Exam 4: Completing the Accounting Cycle

The following information is for Acme Auto Supplies: The total dollar amount of liabilities to be classified as current liabilities is

Correcting entries will never affect statement of financial position accounts.

Which of the following is in the proper position?

All of the following are equity accounts except

The temporary account balances ultimately wind up in what account?

If the total debits exceed total credits in the statement of financial position columns of the worksheet, equity

Stine Company paid €830 on account to a creditor. The transaction was erroneously recorded as a debit to Cash of €380 and a credit to Accounts Receivable, €380. The correcting entry is

After the adjusting entries are journalized and posted to the accounts in the general ledger, the balance of each account should agree with the balance shown on the

Identify the two equity accounts in a corporation and indicate the purpose of each.

The following information (in thousands) is available for Wang Company for the year ended December 31, 2014: Instructions Use the above information to prepare a classified statement of financial position for the year ended December 31, 2014.

Harken Company discovered the following errors made in January 2014. 1. A payment of Salaries and Wages Expense of $600 was debited to Equipment and credited to Cash, both for $600. 2. A collection of $2,000 from a client on account was debited to Cash $200 and credited to Service Revenue $200. 3. The purchase of equipment on account for $680 was debited to Equipment $860 and credited to Accounts Payable $860. Instructions Correct the errors by reversing the incorrect entry and preparing the correct entry.

Distinguish between a reversing entry and an adjusting entry. Are reversing entries required?

Which account will appear last under the current assets classification on the Statement of Financial Position?

The adjusted trial balance columns of a worksheet are obtained by subtracting the adjustment columns from the trial balance columns.

A double rule applied to accounts in the ledger during the closing process implies that

A current asset is

On a classified statement of financial position, current assets are customarily listed

The account balances (in thousands) appearing on the trial balance (below) were taken from the general ledger of Yang Bakery at October 31. Additional information (in thousands) for the month of October which has not yet been recorded in the accounts is as follows: (a) A physical count of supplies indicates ¥500 on hand at October 31. (b) The amount of insurance that expired in the month of October was ¥200. (c) Depreciation on equipment for October was ¥400. (d) Salaries owed for the month of October was ¥1,100 but will not be paid until November. Instructions Using the above information, complete the worksheet on the following page for Yang Bakery for the month of October. Totals

Which account listed below would be double ruled in the ledger as part of the closing process?

Which classification of assets will appear last in the Statement of Financial Position?