Q19Q 鈥淎 worksheet is a permanent ac... [FREE SOLUTION]

Chapter 3: Q19Q (page 128)

鈥淎 worksheet is a permanent accounting record, and its use is required in the accounting cycle. 鈥淒o you agree? Explain.

Short Answer

Expert verified

Disagree because it鈥檚 a worksheet and it assists in making adjusting entries and for closing the books at the end of the accounting period. The accounting statements are considered the permanent records, but this is not the case with the worksheet.

Step by step solution

Meaning of worksheet

Worksheet is a document used in the accounting department for inspecting and modelling the balances of accounts. It is beneficial for assuring that the accounting entries are obtained accurately.

Explanation for the statement

The statement is incorrect because a worksheet is not a permanent accounting record and its use is not needed in the accounting cycle. The worksheet is not a formal method for collecting and resolving information required for accounting statements. It is used alternatively as its aids in preparing financial statements.

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SANTO DESIGN ADJUSTED TRIAL BALANCE DECEMBER 31, 2017
	Dr.	Cr.
Cash	\( 11,350
Accounts Receivable	21,500
Supplies	5,000
Prepaid Insurance	2,500
Equipment	60,000
Accumulated Depreciation鈥擡quipment		\) 35,000
Accounts Payable		5,000
Interest Payable		150
Notes Payable		5,000
Unearned Service Revenue		5,600
Salaries and Wages Payable		1,300
Common Stock		10,000
Retained Earnings		3,500
Service Revenue		61,500
Salaries and Wages Expense	11,300
Insurance Expense	850
Interest Expense	150
Depreciation Expense	7,000
Supplies Expense	3,400
Rent Expense	4,000
	\(127,050	\)127,050

CRESTWOOD GOLF CLUB, INC. TRIAL BALANCE DECEMBER 31
	Debit	Credit
Cash	\(15,000
Accounts receivables	13,000
Allowance for doubtful accounts		\)1,100
Prepaid insurance	9,000
Land	350,000
Building	120,000
Accumulated depreciation 鈥� building		38,400
Equipment	150,000
Accumulated depreciation 鈥� equipment		70,000
Common stock		400,000
Retained earnings		82,000
Dues revenue		200,000
Green fees revenue		5,900
Rent revenue		17,600
Utilities expenses	54,000
Salaries and wages expenses	80,000
Maintenance and repair expenses	24,000
	\(815,000	\)815,000

ANDERSON COOPER CO. ADJUSTED TRIAL BALANCE DECEMBER 31, 2017
	Dr.	Cr
Cash	\(19,472
Accounts Receivable	6,920
Prepaid Rent	2,280
Equipment	18,050
Accumulated Depreciation鈥擡quipment		\) 4,895
Notes Payable		5,700
Accounts Payable		5,472
Common Stock		20,000
Retained Earnings		11,310
Dividend	3,000
Service Revenue		11,590
Salaries and Wages Expense	6,840
Rent Expense	2,260
Depreciation Expense	145
Interest Expense	83
Interest Payable		83
	\(59,050	\)59,050

91影视

鈥淎 worksheet is a permanent accounting record, and its use is required in the accounting cycle. 鈥淒o you agree? Explain.

Short Answer

Step by step solution

Meaning of worksheet

Explanation for the statement

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