The Trial Balance of the Hope, Faith and Charity Company had various normal account balances listed totaling $131,000 in the debit column. The document also included multiple-choice questions related to adjusting entries, financial statements, and trial balances.

1. Question 2
The Trial Balance of the Hope, Faith and Charity Company had
accounts with the following normal balances: Cash $5,000,
Service Revenue $85,000, Salaries and Wages Payable$4,000,
Salaries and Wages Expense $40,000, Rent Expense $10,000,
Owner’s Capital $42,000, Owner’s Drawings (Withdraws or
Dividends) $15,000, Equipment $61,000. The total in the Trial
Balance debit column should be:
$131,000.
$216,000.
$91,000.
$116,000.

2. Question 3
Webber earned $600 for the last week of September. He will be
paid on October 2. The adjusting entry for Webber’s employer
is:
A. No entry is required.
B. Debit Salary and Wages Expense; Credit Salaries and Wages
Payable.
C. Debit Salaries and Wages Expense; Credit Cash.

3. D. Debit Salaries and Wages Payable; Credit Cash.
Question 4
In the unadjusted trial balance of its worksheet for the year
ended December 31, 2016, Gellatin Corporation reported
equipment of $120,000. The year-end adjusting entries require
an adjustment of $12,000 for depreciation expense for the
equipment. After the adjustment, the following adjusted amount
should be reported.

4. A. A debit of $12,000 for Equipment in the balance sheet
column.
B. A credit of $12,000 for Deprecation Expense-Equipment for
the Income Statement Column.
C. A debit of $120,000 for Equipment in the balance sheet
column.
D. A debit of $12,000 for Accumulated Depreciation-Equipment
in the Balance Sheet Column.

5. Question 5
When Wild Bill Hickock Company purchased supplies worth
$500, it incorrectly recorded a credit to Supplies for $5,000 and
a debit to Cash for $5,000. Before correcting this error:
A. Cash is overstated and Supplies is overstated.
B. Cash is understated and Supplies is understated.
C. Cash is understated and Supplies is overstated.
D. Cash is overstated and Supplies is understated.
Question 8
The Dividends account

6. A. must show transactions every accounting period.
B. is increased with debits and decreased with credits.
C. is not a proper subdivision of retained earnings.
D. appears on the income statement along with the expenses of
the business.
Question 23
Accrued revenues are
A earned and recorded as liabilities before they are received.
B earned but not yet received or recorded.
C received and recorded as liabilities before they are earned.
D earned and already received and recorded.
Problem #1
Prepare a trial balance.

7. The accounts in the ledger of Talbot Delivery Service contain
the following balances on July 31, 2014.
Accounts Receivable
$10,642
Prepaid Insurance
$ 1,968
Accounts Payable
8,396
Maintenance and Repairs Expense
961
Cash
?
Service Revenue
10,610
Equipment
49,360
Dividends
700
Gasoline Expense
758
Common Stock
40,000
Utilities Expense
523
Salaries and Wages Expense
4,428
Notes Payable
26,450
Salaries and Wages Payable
815
Retained Earnings
4,636

8. Instructions
Prepare a proper trial balance and fill in the missing amount for
Cash.
Problem #2
Otis Company accumulates the following adjustment data at
December 31.
1.
Services provided but not recorded total $1,420.
2.
Supplies of $300 have been used.
3.
Utility expenses of $225 are unpaid.
4.
Unearned service revenue of $260 is recognized for services
performed.
5.
Salaries of $800 are unpaid.
6.
Prepaid insurance totaling $380 has expired.
Instructions
For each of the above items indicate the following.
Journalize the adjusting entries.

9. Problem #3
The following accounts were taken from the financial
statements of Orville Company.
________ Interest revenue
________ Utilities payable
________ Accounts payable
________ Supplies
________ Bonds payable
________ Trademarks
________ Common stock
________ Accumulated depreciation—equipment
________ Equipment
________ Salaries and wages expense
________ Investment in real estate
________ Unearned rent revenue
Match each of the accounts to its proper balance sheet
classification, as shown below. If the item would not appear on
a balance sheet, use “NA.”

10. Current assets (CA)
Long-term investments (LTI)
Property, plant, and equipment (PPE)
Intangible assets (IA)
Current liabilities (CL)
Long-term liabilities (LTL)
Stockholders' equity (SE)
Problem #4
Latina Company had the following adjusted trial balance.
Latina Company
Adjusted Trial Balance
For the Month Ended June 30, 2014
Adjusted Trial Balance
Account Titles
Debits
Credits

11. Cash
$ 3,712
Accounts Receivable
3,904
Supplies
480
Accounts Payable
$ 1,556
Unearned Service Revenue
160
Common Stock
4,000
Retained Earnings
1,760
Dividends
600
Service Revenue
4,300
Salaries and Wages Expense
1,344
Miscellaneous Expense
180
Supplies Expense
1,900

12. Salaries and Wages Payable
344
$12,120
$12,120
Instructions
(a)
Prepare a classified balance sheet at June 30, 2014.
Hint: find net income and update retained earnings
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