Exam 4: Completing the Accounting Cycle

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?

Indicate the worksheet column (income statement Dr., statement of financial position Cr., etc.) to which each of the following accounts would be extended.

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

The adjustments on a worksheet can be posted directly to the accounts in the ledger from the worksheet.

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

It is not necessary to prepare formal financial statements if a worksheet has been prepared because financial position and net income are shown on the worksheet.

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

IFRS permits the noncurrent classifications to be reported before the current classifications on the statement of financial position

Identify which of the following are temporary accounts of San Juan Company. (1) Retained Earnings (2) Dividends (3) Equipment (4) Accumulated Depreciation-Equipment (5) Depreciation Expense

The final closing entry to be journalized is typically the entry that closes the

The post-closing trial balance only contains Statement of Financial Position account balances.

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 liabilities at December 31, 2014?

Which of the following accounts does not appear in the Statement of Financial Position?

The income statement for the year 2014 of Poole Co. contains the following information: At January 1, 2014, Poole reported Retained Earnings of $50,000. Dividends for the year totalled $10,000. At December 31, 2014, the company will report Retained Earnings of

An incorrect debit to Accounts Receivable instead of the correct account Notes Receivable does not require a correcting entry because total assets will not be misstated.

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

The four major classifications of assets in a classified statement of financial position are: ________________, ________________, ________________ and ________________.

Closing the Dividends account to Retained Earnings is not necessary if net income is greater than dividends paid during the period.

The following items (in thousands) are taken from the financial statements of Huang Company for the year ending December 31, 2014: What is the balance that would be reported for equity at December 31, 2014?