Exam 4: Completing the Accounting Cycle

The unadjusted, adjusted, and final trial balances are prepared during the accounting cycle of a period.

The difference between the totals of the Debit and Credit columns of the Adjusted Trial Balance columns on the end-of-period spreadsheet

Since the adjustments are entered on the work sheet, it is not necessary to record them in the journal or post them to the ledger.

Once the adjusting entries are posted, the adjusted trial balance is prepared to

Use the following end-of-period spreadsheet to answer the questions that follow. ​ ​ ​ -Use the end-of-period spreadsheet for Finley Company. The ending balance in C. Finley, Capital is

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

Assets, liabilities, and owner's capital are real accounts and do not get closed at the end of the period.

The last step of the accounting cycle is to prepare a post-closing trial balance.

Use the adjusted trial balance for Stockton Company to answer the questions that follow. ? Stockton Company Adjusted Trial Balance December 31 Account No. Debit Balances Credit Balances Cash 11 6,530 Accounts Receivable 12 2,100 Prepaid Expenses 13 700 Equipment 18 13,700 Accumulated Depreciation 19 1,100 Accounts Payable 21 1,900 Notes Payable 22 4,300 Bob Steely, Capital 31 12,940 Bob Steely, Drawing 32 790 Fees Earned 41 9,250 Wages Expense 51 2,500 Rent Expense 52 1,960 Utilities Expense 53 775 Depreciation Expense 54 250 Miscellaneous Expense 59 \_\_\_\_\_ Totals -Use the adjusted trial balance for Stockton Company. Determine the net income (loss) for the period.

Accrued expenses are ordinarily listed on the balance sheet as current assets.

The usual presentation of the statement of owner's equity is (1) Beginning capital, (2) Net income or loss, (3) Drawing, (4) Owner's contributions, and (5) Ending capital.

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

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

Office Equipment is an example of a current asset account.

The following are all the steps in the accounting cycle. List them in the order in which they should be done.- Closing entries are journalized and posted to the ledger.- An unadjusted trial balance is prepared.- An optional end-of-period spreadsheet (work sheet) is prepared.- A post-closing trial balance is prepared.- Adjusting entries are journalized and posted to the ledger.- Transactions are analyzed and recorded in the journal.- Adjustment data are assembled and analyzed.- Financial statements are prepared.- An adjusted trial balance is prepared.- Transactions are posted to the ledger.

Which of the following is not an essential part of the accounting records?

Robert Evans owns a business, Beachside Realty, that rents condominiums and furnishings. Below is the adjusted trial balance at December 31.​ Prepare the entry required to close the drawing account at the end of the period.

Robert Evans owns a business, Beachside Realty, that rents condominiums and furnishings. Below is the adjusted trial balance at December 31.​ Prepare the entry required to close the revenue and expense accounts at the end of the period.

The end-of-period spreadsheet

Diane's Designs purchased a one-year liability insurance policy on March 1 of a year for $8,400 and recorded it as a prepaid expense. Which of the following amounts would be recorded as insurance expense during the adjusting process at the end of Diane's first month of operations on March 31?