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Worksheet (Use the information from the trial balance in Exam Figure 2. Write the worksheet information on the form in Exam Figure 1.) You’ll need the following adjustment information:
a. P.Woodsley counted the supplies on May 31 and found that the supplies on hand were $342.92.
b. On May 31, Mr.Woodsley checked the insurance records and found that the value of insurance coverage remaining was $400.00.
II. Income statement (Use the form in Exam Figure 3.)
III. Balance sheet (Use the form in Exam Figure 4.)
IV. Journalize adjusting and closing entries. (Use the form in Exam Figure 5.)
V. Post the adjusting and closing entries. (Use the forms in Exam Figure 6.)
VI. Prepare a post closing trial balance. (Use the form in Exam Figure 7.)
Financial Reports
Questions 1–20: Select the one best answer to each question.
1. The heading of the worksheet should appear as
A. Platt Hardware Store
May 31, 20
Worksheet
B. Worksheet
Platt Hardware Store
For the period ending May 31, 20
C. Platt Hardware Store
Worksheet
For the period ending May 31, 20
D. Platt Hardware Store
Worksheet
May 31, 20
2. What is the total liabilities and owner’s equity in the balance sheet you prepared in Exam Figure 4?
A. $5,906.54 C. $17,296.54
B. $11,390.00 D. $18,376.26
3. What is the total of the expenses in the income statement you prepared in Exam Figure 3?
A. $1,079.72 C. $2,791.97
B. $1,838.25 D. $2,917.97
4. If Prepaid Insurance has a debit balance of $500 in the trial balance and the value of insurance coverage remaining is $400, what would be the amount of the adjustment?
A. $100 C. $500
B. $400 D. $900
5. Which of the following best describes a worksheet?
A. It’s a formal report used to summarize the journal.
B. It reports the financial position of a business on a monthly basis.
C. It’s used to gather information to be used in preparing financial statements.
D. It’s an eight-column report that reports only the position of owner’s equity.
6. What adjusting entry did you make in the journal in Exam Figure 5 for the Supplies Expense?
A. Credit Supplies Expense $542.92 and debit Supplies $542.92
B. Debit Supplies Expense $342.92 and credit Supplies $342.92
C. Credit Supplies Expense $200 and debit Supplies $200
D. Debit Supplies Expense $200 and credit Supplies $2007.
7.Which of the following is the correct way to determine the net profit, and what is the net profit?
A. Subtract the total expenses from revenue; the net profit is $2,358.50.
B. Add the total expenses to the revenue; the net profit is $2,358.50.
C. Subtract the total expenses from revenue; the net profit is $1,079.72.
D. Add the total expenses to the revenue; the net profit is $1,0740.90.
8. What is the net profit you reported on the income statement in Exam Figure 3?
A. $2,917.97 C. $1,709.72
B. $1,838.25 D. $1,079.72
9. The assets section of the balance sheet should include
A. Cash C. Cash
Equipment—Store Equipment—Office
Equipment—Office Equipment—Store
Prepaid Insurance P.Woodsley, Capital
Insurance Expense Net Profit
B. Cash D. Cash
Equipment—Store Prepaid Insurance
Equipment—Office Equipment—Store
Supplies Expense Equipment—Office
P.Woodsley, Capital Supplies
10. The owner’s equity section of the balance sheet should appear as
A. Owner’s Equity C. Owner’s Equity
P.Woodsley, Capital Woodsley, Capital
Plus Net Profit Less Drawing
Less P.Woodsley, Drawing Plus Net Profit
Total Owner’s Equity Total Owner’s Equity
B. Owner’s Equity D. Owner’s Equity
P.Woodsley, Capital Less Drawing
Less Drawing Plus Net Profit
Net Profit Total Owner’s Equity
11. Which of the following best describes a closing entry?
A. It’s an entry made in the balance sheet to close out the assets.
B. It’s an entry made in the trial balance to show a final entry.
C. It’s an entry made in the general journal to close a temporary ledger account.
D. It’s an entry made in the general ledger to close a permanent ledger account.12. What entry did you make to close the Fees Earned account?
A. A debit entry of $2,917.97 to the Fees Earned account
B. A credit entry of $2,917.97 to the Fees Earned account
C. A credit entry of $2,917.97 to P.Woodsley, Capital
D. A debit entry of $2,917.97 to P.Woodsley, Capital

13. What entry did you make to close all of the expense accounts?
A. A debit entry of $1,838.25 to the Expense and Revenue Summary
B. A credit entry of $1,838.25 to the Expense and Revenue Summary
C. A debit entry of $1,838.25 to Sales
D. A credit entry of $1,838.25 to Sales
14. The entry closing the Expense and Revenue Summary is a
A. debit of $1,079.72 because there’s net profit.
B. debit of $1,079.72 because there’s a net loss.
C. credit of $1,079.72 because there’s net profit.
D. credit of $1,079.72 because there’s a net loss.
15. You would transfer the net profit for a period to
A. an asset account. C. an owner’s equity account.
B. a liability account. D. to the general ledger.
16. What will be the balance in the Expense and Revenue Summary on June 1, 20—?
A. A credit of $1,079.72 C. A debit of $1,079.72
B. 0 D. A credit of $1,838.25
17. After you made the adjusting entry, what is the balance of the Supplies account?
A. $542.92 debit balance C. $342.92 credit balance
B. $342.92 debit balance D. $200 credit balance
18. What is the balance of the Prepaid Insurance account after you made the adjusting entry?
A. $600 debit balance C. $400 credit balance
B. $600 credit balance D. $400 debit balance
19. What is the balance of the P.Woodsley, Capital account as reported on the post closing
trial balance?
A. $6,766.54 C. $5,256.82
B. $5,906.54 D. $4,607.10
20. The total amount of the liability accounts reported on the post closing trial balance is
A. $11,390.00. C. $20,757.72.
B. $17,296.54. D. $25,436.00.