Exam 4: Completing the Accounting Cycle

The post-closing trial balance differs from the adjusted trial balance in that it does not

After all of the account balances have been extended to the Balance Sheet columns of the work sheet, the totals of the debit and credit columns show debits of $37,686 and the credits of $41,101. This indicates that

All companies must use a calendar year as their fiscal year.

Which of these accounts would appear in the Balance Sheet columns of the end-of-period spreadsheet?

Prepaid Insurance is an example of a current asset.

Journalizing and posting the adjustments and closing entries update the ledger for the new accounting period.

Use the adjusted trial balance for Stockton Company below to answer the questions that follow. -Determine the net income loss) for the period.

The work sheet is not considered a part of the formal accounting records.

The end-of-period spreadsheet work sheet) for the current year for Jamal Company shows Balance Sheet columns with a debit total of $614,210 and a credit total of $630,430. This is before the amount for net income or net loss has been included. In preparing the income statement from the work sheet, what is the amount of net income or net loss?

Net income appears on the end-of-period spreadsheet in the

Use the adjusted trial balance for Stockton Company below to answer the questions that follow. -Determine the retained earnings ending balance.

Deferred expenses that benefit a relatively short period of time are listed on the balance sheet as current assets.

The trial balance may be listed on the work sheet instead of being prepared separately.

After all adjustments have been made, but before the accounts have been closed, the following balances were taken from the ledger of Ramona's Designs: Accounts Payable \ 27,600 Rent Expense \ 32,700 Accounts Receivable 64,500 Salary Expense 41,390 Accumulated Depreciation 73,325 Salaries Payable 8,150 Cash 17,150 Service Revenue 186,000 Depreciation Expense 13,500 Supplies 1,500 Equipment 165,000 Supplies Expense 2,500 Insurance Expense 2,510 Common Stock 79,950 Prepaid Insurance 6,275 Dividends 48,000 Retained Earnings 20,000 Journalize the entries to close the appropriate accounts.

Which one of the steps below is not aided by the preparation of the end-of-period spreadsheet?

Accumulated Depreciation is a permanent account.

The following adjusted trial balance is the result of the adjustments made at the end of the month of March for Martin Corporation. Use these adjusted values to journalize the closing entries for Martin Corporation.

Match each journal entry that follows as one of the types of journal entries a-c) below. -Cash 450 Fees Earned 450

Which of the accounts below would be closed by posting a debit to the account?

Liabilities that will be due within one year or less and that are to be paid out of current assets are called current liabilities.