Accounting Chapter 5 Homework

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Chapter 5 Homework

Ja’Niya Ladson

Voorhees College

ACT 231 VC

Professor Melicent Jaridau

January 12, 2022

EB2.

LO 5.1 For each of the following accounts, identify whether it is nominal/temporary or real/permanent, and whether it is reported on the Balance Sheet or the Income Statement.

A. Salaries Payable

B. Sales Revenue

C. Salaries Expense

D. Prepaid Insurance

EB3.

LO 5.1 For each of the following accounts, identify whether it would be closed at year-end (yes or no) and on which financial statement the account would be reported (Balance Sheet, Income Statement, or Retained Earnings Statement).

A. Retained Earnings

B. Prepaid Rent

C. Rent Expense

D. Rent Revenue

E. Salaries Expense

F. Salaries Payable

G. Supplies Expense

H. Unearned Rent Revenue

EB8.

LO 5.1 Use the following T-accounts to prepare the four journal entries required to close the books:

T-Accounts. Cash debit balance 25,222. Rent Revenue credit balance 112,000. Advertising expense debit balance 6,000. Insurance Expense debit balance 12,000. Salaries Expense debit balance 75,000. Dividends debit balance 16,000. Retained Earnings credit balance 22,222.

EB14.

LO 5.3 Using the following Balance Sheet summary information, calculate for the two companies presented:

A. working capital

B. current ratio

Then:

C. evaluate which company’s liquidity position appears stronger, and why.

Company L and Company M, respectively: Current assets 425,000, 215,500. Current liabilities 335,000, 132,700.