Exam 4: Completing the Accounting Cycle

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2018: The current assets should be listed on Postal Service's balance sheet in the following order:

The Dividends account is closed to the ______________ account at the end of the accounting period.

Adjusting entries are prepared from

On September 23, Sebadoh Company received a $350 check from Surfer Rosa Inc. for services to be performed in the future. The bookkeeper for Sebadoh Company incorrectly debited Cash for $350 and credited Accounts Receivable for $350. The amounts have been posted to the ledger. To correct this entry, the bookkeeper should

Liabilities are generally classified on a balance sheet as

Closing entries are made

Identify which of the following are temporary accounts of Sabrina Company.

The following information is for Bright Eyes Auto Supplies: The total dollar amount of liabilities to be classified as current liabilities is

The amounts appearing on an income statement should agree with the amounts appearing on the post-closing trial balance.

The two optional steps in the accounting cycle are preparing

At the end of an accounting period, all revenue and expense accounts are closed to a temporary account called ______________.

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2018: What is the book value of the equipment at December 31, 2018?

A lawyer collected $710 of legal fees in advance. He erroneously debited Cash for $170 and credited Accounts Receivable for $170. The correcting entry is

As Mel Smith 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 $180 was received as payment on account. The bookkeeper debited Accounts Payable for $810 and credited Accounts Receivable for $810. (c) When making the entry to record the year's depreciation expense, the bookkeeper debited Accumulated Depreciation-Equipment 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.)

These financial statement items are for Rugen Company at year-end, July 31, 2018. Instructions (a) Prepare an income statement and a retained earnings statement for the year. Stockholders not make any new investments during the year. (b) Prepare a classified balance sheet at July 31.

If total credits in the income statement columns of a worksheet exceed total debits, the business has net income.

Which of the following steps in the accounting cycle may be performed most frequently?

A post-closing trial balance is prepared

The income statement for the month of June, 2018 of Camera Obscura Enterprises contains the following information: After the revenue and expense accounts have been closed, the balance in Income Summary will be

What is the order in which assets are generally listed on a classified balance sheet?