Exam 4: Completing the Accounting Cycle

The preparation of a Statement of Financial Position is a required step in the accounting cycle.

The following items (in thousands) are taken from the financial statements of Huang Company for the year ending December 31, 2014: The current assets should be listed on Huang's statement of financial position in the following order

The procedures used to prepare the worksheet are the same under both IFRS and GAAP.

Current liabilities

The order of the accounts in the post-closing trial balance is the same order as the accounts appearing in the Statement of Financial Position.

At Westglow Company, the following errors were discovered after the transactions had been journalized and posted. Prepare the necessary correcting entry for each of the following. a. A collection on account of ₤500 was debited to Cash €500 and credited to Service Revenue ₤500. b. The purchase of supplies on account for ₤1,270 was recorded as a debit to Supplies for ₤1,720 and a credit to Accounts Payable for ₤1,720.

Identify which of the following accounts would have balances on a post-closing trial balance. (1) Service Revenue (2) Income Summary (3) Notes Payable (4) Interest Expense (5) Cash

If Income Summary has a credit balance after revenues and expenses have been closed into it, the closing entry for Income Summary will include a

Liabilities are generally classified as either ______________ or ______________ on a classified statement of financial position.

The adjusted trial balance columns of a worksheet are obtained by subtracting the adjustment columns from the trial balance columns.

The account balances (in thousands) appearing on the trial balance (below) were taken from the general ledger of Yang Bakery at October 31. Additional information (in thousands) for the month of October which has not yet been recorded in the accounts is as follows: (a) A physical count of supplies indicates ¥500 on hand at October 31. (b) The amount of insurance that expired in the month of October was ¥200. (c) Depreciation on equipment for October was ¥400. (d) Salaries owed for the month of October was ¥1,100 but will not be paid until November. Instructions Using the above information, complete the worksheet on the following page for Yang Bakery for the month of October. Totals

An error has occurred in the closing entry process if

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

The following information (in thousands) is for Zháng Office Supplies: The total amount of liabilities to be classified as current liabilities is

Which of the following steps in the accounting cycle may be performed most frequently?

The income statement for the month of June, 2014 of Taylor Enterprises contains the following information: The entry to close the revenue account includes a

Harken Company discovered the following errors made in January 2014. 1. A payment of Salaries and Wages Expense of $600 was debited to Equipment and credited to Cash, both for $600. 2. A collection of $2,000 from a client on account was debited to Cash $200 and credited to Service Revenue $200. 3. The purchase of equipment on account for $680 was debited to Equipment $860 and credited to Accounts Payable $860. Instructions Correct the errors by reversing the incorrect entry and preparing the correct entry.

The income statement for the year 2014 of Poole Co. contains the following information: After the revenue and expense accounts have been closed, the balance in Income Summary will be

If a worksheet is used, financial statements can be prepared before adjusting entries are journalized.

Correcting entries are made