Exam 4: Completing the Accounting Cycle

Ridge Properties discovered the following errors made in January 2014. Prepare the necessary correcting entry for each of the following. a. A collection on account of €570 from a customer was credited to Accounts Receivable €750 and debited to Cash €750. b. The purchase of supplies on account for €250 was recorded as a debit to Equipment €250 and a credit to Accounts Payable €250.

The use of reversing entries

The following items were taken from the post-closing trial balance of Aloma Macarty Company (All pounds are in thousands): Prepare a classified statement of financial position in good form as of December 31, 2014.

The following lettered items represent a classification scheme for a statement of financial position and the numbered items represent accounts found on balance sheets. In the blank next to each account, write the letter indicating to which category it belongs.

Indicate the proper sequence of the steps in the accounting cycle by placing numbers 1-8 in the blank spaces.

Intangible assets include each of the following except

Transaction and adjustment data for Alcortt Company for the calendar year end is as follows: 1. December 24 (initial salary entry): ₤18,000 of salaries and wages earned between December 1 and December 24 are paid. 2. December 31 (adjusting entry): Salaries and wages earned between December 25 and December 31 are ₤3,000. These will be paid in the January 8 payroll. 3. January 8 (subsequent salary entry): Total salary payroll amounting to ₤11,000 was paid. Instructions Prepare two sets of journal entries as specified below. The first set of journal entries should assume that the company does not use reversing entries, and the second set should assume that reversing entries are utilized by the company. (

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

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

Latitudes Company had the following adjusted trial balance.

Current liabilities

Which one of the following is usually prepared only at the end of a company's annual accounting period?

The Statement of Financial Position columns of the worksheet contain data for what financial statement?

The following data (in thousands) is available for Chang Company. Total assets on the Statement of Financial Position for 2014 are:

A worksheet can be thought of as a(n)

Which of the following classification appears last in the Statement of Financial Position?

The Dividends account is closed to the ______________ account at the end of the accounting period.

The Dividends account is closed to the Income Summary account in order to properly determine net income (or loss) for the period.

On March 8, Fernetti Company bought office supplies on account from the Flint Company for $550. Fernetti Company incorrectly debited Equipment for $500 and credited Accounts Payable for $500. The entries have been posted to the ledger. the correcting entry should be:

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