Exam 4: Completing the Accounting Cycle

Identify which of the following accounts should be closed with a debit or a credit at the end of the fiscal year. If it is not closed, mark as n/a.​ 1. Utilities Payable 2. Utilities Expense 3. Supplies 4. Supplies Expense 5. Fees Earned 6. Unearned Fees 7. Accounts Receivable 8. Jason Hill, Drawing 9. Jason Hill, Capital 10. Accumulated Depreciation-Equipment 11. Depreciation Expense-Equipment 12. Equipment 13. Prepaid Insurance 14. Insurance Expense

Accrued fees earned but not recorded at August 31 are $25,750. Which of the following is correct for the reversing entry on September 1?

Once an account has been closed for the period, inserting a line in the balance columns zeros out the account, making it ready for the following period.

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 current assets.

Describe a classified balance sheet.

Which of the following accounts should be closed to the capital account at the end of the year?

The accounting cycle requires three trial balances be done. In what order should they be prepared?

Which of the following accounts ordinarily appears in the post-closing trial balance?

The journal entry to close Fees Earned, $750, and Rent Revenue, $175, during the year-end closing process would be

The natural business year is a

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 would flow to (a) the income statement, (b) the statement of owner's equity, or (c) the balance sheet.​ 1. Accounts Payable 2. Dobson, Drawing 3. Depreciation Expense 4. Accumulated Depreciation 5. Fees Earned 6. Unearned Fees 7. Supplies 8. Supplies Expense

The drawing account is a temporary account.

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 most important output of the accounting cycle is the financial statements.

Closing entries

The entry to close the appropriate insurance account at the end of the accounting period is

The balance in the capital account on the worksheet will equal the amount presented in the balance sheet.

Hannah Roberts owns and operates Hannah's Pool Service Company. On January 1, Hannah Roberts, Capital had a balance of $252,000. During the year, Hannah invested an additional $32,000 and withdrew $52,400. For the year ended December 31, Hannah's Pool Service Company reported a net income of $73,200. Prepare a statement of owner's equity for the year ended December 31.

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

A net loss is shown on the work sheet in the Credit columns of both the Income Statement columns and the Balance Sheet columns.