Exam 5: Completing the Accounting Cycle Closing and Reversing Entries

On 1 January Y Company Pty Ltd issued 100 000 shares for $2 each.Which of the following is the correct entry to record this transaction?

Which of these is the correct treatment on the worksheet of the nominated item?

The major purpose of a post-closing trial balance is to:

Which statement relating to closing entries is incorrect?

Closing which of these accounts results in a credit to the profit or loss summary account?

Entries made at the beginning of the next accounting period to reverse the effect of various adjustments,are called:

On a worksheet if the opening balance of the salaries expenses account was $7000,a reversing entry for $800 was completed for salaries accrued in the previous year and $600 of salaries were prepaid in the current year the balance of salaries expense transferred to the income statement column would be:

Before calculating the profit for the period,the totals of the income statement debit and credit columns on the worksheet are $60 000 and $80 000 respectively.What is the amount of the profit or loss?

Which of the following statements about closing entries is true?

Because the balance at the end of one accounting period becomes the opening balance at the start of the next period,balance sheet accounts are known as:

Dividends require two accounting entries,one when the dividend is declared and another when it is paid.What is the correct entry to record the declaration of a cash dividend of 20c a share calculated on 100 000 shares?

The income statement and the balance sheet are essentially the same for sole traders and partnerships except for transactions that directly affect:

Which of these is not a purpose of a post-closing trial balance?

Which of the following is the correct closing entry for a profit of $105 300?

Which adjustment would never require a reversing entry?

King Ltd's year-end trial balance includes the following accounts. -Cash -Sales revenue -Accounts payable -Equity -Interest expense -Interest receivable -Motor vehicles How many of these are temporary accounts?

The true statement is:

The retained profits balance of The Fruit Drop Company was $40 000 on the first day of the year.Profit during the year was $20 000.Near year-end a $10 000 dividend was declared that is to be paid in the following year.Year-end retained profits are:

The balance of the salaries expense account is $1200.Which is the correct closing general journal entry? Debit Credit $ $

Which of these is not recorded on a worksheet?