Identity which of the following accounts would be included in a post-closing trial balance.
a. Accounts Receivable c. Goodwill e. Income Tax Expense
b. Salaries Expense d. Land f. Salaries Payable
Accounts receivable, land goodwill, and salary payable.
Step 1: Accounts Receivable
When service is rendered but payment is still due, this amount is known as accounts receivable.
Accounts included in the post-closing trial balance
The following are common categories on a classified balance sheet.
A. Current assets D. Intangible assets
B. Long-term investments E. Current liabilities
C. Plant assets F. Long-term liabilities
For each of the following items, select the letter that identifies the balance sheet category where the item
typically would best appear.
1. Land not currently used in operations 5. Accounts payable
2. Notes payable (due in five years) 6. Store equipment
3. Accounts receivable 7. Wages payable
4. Trademarks 8. Cash
In making adjusting entries at the end of its accounting period, Chao Consulting mistakenly forgot to record:
∙ $3,200 of insurance coverage that had expired (this $3,200 cost had been initially debited to the Prepaid
∙ $2,000 of accrued salaries expense.
As a result of these oversights, the financial statements for the reporting period will [choose one] (1) understate
assets by $3,200; (2) understate expenses by $5,200; (3) understate net income by $2,000; or
(4) overstate liabilities by $2,000.
Cal Consulting follows the practice that prepayments are debited to expense when paid, and unearned
revenues are credited to revenue when cash is received. Given this company’s accounting practices,
which one of the following applies to the preparation of adjusting entries at the end of its first accounting
a. Unearned fees (on which cash was received in advance earlier in the period) are recorded with a debit
to Consulting Fees Earned of $500 and a credit to Unearned Consulting Fees of $500.
b. Unpaid salaries of $400 are recorded with a debit to Prepaid Salaries of $400 and a credit to Salaries
Expense of $400.
c. Office supplies purchased for the period were $1,000. The cost of unused office supplies of $650 is
recorded with a debit to Supplies Expense of $650 and a credit to Office Supplies of $650.
d. Earned but unbilled (and unrecorded) consulting fees for the period were $1,200, which are recorded
with a debit to Unearned Consulting Fees of $1,200 and a credit to Consulting Fees Earned
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