Exam 4: Completing the Accounting Cycle

The following information is for Sunny Day Real Estate: The total dollar amount of liabilities to be classified as current liabilities is

Identify which of the following accounts would have balances on a post-closing trial balance. (1) Service Revenue (2) Income Summary (3) Notes Payable (4) Interest Expense (5) Cash

The first item listed under current liabilities is usually

Which of the following is a true statement about closing the books of a corporation?

Under IFRS

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 13,000 Supplies 4,000 Supplies expense 6,000 Equipment 210,000 The current assets should be listed on Postal Service's balance sheet in the following order:

Inigo Company prepared the following adjusting entries at year end on December 31, 2018: In an effort to minimize errors in recording transactions, Inigo Company utilizes reversing entries. Prepare reversing entries on January 1, 2019.

The following information is available for Elwes Company for the year ended December 31, 2018: Instructions Use the above information to prepare a classified balance sheet for the year ended December 31, 2018.

The ______________ of a company is the average time that it takes to purchase inventory, sell it on account, and then collect cash from customers.

A post-closing trial balance should be prepared

The information for preparing a trial balance on a worksheet is obtained from

All of the following are property, plant, and equipment except

The amounts appearing on an income statement should agree with the amounts appearing on the post-closing trial balance.

What is the order in which assets are generally listed on a classified balance sheet?

A post-closing trial balance will show

The income statement for the month of June, 2018 of Camera Obscura Enterprises contains the following information: Revenues \7 ,000 Expenses: Salaries and Wages Expense \ 3,000 Rent Expense 1,500 Advertising Expense 800 Supplies Expense 300 Insurance Expense 100 Total expenses 5,700 Net income \1 ,300 The entry to close the revenue account includes a

At April 1, 2018, Spiderland Company reported a balance of $20,000 in the Retained Earnings account. Spiderland Company earned revenues of $50,000 and incurred expenses of $32,000 during April 2018. The company paid dividends of $10,000 during the month. (a) Prepare the entries to close Income Summary and the Dividends acccount at April 30, 2018. (b) What is the balance in Retained Earnings on the April 30, 2018 post-closing trial balance?

The use of reversing entries

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 pavable, 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 Equipment 210,000 What is the company's net income for the year ending December 31, 2018?

Closing entries are made