Exam 4: Completing the Accounting Cycle

A company's ledger accounts and their end-of-period balances before closing entries are posted are shown below.What amount will be posted to Wilson Peters,Capital in the process of closing the Income Summary account? (Assume all accounts have normal balances. )

A classified balance sheet:

Following are selected accounts and their balances for a company after the adjustments made on May 31,the end of its fiscal year.(All accounts have normal balances. ) Prepare all the necessary closing entries for this company.

Which of the following statements is incorrect?

All of the following statements regarding the Income Statement columns on the worksheet are true except:

Which of the following accounts showing a balance on the post-closing trial balance indicate an error?

Assets,liabilities,and equity accounts are not closed;these accounts are called:

Reversing entries:

A partially completed work sheet is shown below.The unadjusted trial balance columns are complete.Complete the adjustments,adjusted trial balance,income statement,and balance sheet and statement of owner's equity columns.

Revenues,expenses,withdrawals,and Income Summary are called _________________ accounts because they are closed at the end of each accounting period.

Which of the following is the usual final step in the accounting cycle?

A company's December 31 work sheet appears below with summary amounts in the Income Statement and Balance Sheet columns.Prepare the four necessary closing entries.

Journal entries recorded at the end of each accounting period to prepare the revenue,expense,and withdrawals accounts for the upcoming period and to update the owner's capital account for the events of the period just finished are referred to as:

Prepare a classified balance sheet for Martin Air Freight based on the adjusted trial balance shown below. *$2,000 of the long-term note payable is due during the next year.

Temporary accounts include all of the following except:

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 ending owner's capital balance after closing is:

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 entry to close the Income Summary account at the end of the year,after revenue and expense accounts have been closed,is:

At the beginning of the year,Sigma Company's balance sheet reported Total Assets of $195,000 and Total Liabilities of $75,000.During the year,the company reported total revenues of $226,000 and expenses of $175,000.Also,owner withdrawals during the year totaled $48,000.Assuming no other changes to owner's capital,the balance in the owner's capital account at the end of the year would be:

K.Canopy,the proprietor of Canopy Services,withdrew $5,700 from the business during the current year.The entry to close the withdrawals account at the end of the year is:

If the Balance Sheet and Statement of Owner's Equity columns of a work sheet fail to balance when the net income is added to the Balance Sheet and Statement of Owner's Equity Credit column,the cause could be: