Exam 4: Completing the Accounting Cycle

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

On the income statement, miscellaneous expenses are usually presented as the last item without regard to the dollar amount.

Cross-referencing is useful in assuring that the debits and credits are in balance.

The drawing account is debited in the closing entry.

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

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 owner's equity ending balance.

The income statement is prepared from the adjusted trial balance or the Income Statement columns on the work sheet.

If end-of-period spreadsheets are not considered part of the formal accounting records, why are they used?

Which of the following is not true about closing entries?

Prepaid insurance is reported on the balance sheet as a

The income statement is prepared from​

A post-closing trial balance contains only asset and liability accounts.

Which of the following accounts would not appear in the Balance Sheet columns of the end-of-period spreadsheet?

Which of the following accounts will be debited in the closing entry at the end of the year?

You evaluate loan requests as part of your job at Eastwood National Bank. One loan request you received is from Surfer Dude Supplies, a small proprietorship. Richard Tracy, the owner, is requesting $105,000 and brings you a trial balance (or statement of accounts) for his first year of operations ended December 31.​RequiredWhile you are willing to work with Richard, how would you explain to him that a complete set of financial statements from his accountant would be more useful for evaluating the loan request?

Unearned revenues that will be earned in a relatively short period of time are listed on the balance sheet as current assets.

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

Balance sheet accounts are not considered real accounts.

Unearned fees appear on the

The classified balance sheet will show which liability subsections?