Exam 4: Completing the Accounting Cycle

Topeka Bike Company received a $920 check from a customer for the balance due. The transaction was erroneously recorded as a debit to Cash $290 and a credit to Service Revenue $290. The correcting entry is

Long-term investments would appear in the property, plant, and equipment section of the statement of financial position.

Match the items below by entering the appropriate code letter in the space provided.

Which of the following depicts the proper sequence of steps in the accounting cycle?

Current assets under GAAP are listed generally

The financial statement columns of the worksheet for The Coffee Pot at December 31, 2014, are as follows: Instructions (a) Calculate the retained earnings balance that would appear on a Statement of financial position at December 31, 2014. (b) Prepare a classified statement of financial position for The Coffee Pot at December 31, 2014 assuming the note payable is a long-term liability.

Use the following data, taken from the adjusted trial balance, for 70 and 71. -What will be the total of the Statement of Financial Position credit column?

The following items are taken from the adjusted trial balance of Highlander Company for the month ending July 31, 2014: Prepare the current assets section of Highlander's classified statement of financial position.

Current assets are the first category of assets reported on the Statement of Financial Position.

An examination of the accounts of Freeman Company for the month of October revealed the following errors after the transactions were journalized and posted. Prepare correcting entries for each of the above assuming the erroneous entries are not reversed. (a) A check for $700 was issued for goods previously purchased on account. The bookkeeper debited Accounts Receivable and credited Cash for $700. (b) A check for $580 was received as payment on account. The bookkeeper debited Accounts Payable for $850 and credited Accounts Receivable for $850. (c) When making the entry to record the year's depreciation expense, the bookkeeper debited Accumulated Depreciation for $1,500 and credited Cash for $1,500. (d) When accruing interest on a note payable, the bookkeeper debited Interest Receivable for $200 and credited Interest Payable for $200.

The adjustments columns of the worksheet for Leonardo Company are shown below. Instructions (a) Prepare the adjusting entries. (b) Assuming the adjusted trial balance amount for each account is normal, indicate the financial statement column to which each balance should be extended.

The order of the accounts in the post-closing trial balance is the same order as the accounts appearing in the Statement of Financial Position.

The income statement and statement of financial position columns of Reed Company's worksheet reflect the following totals: To enter the net income (or loss) for the period into the above worksheet requires an entry to the

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

Betty Wright, CPA, was asked by the controller of Gore Company to review the accounting records before financial statements are prepared. Betty reviewed the records and found three errors. 1. Cash paid on accounts payable for $910 was recorded as a debit to Accounts Payable $190 and a credit to Cash $190. 2. The purchase of supplies on account for $500 was debited to Equipment $500 and credited to Accounts Payable $500. 3. The company paid dividends $1,500. The bookkeeper debited Accounts Receivable for $150 and credited Cash $150. Instructions Prepare an analysis of each error showing the (a) incorrect entry. (b) correct entry. (c) correcting entry.

The operating cycle of a company is determined by the number of years the company has been operating.

The post-closing trial balance will contain only statement of equity accounts and statement of financial position accounts.

Both correcting entries and adjusting entries always affect at least one statement of financial position account and one income statement account.

The following information (in thousands) is for Zháng Office Supplies: The total amount of assets to be classified as investments is

Closing entries