Exam 4: Completing the Accounting Cycle

An optional columnar working paper used to prepare a company's unadjusted trial balance,adjusting entries,adjusted trial balance,and financial statements is a(n):

A number of accounts are listed below.Use the table to classify each account by indicating whether it is a temporary or permanent account,whether it is included in the Income Statement or Balance sheet,and if it is closed at the end of the accounting period,and,if so,whether it is closed with a debit or credit.The first one is done as an example.

Reversing entries:

All of the following regarding the current ratio are true except:

At the beginning of the year,a company's balance sheet reported the following balances: Total Assets = $225,000;Total Liabilities = $125,000;and Owner's Capital = $100,000.During the year,the company reported revenues of $46,000 and expenses of $30,000.In addition,owner's withdrawals for the year totaled $20,000.Assuming no other changes to owner's capital,the balance in the owner's capital account at the end of the year would be:

In the table below,indicate with an "X" in the proper column whether the account is a temporary (nominal)account or a permanent (real)account.

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?

The Unadjusted Trial Balance columns of a company's work sheet shows the Store Supplies account with a balance of $750.The Adjustments columns shows a credit of $425 for supplies used during the period.The amount shown as Store Supplies in the Balance Sheet columns of the work sheet is:

Jen Rogers withdrew a total of $35,000 from her business during the current year.The entry needed to close the withdrawals account is:

Use the information in the adjusted trial balance presented below to calculate the current ratio for Taron Company:

Which of the following statements about a company's operating cycle is not true:

Based on the following information from Schrute Company's balance sheet,calculate the current ratio.

Employees of Potteryworld Co.have earned but have not been paid $3,500 in salaries for the last week of the current calendar year. (a)Prepare the necessary adjusting journal entry for Potteryworld at December 31 of the current year. (b)Assuming that Potteryworld makes reversing entries,prepare the necessary reversing entry,including the appropriate date.

It is obvious that an error occurred in the preparation and/or posting of closing entries if:

The adjusted trial balance of the Waterstone Company follows: Prepare the closing entries for Waterstone Company.

Which of the following are classified as current assets?

A classified balance sheet differs from an unclassified balance sheet in that

For the year ended December 31,a company had revenues of $187,000 and expenses of $109,000.The owner withdrew $37,000 during the year.Which of the following entries could not be a closing entry?

The following information is available for Zephyr Company before closing the accounts.After all of the closing entries are made,what will be the balance in the Zephyr,Capital account?

The following information is available for the Harris Vacation Rental Agency.After these closing entries what will be the balance in the Sue Harris,Capital account?