Exam 4: Completion of the Accounting Cycle

To close the depreciation expense account

The account, Supplies, will appear in the debit columns of the work sheet for all columns EXCEPT the

The income statement of Rebecca's Shoe Repair is as follows: REBECCA'S SHOE REPAIR Income Statement Month Ended April 30, 2014 Revenue On April 1, the balance in Rebecca Weite, Capital was $11,200. During April, Rebecca withdrew $8,200 cash for personal use. Instructions a. Prepare closing entries at April 30. b. Prepare a statement of owner's equity for the month of April.

The adjusted trial balance of Special Event Security Services (SESS), an unincorporated business owned and operated by Jim Popovich, is provided below. Instructions Prepare, in good format, the income statement, statement of owner equity, and classified balance sheet for SESS for the year ended September 30, 2014.

The accounting cycle begins at the start of a new accounting period.

Which of the following will be affected by a reclassification of assets from current to non-current?

The account balances appearing on the trial balance were taken from the general ledger of Giovanni's Copy Shop at June 30. Additional information for the month of June which has not yet been recorded in the accounts is as follows: a. A physical count of supplies indicates $600 on hand at June 30. b. The amount of insurance that expired in the month of June was $400. c. Depreciation on equipment for June was $800. d. Rent owed on the copy shop for the month of June was $1,000 but will not be paid until July. Instructions Using the above information, complete the following work sheet for Giovanni's Copy Shop for the month of June.

As Al Choi was doing his year-end accounting, he noticed that the bookkeeper had made errors in recording several transactions. The erroneous transactions are as follows: 1. A cheque for $900 was issued for supplies previously purchased on account. The bookkeeper debited Accounts Receivable and credited Cash for $900. 2. A cheque for $680 was received as payment on account. The bookkeeper debited Accounts Payable for $860 and credited Accounts Receivable for $860. 3. When making the entry to record the year's depreciation expense, the bookkeeper debited Accumulated Depreciation for $3,500 and credited Cash for $3,500. 4. When accruing the interest on a note payable, the bookkeeper debited Cash for $200 and credited Interest Payable for $200. Instructions Prepare the appropriate correcting entries. (Do not reverse the original entries.)

When using a work sheet, adjusting entries are journalized

Correcting entries are made any time an error is discovered even though it may not be at the end of an accounting period.

Under IFRS which terms are used as a heading to the balance sheet?

A correcting entry

The following selected accounts appear in the adjusted trial balance for Bender Company. 1. Accumulated Depreciation 5. Supplies 2. Depreciation Expense 6. Accounts Payable 3. J. Bender, Capital 7. Service Revenue 4. J. Bender, Drawings Instructions Identify the accounts that would be included in the post-closing trial balance.

The adjusted trial balance for Novakowski Company as of December 31, 2014 is as follows: Instructions a. Prepare a classified balance sheet for Novakowski Company. b. Calculate working capital and the current and acid-test ratios for Novakowski Company.

Carr Company paid the weekly payroll on January 2 by debiting Wages Expense for $40,000. The accountant preparing the payroll entry overlooked the fact that Wages Expense of $24,000 had been accrued at year end on December 31. The correcting entry is

After closing entries are posted, the balance in the owner's capital account in the ledger will be equal to

Closing the drawings account to Capital is not necessary if profit is greater than owner's drawings during the period.

A current asset is