Exam 4: Completing the Accounting Cycle

Prepare the necessary correcting entry for each of the following. a. A payment on account of $840 was debited to Accounts Payable $480 and credited to Cash $480. b. The collection of Accounts Receivable of $680 was recorded as a debit to Cash $680 and a credit to Service Revenue $680. ,

The following items were taken from the financial statements Wyatt Company. (All dollars are in thousands.) 2018 net income was 1,000 and dividends paid were $700. Instructions Prepare a classified balance sheet in good form as of December 31, 2018.

The operating cycle of a company is the average time that is required to go from cash to

Identify which of the following are temporary accounts of Sabrina Company. (1) Retained Earnings (2) Dividends (3) Equipment (4) Accumulated Depreciation (5) Depreciation Expense

The process of transferring net income (or loss) for the period to Retained Earnings is accomplished by making ______________ entries.

If a worksheet is used, financial statements can be prepared before adjusting entries are journalized.

The balance of the depreciation expense account will appear in the income statement debit column of a worksheet.

The step in the accounting cycle that is performed on a periodic basis (i.e., monthly, quarterly) is

After closing entries are posted, the balance in the retained earnings account in the ledger will be equal to

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2018: Accounts payable 18,000 Accounts receivable 11,000 Accumulated depreciation - equipment 28,000 Advertising expense 21,000 Cash 15,000 Common stock 42,000 Dividends 14,000 Depreciation expense 12,000 Insurance expense 3,000 Note payable, due 6/30/19 70,000 Prepaid insurance (12-month policy) 6,000 Rent expense 17,000 Retained earnings (1/1/18) 60,000 Salaries and wages expense 32,000 Service revenue 133,000 Supplies 4,000 Supplies expense 6,000 Equinment 210,000 What is the amount that would be reported for stockholders' equity at December 31, 2018?

After a worksheet has been completed, the statement columns contain all data that are required for the preparation of financial statements.

Under IFRS

Merriweather Post Pavillion received a $820 check from a customer for the balance due. The transaction was erroneously recorded as a debit to Cash $280 and a credit to Service Revenue $280. The correcting entry is

On December 31, 2018 the adjusted trial balance of the Yellin Personnel Agency shows the following selected data: Accounts Receivable, $8,000 Service Revenue, $60,000 Interest Expense, $10,500 Interest Payable, $3,500 Utilities Expense, $4,800 Accounts Payable, $2,700 Analysis indicates that adjusting entries were made for (a) $8,000 of employment commission revenue earned but not billed, (b) $3,500 of accrued but unpaid interest, and (c) $2,700 of utilities expense accrued but not paid. Instructions (a) Prepare the closing entries at December 31, 2018. (b) Prepare the reversing entries on January 1, 2019. (c) Enter the adjusted trial balance data in T-accounts. Post the entries in (a) and (b) and rule and balance the accounts. (d) Prepare the entries to record (1) the collection of the accrued commission on January 8, (2) payment of the utility bill on January 10, and (3) payment of all the interest due ($4,000) on January 15. (e) Post the entries in (d) to the temporary accounts. (f) What is the interest expense for the month of January 2019?

What is the term used to describe the owner's equity section of a corporation? (b) Identify the two owners' equity accounts in a corporation and indicate the purpose of each.

The two optional steps in the accounting cycle are preparing

Under IFRS and under GAAP, current assets are listed in IFRS.

The purpose of the post-closing trial balance is to

The balance in the income summary account before it is closed will be equal to

The income statement for the year 2018 of Fugazi Co. contains the following information: Revenues \7 0,000 Expenses: Salaries and Wages Expense \ 45,000 Rent Expense 12,000 Advertising Expense 10,000 Supplies Expense 6,000 Utilities Expense 2,500 Insurance Expense 2,000 Total expenses 77,500 Net income \7 ,500 After the revenue and expense accounts have been closed, the balance in Income Summary will be