70.2K

Verified Solution

Link Copied!

6. True or False? The Statement of Retained Earnings shows assets = liabilities + equity. 7. True or False? The Income Statement shows dividends paid. 8. Which of the following is the correct order in the accounting cycle of recording of transactions? A. Prepare financial statements, post to the ledger, record transactions in the journal B. Prepare financial statements, record transactions in the journal, post to the ledger C. Post to the ledger, record transactions in the journal, prepare financial statements D. Record transactions in the journal, post to the ledger, prepare financial statements 9. Dividends are: A. Expenses. B. Recorded as current assets. C. Payments made by the company to stockholders as a return on their investment. D. Special bonuses made to management. 10. True or False? The following accounts all normally have a debit balance: cash, accounts receivable, inventory, expenses, and unearned revenue. 11. True or False? Unearned Revenue is a revenue account shown on the income statement. 12. True or False? During December 2018 John's House Painting Company painted a house. He was not paid until January 2019. Using accrual accounting, the revenue is reported in January 2019. 13. John paid his employees $5,000 in July for work done that month. What journal entry will John record in July? A. Debit cash, credit Wages Revenue. B. Debit cash, credit Wages Payable. C. Debit Wages Revenue, credit Cash. D. Debit Wages Expense, credit Cash. 2010 d

Answer & Explanation Solved by verified expert

See Answer