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: What is the company's net income for the year ending December 31, 2018?

At April 1, 2018, Spiderland Company reported a balance of $20,000 in the Retained Earnings account. Spiderland Company earned revenues of $50,000 and incurred expenses of $32,000 during April 2018. The company paid dividends of $10,000 during the month. (a) Prepare the entries to close Income Summary and the Dividends acccount at April 30, 2018. (b) What is the balance in Retained Earnings on the April 30, 2018 post-closing trial balance?

The final step in the accounting cycle is to prepare

After a worksheet has been completed, the statement columns contain all data that are required for the preparation of financial statements.

Which one of the following is usually performed only at the end of a company's annual accounting period?

The income statement for the year 2018 of Fugazi Co. contains the following information: The entry to close the revenue account includes a

Which of the following would not be classified a long-term liability?

The information for preparing a trial balance on a worksheet is obtained from

Closing entries are necessary for

The income statement for the month of June, 2018 of Camera Obscura Enterprises contains the following information: The entry to close the revenue account includes a

The four major classifications of assets in a classified balance sheet are: ________________, ________________, ________________ and ________________.

The following information is for Sunny Day Real Estate: The total dollar amount of liabilities to be classified as current liabilities is

The process of transferring net income (or loss) for the period to Retained Earnings is accomplished by making ______________ entries.

If Income Summary has a credit balance after revenues and expenses have been closed into it, the closing entry for Income Summary will include a

An incorrect debit to Accounts Receivable instead of the correct account Notes Receivable does not require a correcting entry because total assets will not be misstated.

Each of the following accounts is closed to Income Summary except

The income statement for the month of June, 2018 of Camera Obscura Enterprises contains the following information: The entry to close Income Summary to Retained Earnings includes

All of the following are property, plant, and equipment except

Cash and supplies are both classified as current assets.

The adjusted account balances of the Fitness Center at July 31 are as follows: Instructions Prepare the end of the period closing entries for the Fitness Center.