Exam 4: Completing the Accounting Cycle

The adjustments columns of the worksheet for McGee Company are shown below. Instructions (a) Prepare the adjusting entries. (b) Assuming the adjusted trial balance amount for each account is normal, indicate the financial statement column to which each balance should be extended.

Reisner Company prepared the following adjusting entries at year end on December 31, 2010: In an effort to minimize errors in recording transactions, Reisner Company utilizes reversing entries. Instructions Prepare reversing entries on January 1, 2011, for the adjusting entries given where appropriate.

A double rule applied to accounts in the ledger during the closing process implies that

Farr Company paid the weekly payroll on January 2 by debiting Wages Expense for $45,000. The accountant preparing the payroll entry overlooked the fact that Wages Expense of $27,000 had been accrued at year end on December 31. The correcting entry is

The following information is for Acme Auto Supplies: The total dollar amount of assets to be classified as property, plant, and equipment is

Intangible assets include each of the following except

In order to close the owner's drawing account, the

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

Preparing a worksheet involves

A lawyer collected $830 of legal fees in advance. He erroneously debited Cash for $380 and credited Accounts Receivable for $380. The correcting entry is

The worksheet for Gibler Rental Company appears below. Using the adjustment data below, complete the worksheet. Add any accounts that are necessary. Adjustment data: (a) Prepaid rent expired during August, $2. (b) Depreciation expense on office equipment for the month of August, $8. (c) Supplies on hand on August 31 amounted to $6. (d) Salaries expense incurred at August 31 but not yet paid amounted to $10.

The income statement for the year 2010 of Poole Co. contains the following information: After all closing entries have been posted, the Income Summary account will have a balance of

The following information is for Benton Office Supplies: The total dollar amount of assets to be classified as current assets is

As Mark Heins was doing his year-end accounting, he noticed that the bookkeeper had made errors in recording several transactions. The erroneous transactions are as follows: (a) A check for $700 was issued for goods previously purchased on account. The bookkeeper debited Accounts Receivable and credited Cash for $700. (b) A check for $380 was received as payment on account. The bookkeeper debited Accounts Payable for $830 and credited Accounts Receivable for $830. (c) When making the entry to record the year's depreciation expense, the bookkeeper debited Accumulated Depreciation for $1,000 and credited Cash for $1,000. (d) When accruing interest on a note payable, the bookkeeper debited Interest Receivable for $200 and credited Interest Payable for $200. Instructions Prepare the appropriate correcting entries. (Do not reverse the original entries.)

Closing entries are

The income statement for the year 2010 of Poole Co. contains the following information: The entry to close Income Summary to Poole, Capital includes

The following items are taken from the financial statements of Dinkel Company for the year ending December 31, 2010: What is the company's net income for the year ending December 31, 2010?

Use the following income statement for the year 2010 for J. Waters Company to prepare entries to close the revenue and expense accounts for the company. SO: 2, Bloom: AN, Difficulty: Medium, Min: 5, AACSB: Analytic, AICPA BB: Industry/Sector Perspective, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: FSA

Liabilities are generally classified on a balance sheet as

The trial balances of Orton Company follow with the accounts arranged in alphabetic order. Analyze the data and prepare (a) the adjusting entries and (b) the closing entries made by Orton Company.