Exam 4: Completing the Accounting Cycle

The following information is for Sunny Day Real Estate: Sunny Day Real Estate Balance Sheet December 31, 2015 Cash \ 25,000 Accounts Payable \ 60,000 Prepaid Insurance 30,000 Salaries and Wages Payable 15,000 Accounts Receivable 50,000 Mortqage Payable 85,000 Inventory 70,000 Total Liabilities 160,000 Land Held for Investment 85,000 Land 120,000 Buildings \ 100,000 Common Stock \ 120,000 Less Accumulated Retained Earnings 250,000 370,000 Trademark 70,000 Total Liabilities and Total Assets \ 530,000 Stockholders' Equity \ 530,000 The total dollar amount of liabilities to be classified as current liabilities is

Adjusting entries are prepared from

An error has occurred in the closing entry process if

On a classified balance sheet, current assets are customarily listed

Under IFRS

If a company utilizes reversing entries, they will

Current assets are customarily the first items listed on a classified balance sheet.

Merriweather Post Pavillion received a $820 check from a customer for the balance due. The transaction was erroneously recorded as a debit to Cash $280 and a credit to Service Revenue $280. The correcting entry is

When using a worksheet, adjusting entries are journalized

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2015: Accounts payable \ 18,000 Accounts receivable 11,000 Accumulated depreciation - equipment 28,000 Advertising expense 21,000 Cash 15,000 Common stock 42,000 Dividends 14,000 Depreciation expense 12,000 Insurance expense 3,000 Note payable, due 6/30/16 70,000 Prepaid insurance (12-month policy) 6,000 Rent expense 17,000 Retained earnings (1/1/15) 60,000 Salaries and wages expense 32,000 Service revenue 133,000 Supplies 4,000 Supplies expense 6,000 Equipment 210,000 What are total current liabilities at December 31, 2015?

Closing the dividends account to Retained Earnings is not necessary if net income is greater than dividends during the period.

Which of the following would not be classified a long-term liability?

The first required step in the accounting cycle is

Liabilities are generally classified on a balance sheet as

To close net income to retained earnings, Income Summary is debited and Retained Earnings is credited.

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2015: Accounts payable \ 18,000 Accounts receivable 11,000 Accumulated depreciation - equipment 28,000 Advertising expense 21,000 Cash 15,000 Common stock 42,000 Dividends 14,000 Depreciation expense 12,000 Equipment 210,000 Insurance expense 3,000 Note payable, due 6/30/16 70,000 Prepaid insurance (12-month policy) 6,000 Rent expense 17,000 Retained earnings (1/1/15) 60,000 Salaries and wages expense 32,000 Service revenue 133,000 Supplies 4,000 Supplies expense 6,000 The sub-classifications for assets on the company's classified balance sheet would include all of the following except

The following selected account balances appear on the December 31, 2015 balance sheet of Superchunk Co. Land (location of the office building) \ 150,000 Land (held for future use) 225,000 Office Building 800,000 Inventory 300,000 Equipment 675,000 Office Furniture 225,000 Accumulated Depreciation 640,000 What is the total net amount of property, plant, and equipment that will be reported on the balance sheet?

Intangible assets include each of the following except

The use of fair value to report assets

A worksheet can be thought of as a(n)