balance in the income summary account, this means that the revenue has exceeded the expense.
( F) 5. The important role of the worksheet is to aid the
accountant by bringing together all the data needed for preparing financial statements.
Required:
1. Prepare an income statement for the current year ending December 31, exercising care to include each item of expense.
2. Prepare a capital statement for the current year ending December 31.
会计英语Unit 4
Learning Objectives
Unit Four
to prepare adjusted trial balance; to use the worksheet; to close entries; to prepare post-closing trial balance; to understand preparing reversing entries is an
Notes
Unit Four
revenue recognition principle 收入确认原则
The adjusted trial balance is prepared after the adjusting entries have been journalized and posted. It is the one that reflects revised account balance due to the end-ofperiod adjustments. The adjusted trial balance serves as the basis for the preparation of the financial statements. 在调整分录全部登记入日记账并过账后需编制调整后的试算 平衡表。它反映了经期末调整后修正的账户余额，调整后的 试算平衡表将作为编制财务报表的基础。
A.a debit to Unearned Revenue
√B.a credit to Cash
C.a debit to Interest Receivable D.a credit to Salary Payable
Exercises
Unit Four
III . Cases.
The following are the amounts of the assets and liabilities of Lei Feng services, a sole proprietorship, on December 31, the end of the current year, and its revenue and expenses for the year ended on that date. The capital of Wang Xiao, the owner, was $10,655 on January 1, the beginning of the current year, and the owner withdrew $25,000 during the current year.
Vocabulary
apportion outlay accrue adjusted trial balance reflect equality worksheet facilitate duplication closing entries
Unit Four
分派，分摊 费用，花费；支出 自然增加 调整后试算平衡表 反映 相等 工作表 促进 加倍，重复 结账分录
Salary Expense Rent Expense Utilities Expense Supplies Expense Taxes Expense Insurance Expense Advertising Expense Miscellaneous Expense
Unit Four
6,150 12,260 1,200
Exercises
Unit Four
II . Choose the best answer.
1. During 2007, Bustamante Co. incurred salary expense of $240,000. Beginning and ending Salary Payable was $4,000 and $8,000, respectively, In 2007, Busatamante paid salaries of _____.
optional process.
Warming-up
Unit Four
In the previous unit, we described and illustrated the analysis and recording of transactions, posting to the ledger, etc.. In this unit, we complete our discussion of the accounting cycle by making adjustments, preparing a trial balance, preparing financial statements, etc..
A.The matching principle B.The time period concept
√C.The reliability concept
D.The revenue principle
4. On July 31, $3,600 is paid for a one-year insurance policy. On December 31, the adjusting entry for prepaid insurance would include _____.
√A.a debit to Insurance Expense, $3,600
B.a credit to Cash
C.a debit to Interest Receivable
D.a credit to Salary Payable
Exercises
Unit Four
5. An adjusting entry could contain all of the following except _____.
A.$550,000 B.$570,000 C.$580,000 D√.$630,000
Exercises
Unit Four
3. Recording an expense when it is paid instead of when
incurred is a vts are prepared.
( F ) 3. Under the accrual basis, the timing of cash payment or
receipt is vital for recording revenues and expenses.
( T) 4. If at the end of an accounting period there is a debit
Notes
Unit Four
In actual practice, a worksheet is prepared to facilitate the preparation of formal financial statements, it is used to gather information on adjustments and account balances for the financial statements.
A.$248,000 B.$240,000 C√.$236,000 D.$244,000
2. During 2007, Busatamante received $600,000 for service revenue. Bustamante has not received $30,000 for services already performed in 2007. Busatamante also invested $20,000 into the business. Busatamante should report service revenue for 2007 of _____.
( F )1. The adjusted trial balance is the same as the trial
balance, except that it has been modified by adjusting entries.
( T )2. Adjusting entries must be made after the financial
3. Prepare a balance sheet as of December 31 of the current year.
Exercises
Cash Accounts Receivable
Supplies Prepaid Insurance Accounts Payable
Salary Payable Sales
400 4,010 2,100 91,670 25,200 8,000 7,800 6,200 6,000 4,800 3,000 2,425