Exam 5: The Accounting Cycle Completed

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.

Identify whether the entries below are an adjusting entry (AE) or a closing entry (CE). -________

The post-closing trial balance contains the beginning figure for Capital.

The entry to close Income Summary (net loss) was entered in reverse-Income Summary was debited and Capital was credited. This error will cause:

All closing entries must be posted after preparing the post-closing trial balance.

M. Sims showed a net income of $8,000. The entry to close the Income Summary account would include a:

When the balance in the Income Summary account is a debit, the company has:

After posting adjusting entries, the permanent accounts will be set back to zero.

The income statement debit column of the worksheet showed the following expenses: The journal entry to close the expense accounts is:

The income statement and balance sheet sections of the worksheet provide the information needed to prepare the closing entries.

Which of the following accounts is a temporary account?

Closing entries are not included in the adjustment columns of the worksheet.

The revenue accounts debited and the Income Summary account credited would be the result of:

From the following items in the income statement columns of the worksheet of Monaghan Company at December 31, prepare the closing entries without explanation, assuming that a $500 withdrawal was made during the period.

The Income Summary account shows debits of $35,824 and credits of $25,977. This results in:

The entry to close the Depreciation Expense account would cause: