Exam 4: Completing the Accounting Cycle

A post-closing trial balance should be prepared

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

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 use of reversing entries

A current asset is

The income statement for the year 2014 of Poole Co. contains the following information: After all closing entries have been posted, the revenue account will have a balance of

Intangible assets include each of the following except

The Dividends account is a permanent account whose balance is carried forward to the next accounting period.

Correcting entries will never affect statement of financial position accounts.

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

Correcting entries are made any time an error is discovered even though it may not be at the end of an accounting period.

A company has purchased a trust of land and expects to build a production plant on the land in approximately 5 years. During the 5 years before construction, the land will be idle. Under GAAP, the land should be reported as

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.

Closing entries are

The following information (in thousands) is for Zháng Office Supplies: The total amount of assets to be classified as property, plant, and equipment is

All of the following are equity accounts except

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

The balance of the depreciation expense account will appear in the income statement debit column of a worksheet.

Identify which of the following accounts would appear in a post-closing trial balance. Accumulated Depreciation-Equip. Dividends Depreciation Expense Service Revenue Interest Payable Equipment

The following items (in thousands) are taken from the financial statements of Huang Company for the year ending December 31, 2014: What are total current assets at December 31, 2014?