Exam 4: Completing the Accounting Cycle

Flagg records adjusting entries at its December 31 year end.At December 31,employees had earned $12,000 of unpaid and unrecorded salaries.The next payday is January 3,at which time $30,000 will be paid.Prepare the journal on January 3 to record payment assuming the adjusting and reversing entries were made on December 31 and January 1.

Accumulated Depreciation and Service Fees Earned would be sorted to which respective columns in completing a work sheet?

Statements that show the financial statements as if proposed transactions had already occurred are called:

All of the following statements regarding a work sheet are true except:

The following adjusted trial balance is for Carla Co.at year-end December 31.The credit balance in Carla West,Capital at the beginning of the year,January 1,was $320,000.The owner,Carla West,invested an additional $100,000 during the current year.The land held for future expansion was also purchased during the current year. Required: Prepare a classified balance sheet as of December 31.(Note: A $21,000 installment on the long-term note payable is due within one year. )

A post-closing trial balance reports:

Shown below are selected data taken from the unadjusted and adjusted trial balances for the Dryer Company for the current year ended December 31.Determine the items A through H below.

Which of the following statements is true?

Another name for a temporary account is a(n):

Which of the following statements is incorrect?

A company's December 31 work sheet for the current period appears below.Based on the information provided,what is net income for the current period?

Which of the following accounts would be included in a post-closing trial balance?

A company had revenues of $75,000 and expenses of $62,000 for the accounting period.The owner withdrew $8,000 in cash during the same period.Which of the following entries could not be a closing entry?

In preparing a work sheet an adjusted trial balance amount is mistakenly sorted to the wrong work sheet column.The Balance Sheet columns will balance on completing the work sheet but with the wrong net income,if the amount sorted in error is:

In the process of completing a work sheet,the accountant determines that the Income Statement debit column totals $83,000,while the Income Statement credit column totals $65,000.To enter net income (or net loss)for the period into the work sheet would require an entry to

All of the following regarding reversing entries are true except:

The purpose of reversing entries is to:

Tunica Company's fiscal year ends on September 30 of the current year.Tunica frequently has accrued revenues at the end of its fiscal year that are recorded for proper financial statement presentation.The company has determined through an evaluation of invoices and services rendered that $32,000 of services has been provided as of September 30,but not yet billed.The total contract to be billed for services when completed will be $60,000.Record the following entries: (a)Accrual of the revenues on September 30. (b)Receipt of payment from customers on October 9 for the services rendered,assuming that Tunica does not prepare reversing entries. (c)Assuming that Tunica prepares reversing entries,reverse the adjusting entry made on September 30. (d)Assuming that Tunica prepares reversing entries,receipt of the payment for the total contract amount on October 9.

Tara Westmont,the proprietor of Tiptoe Shoes,had annual revenues of $185,000,expenses of $103,700,and withdrew $18,000 from the business during the current year.The owner's capital account before closing had a balance of $297,000.The Net Income for the year is:

Which of the following are classified as plant assets?