Exam 6: Completing a Worksheet and Completing the Accounting Cycle

Which one of the following is an optional step in the accounting cycle of a business enterprise?

An error has occurred in the closing process if

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

In preparing closing entries

A double rule applied to accounts in the ledger during the closing process implies that

Assuming that there is a net loss for the period, debits equal credits in all but which section of the worksheet?

At the end of an accounting period, all revenue and expense accounts are closed to a temporary account called ______________.

The owner's drawings account is a permanent account whose balance is carried forward to the next accounting period.

These accounts are among the accounts in Sportsline's adjusted trial balance in the worksheet: Accounts payable \ 15,000 Accounts receivable 19,000 Cash 9,000 Equipment 30,000 Notes payable 10,000 Owner's Capital 33,000 What are the total debits in the adjusted trial balance in the worksheet, based only on these accounts?

The step in the accounting cycle that is performed on a periodic basis (i.e., monthly, quarterly) is

The income statement for the year 2022 of Bugati Co. contains the following information: $\begin{array}{lr}\text { Revenues }&&\$73,000\\\text { Expenses: }\\\text { Salaries and Wages Expense } & \$ 43,000 \\\text { Rent Expense } & 12,000 \\\text { Advertising Expense } & 11,000 \\\text { Supplies Expense } & 6,000 \\\text { Utilities Expense } & 3,500 \\\text { Insurance Expense } & 4,000 \\\text { Total expenses }&&79,500\\\text { Net income (loss) }&&\$(6,500)\end{array}$ The entry to close Income Summary to Owner's Capital includes

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

Closing entries are necessary for

Indicate the worksheet column (income statement Dr., balance sheet Cr., etc.) to which each of the following accounts would ________________

The balance of the depreciation expense account will appear in the income statement debit column of a worksheet.

A correcting entry

On Feb. 2, Ben's Cafe journalized and posted a $70 cash collection on account from a customer as a debit to Cash $70 and a credit to Service Revenue $70. The correcting entry should include a

An examination of the accounts of Salvage Company for the month of June revealed the following errors after the transactions were journalized and posted. 1. A check for $950 from S. Wilde, a customer on account, was debited to Cash $950 and credited to Service Revenue, $950. 2. A payment for Advertising Expense costing $720 was debited to Utilities Expense, $270 and credited to Cash $270. 3. A bill for $950 for Supplies purchased on account was debited to Equipment, $590 and credited to Accounts Payable $590. Instructions Prepare correcting entries, with explanations, for each of the above assuming the erroneous entries are not reversed. Explain how the transaction as originally recorded affected net income for the month of June.

Which of the following depicts the proper sequence of steps in the accounting cycle?

A worksheet is a mandatory form that must be prepared along with an income statement and balance sheet.