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Exam 4: Completing the Accounting Cycle

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Question 41

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The balance sheet should be prepared

A) before the income statement and the retained earnings statement
B) before the income statement and after the retained earnings statement
C) after the income statement and the retained earnings statement
D) after the income statement and before the retained earnings statement

E) B) and D)
F) B) and C)

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Question 42

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Indicate whether each of the following would be reported in the financial statements as a a current asset,b property,plant,and equipment,c current liability,d revenue,or e expense:

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1 property, plant, and equipme...

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Question 43

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The classified balance sheet will show which asset subsections?

When preparing the statement of shareholders' equity,the beginning capital balance can always be found

Accrued revenues are ordinarily listed on the balance sheet as current liabilities.

Kirk Enterprises offers rug cleaning services to business clients.Below is the adjustments data for the year ended July 31.Using this information along with the spreadsheet below,record the adjusting entries in proper general journal form. Adjustments: a The equipment is estimated to last for 5 years with no salvage value.The asset will be depreciated evenly over its useful life.Record one month's depreciation. b Accrued wages,$2. c Unused supplies on hand,$8. d Of the unearned revenue,75% has been earned. e Unexpired insurance remaining at the end of the month,$9.

Accrued taxes payable are generally reported on the balance sheet as a current liability.

Which of the following has steps of the accounting cycle in proper sequence some steps may be missing?

Of the following steps of the accounting cycle,which step should be completed last?

Which of the following accounts ordinarily appears in the post-closing trial balance?

$\begin{array}{c}\text { Finley Company }\\\text { End-of-Period Spreadsheet }\\\text { For the Year Ended December } 31\\\begin{array}{|l|r|r|}\hline {\text { Account Title }} & {\text { Debit }} & {\text { Credit }} \\\hline \text { Cash } & 48,000 & \\\hline \text { Accounts Receivable } & 18,000 & \\\hline \text { Supplies } & 6,000 & \\\hline \text { Equipment } & 57,000 & \\\hline \text { Accumulated Depr. } & & 18,000 \\\hline \text { Accounts Payable } & & 25,000 \\\hline \text { Wages Payable } & & 6,000 \\\hline \text { Common Stock } & & 30,000 \\\hline \text { Retained Earnings } & & 3,000 \\\hline \text { Dividends } & 3,000 & \\\hline \text { Fees Earned } & & 155,000 \\\hline \text { Wages Expense } & 63,000 & \\\hline \text { Rent Expense } & 27,000 & \\ \hline \text { Depreciation Expense } & 15,000 & \\\hline \text { Totals } & \underline{237,000} & \underline{237,000} \\\hline \text { Net Income Loss } & & \\\hline\\\hline\end{array}\begin{array}{r|r|r|r|}\hline \text { Debit } & \text { Credit } & \text { Debit } & \text { Credit } \\\hline & & 48,000 & \\\hline & & 18,000 & \\\hline & & 6,000 & \\\hline & & 57,000 & \\\hline & & & 18,000 \\\hline & & & 25,000 \\\hline & & & 6,000 \\\hline & & & 30,000 \\\hline & & & 3,000 \\\hline & & 3,000 & \\\hline & 155,000 & & \\\hline 3,000 & & & \\\hline 27,000 & & & \\\hline 15,000 & & & \\\hline 105,000 & 155,000 & 132,000 & 82,000 \\\hline 50,000 & & & 50,000 \\\hline 155,000 & \underline{155,000} & \underline{132,000} & \underline{132,000} \\\hline\end{array}\end{array}$ -The entry to close the dividends account would be

The balances of the equity accounts from the Adjusted Trial Balance of the work sheet are extended to the Retained Earnings Statement columns.

Kirk Enterprises offers rug cleaning services to business clients.Below is the trial balance for Kirk Enterprises,which was prepared on the end-of-period spreadsheet work sheet for the year ended July 31. Enter the adjustment data in the work sheet for the transactions shown below and place the balances in the Adjusted Trial Balance columns. a The equipment is estimated to last for 5 years with no salvage value.The asset will be depreciated evenly over its useful life.Record one month's depreciation. b Accrued wages,$2. c Unused supplies on hand,$8. d Of the unearned revenue,75% has been earned. e Unexpired insurance remaining at the end of the month,$9.

The end-of-period spreadsheet work sheet for the current year for Jamal Company shows Balance Sheet columns with a debit total of $614,210 and a credit total of $630,430.This is before the amount for net income or net loss has been included.In preparing the income statement from the work sheet,what is the amount of net income or net loss?

After net income is entered on the end-of-period spreadsheet,the Balance Sheet Debit and Credit columns must

On the work sheet,the common stock and dividends account balances are extended to the Balance Sheet columns.

The following accounts were taken from the Adjusted Trial Balance columns of the work sheet: $\begin{array}{l}\begin{array}{lll}\text { Accumulated Depreciation } \\\text { Fees Earned } \\\text { Depreciation Expense } \\\text { Insurance Expense } \\\text { Prepaid Insurance } \\\text { Supplies } \\\text { Supplies Expense }\end{array}\begin{array}{lll}\$ 3,200 \\17,400 \\1,300 \\400 \\4,800 \\900 \\3,800\end{array}\end{array}$ Net income for the period is

$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\text { Stockton Company }$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\text { Adjusted Trial Balance }$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\text { December } 31$ $\begin{array}{|l|r|r|}\hline \text { Cash } & 7,530 & \\\hline \text { Accounts Receivable } & 2,100 & \\\hline \text { Prepaid Expenses } & 700 & \\\hline \text { Equipment } & 13,700 & \\\hline \text { Accumulated Depreciation } & & 1,100 \\\hline \text { Accounts Payable } & & 1,900 \\\hline \text { Notes Payable } & & 4,300 \\\hline \text { Common Stock } & & 1,000 \\\hline \text { Retained Earnings } & & 12,940 \\\hline \text { Dividends } & 790 & \\\hline \text { Fees Earned } & & 9,250 \\\hline \text { Wages Expense } & 2,500 & \\\hline \text { Rent Expense } & 1,960 & \\\hline \text { Utilities Expense } & 775 & \\\hline \text { Depreciation Expense } & 250 & \\\hline \text { Miscellaneous Expense } & 185 & \\\hline \text { Totals } & 30,490 & 30,490 \\\hline\end{array}$ -Determine the net income loss for the period.

Which of the following accounts should be closed to Income Summary at the end of the fiscal year?

Cross-referencing is useful in assuring that the debits and credits are in balance.