Exam 2: A Review of the Accounting Cycle

An adjusting entry will not take the format of which one of the following entries?

The work sheet of PSI Company shows Income Tax Expense of $9,000 and Income Tax Payable of $9,000 in the Adjustments columns. What will be the ultimate disposition of these items on the work sheet?

Iowa Cattle Company uses a perpetual inventory system. Iowa purchased cattle from Big D Ranch at a cost of $19,500, payable at time of delivery. The entry to record the delivery would be

The Supplies on Hand account balance at the beginning of the period was $6,600. Supplies totaling $12,825 were purchased during the period and debited to Supplies on Hand. A physical count shows $3,825 of Supplies on Hand at the end of the period. The proper journal entry at the end of the period

The following errors were made in preparing a trial balance: the $1,350 balance of Inventory was omitted; the $450 balance of Prepaid Insurance was listed as a credit; and the $300 balance of Salaries Expense was listed as Utilities Expense. The debit and credit totals of the trial balance would differ by

Which of the following is notan appropriate account title?

Which of the following is consistent with the cash-basis of accounting?

Which of the following regarding accrual versus cash-basis accounting is true?

Carbon Company's accounting records provided the following information (all amounts in thousands of dollars): All assets and liabilities of the firm are reported in the schedule above. Working capital of $92 remained unchanged from 2010 to 2011. Net income in 2011 was $64. No dividends were declared during 2011 and there were no other changes in owners' equity. Total long-term liabilities at the end of 2011 would be

Carlton Company sold equipment for $3,700 that originally cost $22,000. The balance of the Accumulated Depreciation account related to this equipment was $19,000. The entry to record the disposal of this equipment would include a

Which of the following is an item that is reportable in the financial records of an enterprise?

Arid Company paid $1,704 on June 1, 2013, for a two-year insurance policy and recorded the entire amount as Insurance Expense. The December 31, 2013, adjusting entry is

A Company shows $22,000 of insurance expense for the fiscal year. The company records showed a balance in prepaid insurance at the beginning of the year of $5,000 and a balance at the end of the year of $3,000. What amount of cash was paid for insurance during the year?

Comet Corporation's liability account balances at June 30, 2011, included a 10 percent note payable. The note is dated October 1, 2009, and carried an original principal amount of $600,000. The note is payable in three equal annual payments of $200,000 plus interest. The first interest and principal payment was made on October 1, 2010. In Comet's June 30, 2011, balance sheet, what amount should be reported as Interest Payable for this note?

A routine collection on a customer's account was recorded and posted as a debit to Cash and a credit to Sales Revenue. The journal entry to correct this error would be

Crescent Corporation's interest revenue for 2011 was $13,100. Accrued interest receivable on December 31, 2011, was $2,275 and $1,875 on December 31, 2010. The cash received for interest during 2011 was

The last step in the accounting cycle is to

The debit and credit analysis of a transaction normally takes place when the

An example of a nominal account would be

In November and December 2011, Bee Company, a newly organized newspaper publisher, received $72,000 for 1,000 three-year subscriptions at $24 per year, starting with the January 2, 2012, issue of the newspaper. How much should Bee report in its 2011 income statement for subscription revenue?