Exam 5: The Accounting Cycle Completed

A summary of selected ledger accounts appears below for S. Ball for the current calendar year. Answer the following questions. 1. What was the total amount of withdrawals for the year? 2. What was the net income? 3. What was the total revenue? 4. What were the total expenses?

Accounts in which the balances are carried over from one accounting period to the next are called:

To close the Fees Earned account:

Sandra's Design Studio showed office supplies account showed a balance of $1,000. A count of the supplies left on hand as of June 30 was $700. The adjusting journal entry is:

Adjusting journal entries:

The post-closing trial balance is used to determine if the ledger is in balance after posting adjustments.

The entry to close the revenue account(s) was entered in reverse-Income Summary was debited and the revenue account(s) was/were credited. The result of this error is that:

There are 7 closing entries.

When the expenses are closed:

A real account is the same as a permanent account.

The business failed to close any of the revenue accounts. The result of this error is that:

Which of the following accounts should NOT be closed to Income Summary at the end of the fiscal year?

When the Withdrawals account is closed:

In the first space below, indicate whether each account is a real or nominal account using (R) Real Account and (N) Nominal Account. In the second space below, indicate by an (X) if the account should be closed.

B. Jensen's worksheet showed the revenue account, Rental Fees, $1,800. The journal entry to close the account is:

The adjusting entry for accrued salaries is to:

In the normal accounting cycle, the:

The Income Summary account can be found on the worksheet.

The balance in the J. Higgins, Withdrawals account was $3,200. The entry to close the account would include a:

After closing the revenue, expense, and withdrawal accounts, the capital increased by $2,500. Which of the following situations could have occurred?