Use the following image(IF NEEDED) to answer the question below.
QUESTION:
The preparation of the trial balance occurs after to the preparation of the financial statements.
o True
o False
Ans. :
This statement is false that the preparation of the trial balance occurs after the preparation of the financial statements. Instead financial statements i.e. Income statement and balance sheet uses the accounts balances shown in trial balance. Trial balance is prepared after journal and ledgers using the balances shown in ledgers and check the accuracy of account balances by matching the credit and debit side of trial balance.
Use the following image(IF NEEDED) to answer the question below. QUESTION: The preparation of the trial...
Use the following image(IF NEEDED) to answer the question below. QUESTION: Cronah has the following normal account balances: contributed capital, $1,000,000; accounts payable, $14,000; property, plant and equipment, $100,000; revenue, 500,000; wage expense, $10,000; inventory, $130,000; cash, $850,000; accounts receivable, $250,000, retained earnings, $326,000; and cost of goods sold, $200,000. (T of F) Total assets are $1,330,000 o True o False g Goal: Prepare trial balance, generate financial statements using ACCRUAL-basis accounting. 1. Use the template below to indicate how...
Use the following image to answer the question QUESTION: A cash payment for the purchase of inventory requires a credit to inventory. o True o False 1. Use the template below to indicate how the following transactions affect the accrual-basis accounting equation: a. Kissimmee, Inc. (a retail store) begins business on January 1, 2015 with a $100,000 cash contribution from the owners. b. On January 1, 2015, Kissimmee hires five employees to manage and operate the business. c. On January...
Use the following image to answer the question QUESTION: The reduction of an obligation to a creditor requires a debit to the account for the obligation. o True o False 1. Use the template below to indicate how the following transactions affect the accrual basis accounting equation: a. Kissimmee, Inc. (a retail store) begins business on January 1, 2015 with a $100,000 cash contribution from the owners. b. On January 1, 2015, Kissimmee hires live employees to manage and operate...
Use the following image to answer the question QUESTION: The cost of employee wages reduces shareholder’s equity. o True o False 1. Use the template below to indicate how the following transactions affect the accrual-basis accounting equation: a. Kissimmee, Inc. (a retail store) begins business on January 1, 2015 with a $100,000 cash contribution from the owners. b. On January 1, 2015, Kissimmee hires five employees to manage and operate the business. c. On January 1, 2015, Kissimmee prepays the...
Use the following image to answer the question QUESTION: The property, plant and equipment account normally maintains a credit balance. o True o False 1. Use the template below to indicate how the following transactions affect the accrual basis accounting equation: a. Kissimmee, Inc. (a retail store) begins business on January 1, 2015 with a $100,000 cash contribution from the owners. b. On January 1, 2015, Kissimmee hires live employees to manage and operate the business. c. On January 1,...
Use the following image to answer the question QUESTION: For any journal entry, the sum of the dollar amounts for debits may differ from the sum of the dollar amounts for credits. o True o False 1. Use the template below to indicate how the following transactions affect the accrual basis accounting equation: a. Kissimmee, Inc. (a retail store) begins business on January 1, 2015 with a $100,000 cash contribution from the owners. b. On January 1, 2015, Kissimmee hires...
Use the following image to answer the question QUESTION: A journal entry may possibly contain a debit to one asset, and a credit to another asset. o True o False 1. Use the template below to indicate how the following transactions affect the accrual basis accounting equation: a. Kissimmee, Inc. (a retail store) begins business on January 1, 2015 with a $100,000 cash contribution from the owners. b. On January 1, 2015, Kissimmee hires live employees to manage and operate...
Use the following image to answer the question QUESTION: Debits reduce the balances for asset accounts. o True o False 1. Use the template below to indicate how the following transactions affect the accrual basis accounting equation: a. Kissimmee, Inc. (a retail store) begins business on January 1, 2015 with a $100,000 cash contribution from the owners. b. On January 1, 2015, Kissimmee hires live employees to manage and operate the business. c. On January 1, 2015, Kissimmee prepays the...
Q: Cash payment for the purchase of inventory requires credit to inventory. A: True or False (n) Note payable Interest expense Cash $10,000 $ 100 $10,100 (0) $ 200 Cash Accounts receivable $ 200 $ 1,500 (p) Wage expense Cash $ 1,500 Totals $119,650 $119,650 Key ideas: i. A journal is a chronological recording of transactions using debits and credits (debit simply means left, and credit simply means right) ii. Journalizing a transaction is just a fancy way of saying...
Q: The sale of inventory increases the inventory balance using accrual-basis accounting. A: True or False ?? Goal: Transaction analysis using ACCRUAL-basis accounting. 1. Use the template below to indicate how the following transactions affect the accrual-basis accounting equation: a. Kissimmee, Inc. (a retail store) begins business on January 1, 2015 with a $100,000 cash contribution from the owners. b. On January 1, 2015, Kissimmee hires five employees to manage and operate the business. c. On January 1, 2015, Kissimmee...