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Which of the following reflect the balances of prepayment accounts prior to adjustment?

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Which of the following reflect the balances of prepayment accounts prior to adjustment?;Balance sheet accounts are overstated and income statement accounts are overstated.;Balance sheet accounts are understated and income statement accounts are overstated.;Balance sheet accounts are overstated and income statement accounts are understated.;Balance sheet accounts are understated and income statement accounts are understated.;If an adjustment is needed for unearned revenues, the;liability is overstated and the related revenue is understated before adjustment.;liability is understated and the related revenue is overstated before adjustment.;liability and related revenue are understated before adjustment.;liability and related revenue are overstated before adjustment.;If a company fails to make an adjusting entry to record supplies expense, then;owner's equity will be understated.;assets will be understated.;net income will be understated.;expense will be understated.;Which of the following would not result in unearned revenue?;Sale of two-year magazine subscriptions;Sale of season tickets to football games;Rent collected in advance from tenants;Services performed on account;Fugazi City College sold season tickets for the 2014 football season for $240,000. A total of 8 games will be played during September, October and November. In September, three games were played. The adjusting journal entry at September 30;is not required.;No adjusting entries will be made until the end of the season in November.;will include a debit to Unearned Ticket Revenue and a credit to Ticket Revenue for $90,000.;will include a debit to Ticket Revenue and a credit to Unearned Ticket Revenue for $80,000.;The income statement and balance sheet columns of Iron and Wine Company's worksheet reflect the following totals;Income Statement Balance Sheet;Dr. Cr. Dr. Cr.;Totals $72,000$44,000 $60,000 $88,000;The net income (or loss) for the period is;$28,000 loss;$28,000 income.;not determinable.;$44,000 income.;Which of the following is a true statement about closing the books of a proprietorship?;Expenses are closed to the Expense Summary account.;Only revenues are closed to the Income Summary account.;Revenues and expenses are closed to the Income Summary account.;Revenues, expenses, and the owner's drawings account are closed to the Income Summary account.;The income statement for the year 2014 of Fugazi Co. contains the following information;Revenues $70,000;Expenses;Salaries and Wages Expense $45,000;Rent Expense 12,000;Advertising Expense10,000;Supplies Expense 6,000;Utilities Expense 2,500;Insurance Expense 2,000;Total expenses 77,500;Net income (loss) ($7,500);After the revenue and expense accounts have been closed, the balance in Income Summary will be;$0.;a credit balance of $7,500.;a debit balance of $7,500.;a credit balance of $70,000.;The income statement for the year 2014 of Fugazi Co. contains the following information;Revenues$70,000;Expenses;Salaries and Wages Expense$45,000;Rent Expense12,000;Advertising Expense10,000;Supplies Expense6,000;Utilities Expense2,500;Insurance Expense2,000;Total expenses77,500;Net income (loss)($7,500);At January 1, 2014, Fugazi reported owner?s equity of $50,000. Owner drawings for the year totalled $10,000. At December 31, 2014, the company will report owner?s equity of;$17,500.;$32,500.;$42,500.;$40,000.;All of the following statements about the post-closing trial balance are correct except it;shows that the accounting equation is in balance.;proves that all transactions have been recorded.;provides evidence that the journalizing and posting of closing entries have been properly completed.;contains only permanent accounts.

 

Paper#78591 | Written in 18-Jul-2015

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