account for use in the next period.
Gives the revenue and expense accounts zero balances.
Causes owner's capital to reflect increases from revenues and decreases from expenses and
withdrawals.
The J. Godfrey, Capital account has a credit balance of $17,000 before closing entries are made.
If total revenues for the period are $55,200, total expenses are $39,800, and withdrawals are
$9,000, what is the ending balance in the J. Godfrey, Capital account after all closing entries are
made? - Answers $23,400.
If the Balance Sheet and Statement of Owner's Equity columns of a work sheet fail to balance
when the amount of the net income is added to the Balance Sheet and Statement of Owner's
Equity Credit column, the cause could be: - Answers An expense amount entered in the Balance
Sheet and Statement of Owner's Equity credit column.
In the process of completing a work sheet, you determine that the Income Statement debit
column totals $83,000, while the Income Statement credit column totals $65,000. To enter net
income (or net loss) for the period into the work sheet would require an entry to - Answers the
Balance Sheet & Statement of Owner's Equity debit column and the Income Statement credit
column.
Closing entries are required: - Answers if the temporary accounts are to reflect correct amounts
for each accounting period.
