Exam 4: Completing the Accounting Cycle

After a worksheet has been completed, the statement columns contain all data that are required for the preparation of financial statements.

The worksheet for Norman Company has been completed through the adjusted trial balance. You are ready to extend each amount to the appropriate financial statement column. Indicate for each account, the financial statement column to which the account should be extended by placing a check mark ( $\surd$ ) in the appropriate column.

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

The heading for a post-closing trial balance has a date line that is similar to the one found on

A worksheet can be thought of as a(n)

The following items (in thousands) are taken from the financial statements of Huang Company for the year ending December 31, 2014: The sub-classifications for assets on the company's classified statement of financial position would include all of the following except

The Supplies account appears in which of the following debit columns of the worksheet?

The format of the data in the Statement of Financial Position columns of the worksheet is the same as the format of the Statement of Financial Position.

Use the following data, taken from the adjusted trial balance, for 70 and 71. -What will be the total of the Statement of Financial Position credit column?

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

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

The post-closing trial balance contains only

You are the controller for WNC Home Media. During the beginning of January 2014, when the company was adjusting and closing the accounting records for the calender year, you were home sick with the flu. You therefore relied on your assistant to complete much of the work. The company reported net income for 2014 of $125,000, down from $140,000 in 2013. In February, after the financial statements have been issued and distributed to the company's investors and creditors, you discover that your assistant overlooked adjustments to insurance expense, depreciation expense and utilties expense resulting in an overstatement of net income by $12,500. You immediately inform the company president of the overstatement and suggest correcting the errors and re-issuing the financial statements.The company president is concerned that investors were not happy about the lower profits reported in 2014. He feels that 2015 is going to be a better year for the company. Therefore he prefers to keep quiet about the financial statement errors in 2014 and adjust the accounting records for the errors in 2015. Required: (a) Who are the stakeholders in this situation? (b) What are the ethical issues in this situation? (c) What would you do as controller in this situation?

A worksheet is a multiple column form that facilitates the

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

Closing entries are made

A post-closing trial balance is prepared

Each of the following accounts is closed to Income Summary except

A worksheet is a mandatory form that must be prepared along with an income statement and statement of financial position.