Exam 4: Completing the Accounting Cycle

Your Best Advisors, a service company, uses reversing entries. On March 31, 2016, they journalized and posted the following adjusting entry to accrue Utilities Expense: Which of the following entries is the correct reversing entry to be prepared on April 1, 2016?

Which of the following account's balance is carried forward to the next accounting period?

On December 31, 2016, Axle Services Company prepared the following accrual adjustment: The company paid salaries amounting to $1,500 on January 7, 2017 for the two-week pay period that ended on January 6, 2017. Journalize the entries for January 1, 2017 and January 7, 2017, assuming the company uses reversing entries.

The beginning balance in the Owner, Capital account of a company was $13,000. The revenues and expenses were $240,000 and $120,000, respectively. During the year, the owner made withdrawals of $6,000. The ending balance in the Owner, Capital was $114,000. (Assume that the opening balance of in Owner, Capital was zero, and the owner made no new contributions during the year.)

Which of the following accounts will be included in a post-closing trial balance?

The Interest Expense in the worksheet's unadjusted trial balance column is $3,500. Interest Expense in the income statement column is $14,000. Which of the following entries would have caused this difference?

In which of the columns of a worksheet would a net loss be found?

Which of the following statements is true of the worksheet?

Under which of the following categories would Accounts Payable appear?

Which of the following entries will be necessary to close the Insurance Expense account at the end of the year?

The net income of Harriet Company for the year is $25,000. The owner made withdrawals during the year of $30,000. Which of the following statements is true?

Which of the following would be considered a long-term asset?

Which of the following statements is true of the worksheet?

Revenues and expenses are transferred to the ________ account before their final transfer into the Retained Earnings account.

Rosewood earned revenues of $19,000 and incurred expenses of $4,500. The owner made withdrawals of $2,500. What is the balance in the Income Summary account after closing net income or loss to the Owner, Capital account?

Which accounts are closed at the end of the accounting period? Why is it necessary to close these accounts?

The Service Revenue account is a permanent account.

Revenue and expense accounts are closed to the Income Summary account.

The balances of select accounts of Sandra Company as of December 31, 2016 are given below: The insurance has been prepaid until June 30, 2017. Determine the amount of total current assets reported on the balance sheet.

The Depreciation Expense account is a temporary account.