Exam 4: Completing the Accounting Cycle

Assets, liabilities, and stockholders' equity accounts are real accounts and do not get closed at the end of the period.

Unearned revenues that will be earned in a relatively short period of time are listed on the balance sheet as current assets.

Shores Sports rents canoes and kayaks. Below is the adjusted trial balance at December 31. The entry required to close the revenue accounts at the end of the period includes a

The income statement should be prepared

On the work sheet, the common stock and dividends account balances are extended to the Balance Sheet columns.

Real accounts are not permanent accounts.

Accounts reported on the balance sheet that are carried forward from year to year are known as permanent accounts.

Match each journal entry that follows as one of the types of journal entries a-c) below. -Income Summary 597 Rent Expense 200 Supplies Expense 180 Utilities Expense 110 Miscellaneous Exp. 107

Cross-referencing is useful in assuring that the debits and credits are in balance.

Debts listed as current liabilities are those that

Beachside Realty rents condominiums and furnishings. Below is the adjusted trial balance at December 31. Debit Credit Cash 1,500 Accounts Receivable 2,000 Interest Receivable 100 Prepaid Insurance 1,600 Notes Receivable long-term) 2,800 Equipment 15,000 Accumulated Depreciation 3,000 A.ccounts Payable 2,400 Accrued Expenses Payable 3,920 Income Taxes Payable 2,700 Unearned Rent Fees 500 Common Stock 5,000 Retained Earnings 2,700 Dividends 2,000 Rent Fees Earned 37,000 Furniture Rental Revenue 1,200 Interest Revenue 100 Wages Expense 19,000 Depreciation Expense 1,800 Utilities Expense 320 Insurance Expense 700 Maintenance Expense 9,000 Income Tax Expense 2,700 58,520 58,520

When preparing the statement of shareholders' equity, the beginning capital balance can always be found

The work sheet is a working paper that accountants can use to summarize adjusting entries and the account balances for the financial statements.

Identify which of the following accounts should be closed with a debit or a credit to Income Summary at the end of the fiscal year. If it is not closed to Income Summary, mark as n/a. 1. Utilities Payable 2. Utilities Expense 3. Supplies 4. Supplies Expense 5. Fees Earned 6. Unearned Fees 7. Accounts Receivable 8. Dividends 9. Retained Earnings 10. Accumulated Depreciation-Equipment 11. Depreciation Expense-Equipment 12. Equipment 13. Prepaid Insurance 14. Insurance Expense

The entry to close the appropriate insurance account at the end of the accounting period is

The closing process is sometimes referred to as closing the books.

The classified balance sheet will show which asset subsections?