Exam 4: Completing the Accounting Cycle

Use the following data, taken from the adjusted trial balance, for 70 and 71. -Which of the following accounts is least likely to have its balance change on the worksheet?

Income Summary has a credit balance of $12,000 in J. Wenger Co. after closing revenues and expenses. The entry to close Income Summary is

The financial statement columns of the worksheet for The Coffee Pot at December 31, 2014, are as follows: Instructions (a) Calculate the retained earnings balance that would appear on a Statement of financial position at December 31, 2014. (b) Prepare a classified statement of financial position for The Coffee Pot at December 31, 2014 assuming the note payable is a long-term liability.

Which of the following is in the proper order?

Current assets are listed in the reverse order of liquidity.

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

Closing entries are journalized and posted

The most important information needed to determine if companies can pay their current obligations is the

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?

Liabilities are generally classified on a statement of financial position as

A worksheet is an optional working tool used by accountants to facilitate the preparation of financial statements. Consider the steps followed in preparing a worksheet. How does the use of a worksheet assist the accountant. Could financial statements be prepared without a worksheet? Evaluate how the process would differ. Consider factors such as timeliness, accuracy, and efficiency in your evaluation.

The financial statement columns of the worksheet for Dr. Gumbo's Catering Company as of December 31, 2014 are as follows: Instructions Prepare a classified statement of financial position for Dr. Gumbo's Catering Company.

Which one of the following statements concerning the accounting cycle is incorrect?

The ledger of Hunter Company contains the following balances: Retained Earnings $60,000; Dividends $4,000; Service Revenue $95,000; Salaries and Wages Expense $59,000; and Rent Expense $18,000. Prepare the closing entries at December 31.

Latitudes Company had the following adjusted trial balance.

The last 2 columns on a worksheet prepared under IFRS contains data for the Retained Earnings Statements.

If errors occur in the recording process, they

The balances that appear on the post-closing trial balance will match the

Closing entries are journalized after adjusting entries have been journalized.

Which of the following liabilities are not related to the operating cycle?