Exam 4: Completing the Accounting Cycle

The difference between a classified balance sheet and one that is not classified is that the classified one has subheadings.

Cash and other assets that may reasonably be expected to be realized in cash, sold, or consumed through the normal operations of a business, usually longer than one year, are called current assets.

The amount of the net income for a period appears on both the income statement and the balance sheet for that period.

Unearned Fees appear on the

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 Prepare the entry required to close the Dividends account at the end of the period.

Stockholders' equity is

The dividends account is closed to the income summary account.

Which one of the fixed asset accounts listed below will not have a related contra asset account?

The balances for the accounts listed below appear in the Adjusted Trial Balance columns of the end-of-period spreadsheet work sheet). Indicate whether each balance should be extended to a) an Income Statement column or b) a Balance Sheet column. 1. Retained Earnings 2. Common Stock 3. Depreciation Expense 4. Accumulated Depreciation 5. Fees Earned 6. Unearned Fees 7. Supplies 8. Supplies Expense

Which of the following account groups are nominal accounts?

A net loss appears on the end-of-period spreadsheet in the

Examples of temporary accounts are Supplies and Prepaid Expenses, which are in the ledger for just a short time before they expire.

List and describe the purpose of the four closing entries.

The entry to close the dividends account would be

Prepaid insurance is reported on the balance sheet as a

You have just accepted your first job out of college, which requires you to evaluate loan requests at Eastwood National Bank. The first loan request you receive is from Richard Enterprises. Richard Tracy, the CEO, is requesting $105,000 and brings you the following trial balance or statement of accounts) for the first year of operations ended December 31. Which of the following accounts do you think might need to be adjusted before an accurate set of financial statements could be prepared? Richard Enterprises Statement of Accounts December 31 Cash \ 2,050 Billings Due from Others 15,070 Office Supplies 7,470 Trucks 36,370 Equipment 8,090 Amounts Owed to Others \ 2,850 Investment in Business 33,500 Service Revenues 73,650 Wages Expense 30,050 Rent Expense 7,330 Insurance Expense 2,400 Utilities Expenses 700 Miscell aneous Expenses 470 Totals \ 110,000 \ 110,000

The income statement will present

Balance sheet accounts are not considered real accounts.

The balance sheet accounts are referred to as real or permanent accounts.

The dividends account is a temporary account.