The balances for the accounts that follow appear in the Adjusted Trial Balance columns of the end-of-period spreadsheet

The balances for the accounts that follow appear in the Adjusted Trial Balance columns of the end-of-period spreadsheet. Indicate whether each account would flow into the income statement, statement of owner’s equity, or balance sheet.

1. Accounts Payable

2. Depreciation Expense

3. Nat Hager, Capital (beginning of period)

4. Office Equipment

5. Rent Revenue

6. Supplies Expense

7. Unearned Rent 

8. Wages Payable

Answer:

1. Balance sheet

2. Income statement

3. Statement of owner’s equity

4. Balance sheet

5. Income statement

6. Income statement

7. Balance sheet

8. Balance sheet

For each of the following errors, considered individually, indicate whether the error would cause the adjusted trial balance totals to be unequal.

For each of the following errors, considered individually, indicate whether the error would cause the adjusted trial balance totals to be unequal. If the error would cause the adjusted trial balance totals to be unequal, indicate whether the debit or credit total is higher and by how much.

a. The adjustment for accrued wages of $5,200 was journalized as a debit to Wages Expense for $5,200 and a credit to Accounts Payable for $5,200.

b. The entry for $1,125 of supplies used during the period was journalized as a debit to Supplies Expense of $1,125 and a credit to Supplies of $1,152.

Answer:

a. The totals are equal even though the credit should have been to Wages Payable instead of Accounts Payable.

b. The totals are unequal. The credit total is higher by $27 ($1,152 – $1,125).

The balances for the accounts that follow appear in the Adjusted Trial Balance columns of the end-of-period spreadsheet.

The balances for the accounts that follow appear in the Adjusted Trial Balance columns of the end-of-period spreadsheet. Indicate whether each account would flow into the income statement, statement of owner’s equity, or balance sheet.

1. Accounts Payable
2. Accounts Receivable
3. Cash
4. Eddy Rosewood, Drawing
5. Fees Earned
6. Supplies
7. Unearned Rent
8. Utilities Expense
9. Wages Expense
10. Wages Payable


Answers:
1. Income statement: 5, 8, 9
2. Statement of owner’s equity: 4
3. Balance sheet: 1, 2, 3, 6, 7, 10