Exam 4: Completion of the Accounting Cycle

The following are the adjusted account balances of Sally's Salon and Spa as at June 30, 2014, the business year end. The accounts are listed in alphabetical order, and all are in their normal balance. Additional information: The note payable is due January 31, 2015. During the year, Sally Juul-Hansen invested $10,000. Instructions Prepare the income statement, statement of owner equity, and classified balance sheet for Sally's June 30, 2014 year end in good format.

Which of the following is a true statement about closing the books of a proprietorship?

Another name for Balance Sheet is the Statement of Financial Position.

Closing entries are made

It is not necessary to prepare formal financial statements if a work sheet has been prepared because financial position and profit are shown on the work sheet.

The income statement and balance sheet columns of Rand Company's work sheet reflect the following totals: -The profit (or loss) for the period is

An intangible asset

Closing entries are

After the adjusting entries are journalized and posted to the accounts in the general ledger, the balance of each account should agree with the balance shown on the

All Canadian public companies must follow International Financial Reporting Standards.

The current ratio is expressed as

Correcting entries will only be done at the same time as the adjusting entries are being prepared.

A company has only one accounting cycle over its economic existence.

The following are selected unadjusted account balances as at December 31, 2014, the year end of Joseph's Law Firm: Additional information obtained from a review of the law firm's records: 1. Work done for clients in December that will be invoiced in January is $9,800. 2. Prepaid insurance includes $12,600 paid for a one-year policy that was effective December 1, 2014. 3. Salaries are paid monthly on the 15^th of each month. The salaries earned by employees from December 16 to 31^st total $5,000. Instructions a. Prepare the December 31, 2014 adjusting entries required for these items. b. Prepare the reversing entries required for January 1, 2015.

Long-term investments would appear in the property, plant, and equipment section of the balance sheet.

The adjustments on a work sheet can be posted directly to the accounts in the ledger from the work sheet.

All revenue accounts (totalling $600,000), expense accounts (totalling $650,000), and the Income Summary account have been closed for the year ended December 31, 2014 for Fineberg Productions, an unincorporated business. After closing those accounts, P. Fineberg, Capital has a balance of $115,000, and P. Fineberg, Drawings has a balance of $48,000. Instructions a. Journalize the entries required to complete the closing of the accounts. b. Prepare a statement of owner's equity for the year ended December 31, 2014.

The relationship between current assets and current liabilities is important in evaluating a company's

The closing entry process consists of closing

Kean's Biotechnologies is located in Kelowna, British Columbia. It is a leader in the development of computer adapted bio-technical scanning and the pre-eminent company operating in this industry. The following data (in millions) were taken from Kean's most recent financial statements. Instructions a. Calculate the working capital and current ratio for each year. b. Discuss Kean's liquidity in 2016 compared to the previous two years. c. Compare the purpose of the current ratio to the acid-test ratio and explain what additional information would be needed to calculate the acid-test ratio for Kean's Biotechnologies.