Exam 4: Completing the Accounting Cycle

Which one of the following is an optional step in the accounting cycle of a business enterprise?

The subtotal net assets is used in

A post-closing trial balance is prepared

The income statement for the year 2015 of Fugazi Co. contains the following information: $\begin{array}{lr}\text { Revenues }&&\$70,000\\\text { Expenses: }\\\text { Salaries and Wages Expense } & \$ 45,000 \\\text { Rent Expense } & 12,000 \\\text { Advertising Expense } & 10,000 \\\text { Supplies Expense } & 6,000 \\\text { Utilities Expense } & 2,500 \\\text { Insurance Expense } & 2,000 \\\text { Total expenses }&&77,500\\\text { Net income (loss) }&&\$(7,500)\end{array}$ The entry to close Income Summary to Retained Earnings includes

A worksheet is a multiple column form that facilitates the

Correcting entries

Closing entries are necessary for

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 The current assets should be listed on Postal Service's balance sheet in the following order:

The adjustments entered in the adjustments columns of a worksheet are

On March 8, Black Candy Company bought supplies on account from the Arcade Fire Company for $550. Black Candy Company incorrectly debited Equipment for $500 and credited Accounts Payable for $500. The entries have been posted to the ledger. the correcting entry should be: a. Supplies $\quad$$\quad$ 550 $\quad$ Accounts Payable $\quad$ 550 b. Supplies $\quad$$\quad$ 550 $\quad$ Accounts Payable $\quad$ 500 $\quad$ Equipment $\quad$$\quad$ 50 c. Supplies $\quad$$\quad$ 550 $\quad$ Equipment $\quad$$\quad$ 550 d. Supplies $\quad$$\quad$ 550 $\quad$ Equipment $\quad$ 500 $\quad$ Accounts Payable $\quad$ 50

The classified balance sheet is

Preparing a worksheet involves

Long-term investments would appear in the property, plant, and equipment section of the balance sheet.

It is not true that current assets are assets that a company expects to

The income statement for the month of June, 2015 of Camera Obscura Enterprises contains the following information: Revenues \7 ,000 Expenses: Salaries and Wages Expense \ 3,000 Rent Expense 1,500 Advertising Expense 800 Supplies Expense 300 Insurance Expense 100 Total expenses 5,700 Net income \1 ,300 The entry to close the expense accounts includes a