1. The fourth pair of columns on a 10-column work sheet prepared at the end of the period would be the

Income Statement columns.
Adjusted Trial Balance columns.
Balance Sheet columns.
Adjustments columns.

2. The third pair of columns on a 10-column work sheet prepared at the end of the period would be the

Adjustments columns.
Adjusted Trial Balance columns.
Income Statement columns.
Balance Sheet columns.

3. The owner's equity in a business amounted to $52,000 at the beginning of the year and $100,000 at the end of the year. The owner had made no additional investments and had withdrawn $19,000 during the year. The net income for the year amounted to

$171,000.
$48,000.
$81,000.
$67,000.

4. Changes in owner's equity that result from investments or withdrawals of assets by the owner are included in the

statement of owner's equity.
income statement.
balance sheet.
chart of accounts.

Solutions

Expert Solution

1. The fourth pair of columns on a 10-column work sheet prepared at the end of the period would be the Income Statement columns.

Explanation: An income statement contains the revenues minus the expenses. Expense accounts have debit balances, so they are recorded in the Income Statement Debit column.

2. The third pair of columns on a 10-column work sheet prepared at the end of the period would be the Adjusted Trial Balance columns.

Explanation: An adjusted trial balance is a listing of all the account titles and balances contained in the general ledger after the adjusting entries for an accounting period have been posted to the accounts. The adjusted trial balance is an internal document and is not a financial statement.

3. The net income for the year = $100,000 - ($52,000 - $19,000) = $67,000

4. Changes in owner's equity that result from investments or withdrawals of assets by the owner are included in the Statement of owner's equity.

Explanation: The statement of owner's equity portrays changes in the capital balance of a business over a reporting period. The concept is usually applied to a sole proprietorship, where income earned during the period is added to the beginning capital balance and owner draws are subtracted

ekkarill92 answered 1 year ago

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