Exam 4: Completing the Accounting Cycle

If Income Summary has a credit balance after revenues and expenses have been closed into it, the closing entry for Income Summary will include a

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

The adjustments entered in the adjustments columns of a worksheet are

At April 1, 2014, Rhodes Company reported a balance of $22,000 in the Retained Earnings account. Rhodes Company earned revenues of $50,000 and incurred expenses of $35,000 during April 2014. 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, 2014. (b) What is the balance in Retained Earnings on the April 30, 2014 post-closing trial balance?

All of the following statements about the post-closing trial balance are correct except it

Which of the following would not be classified as a non-current liability?

Which statement about long-term investments is not true?

You have recently started to work for Payne Holmes, manufacturers of cemetery markers and monuments. During your first month at work, you inadvertently recorded as revenue, about $3,000 of prepayments from Tang Company. The financial statements had been released within the company when you discovered your error. The month-end closing had not been completed, however, and you were able to correct the accounts without incident. Required: Prepare a short note to accompany the re-released financial statements explaining the mistake.

On May 25, Carlin Company received a $550 check from Andy Jeter for services to be performed in the future. The bookkeeper for Carlin Company incorrectly debited Cash for $550 and credited Accounts Receivable for $550. The amounts have been posted to the ledger. To correct this entry, the bookkeeper should:

If the total debit column exceeds the total credit column of the income statement columns on a worksheet, then the company has

Vanguard Company had the following adjusted trial balance at December 31, 2014. Instructions (a) Journalize the entries required to close the accounts. (b) Prepare a retained earnings statement for the year ended December 31, 2014.

On September 23, Riley Company received a $350 check from Jack Colaw for services to be performed in the future. The bookkeeper for Riley Company incorrectly debited Cash for $350 and credited Accounts Receivable for $350. The amounts have been posted to the ledger. To correct this entry, the bookkeeper should

Compute the dollar amount of current assets based on the following account balances.

In preparing closing entries

On December 31, 2013 the adjusted trial balance of the High Country Match Service shows the following selected data: Accounts Receivable, $7,000 Service Revenue, $60,000 Salaries and Wages Expense, $10,500 Salaries and Wages Payable, $2,500 Insurance Expense, $4,800 Income Tax Expense, $6,400 Income Taxes Payable, $2,400 Analysis indicates that adjusting entries were made for (a) $7,000 of commission revenue earned but not billed, (b) $2,500 of accrued but unpaid salaries and wages, and (c) $2,400 of income tax expense accrued but not paid. Instructions (a) Prepare the closing entries at December 31, 2013. (b) Prepare the reversing entries on January 1, 2014. (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 service revenue on January 8, (2) payment of the income taxes on January 10, and (3) payment of all the salaries due ($3,000) on January 15. (e) Post the entries in (d) to the temporary accounts. (f) What is the salaries and wages expense for the month of January 2014?

The following items (in thousands) are taken from the financial statements of Huang Company for the year ending December 31, 2014: What is the company's net income for the year ending December 31, 2014?

The worksheet for Norman Company has been completed through the adjusted trial balance. You are ready to extend each amount to the appropriate financial statement column. Indicate for each account, the financial statement column to which the account should be extended by placing a check mark ( $\surd$ ) in the appropriate column.

No permanent account balances are changed in the closing process.

An examination of the accounts of Zin Company for the month of June 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. 1. A collection of $750 from R. Joseph, a customer on account, was debited to Cash $750 and credited to Service Revenue, $750. 2. A payment for Advertising Expense costing $620 was debited to Utilities Expense, $260 and credited to Cash $260. 3. A bill for $710 for Supplies purchased on account was debited to Equipment, $170 and credited to Accounts Payable $170.

The following items (in thousands) are taken from the financial statements of Huang Company for the year ending December 31, 2014: What is the book value of the equipment at December 31, 2014?