Exam 6: Completing a Worksheet and Completing the Accounting Cycle

Kenham Co. was organized on April 1, 2022. The company prepares monthly financial statements. The adjusted trial balance amounts in the April 30 worksheet are shown below. Debit Credit Cash \ 6,700 Accumulated Depreciation- Accounts Receivable 600 Equipment 850 Prepaid Insurance 1,800 Notes Payable 5,000 Supplies 1,000 Accounts Payable 1,510 Equipment 15,000 Salaries and Wages Payable 400 Owner's Drawings 600 Interest Payable 550 Salaries and Wages Expense 9,400 Owner's Capital 13,000 Insurance Expense 1,200 Service Revenue 15,800 Depreciation Expense 850 Rent Revenue 800 Supplies Expense 200 Utilities Expense 510 Interest Expense 50 \3 7,910 \3 7,910 What is the total in the balance sheet credit column (not including net income)?

The purpose of the post-closing trial balance is to

The amounts appearing on an income statement should agree with the amounts appearing on the post-closing trial balance.

The balance of the salaries and wages payable account will appear in the balance sheet debit column of a worksheet.

The income statement for the year 2022 of Bugati Co. contains the following information: $\begin{array}{lr}\text { Revenues }&&\$73,000\\\text { Expenses: }\\\text { Salaries and Wages Expense } & \$ 43,000 \\\text { Rent Expense } & 12,000 \\\text { Advertising Expense } & 11,000 \\\text { Supplies Expense } & 6,000 \\\text { Utilities Expense } & 3,500 \\\text { Insurance Expense } & 4,000 \\\text { Total expenses }&&79,500\\\text { Net income (loss) }&&\$(6,500)\end{array}$ After the revenue and expense accounts have been closed, the balance in Income Summary will be

The first required step in the accounting cycle is

At March 31, account balances after adjustments for Wide Screen are as follows:

If errors occur in the recording process, they

Prepare the necessary closing entries based on the following selected accounts. Accumulated Depreciation \ 10,000 Depreciation Expense 6,000 Owner's Capital 20,000 Owner's Drawings 9,000 Salaries and Wages Expense 19,000 Service Revenue 40,000

Presented below is an adjusted trial balance for Shawn Company, at December 31, 2022.

Prepare the necessary correcting entry for each of the following. a. A payment on account of $720 was debited to Accounts Payable $270 and credited to Cash $270. b. The collection of Accounts Receivable of $570 was recorded as a debit to Cash $570 and a credit to Service Revenue $570.

Ann Conor owns a small personal training business. Ann is unsure about the closing entry process. Describe to Ann where and how closing entries are recorded in the accounting system. Explain the entries in detail.

These accounts are among the accounts in Sportsline's adjusted trial balance in the worksheet: Accumulated depreciation \ 15,000 Depreciation expense 5,000 Insurance expense 3,000 Prepaid Insurance 6,000 Salaries \& wages expense 20,000 Salaries \& wages payable 7,000 What is the total in the income statement debit column, based only on these accounts?

Which of the following steps in the accounting cycle would not generally be performed daily?

The income statement and balance sheet columns of Beer and Nuts Company's worksheet reflect the following totals: To enter the net income (or loss) for the period into the above worksheet requires an entry to the

Only balance sheet accounts will have balances in the post-closing trial balance.

Identify which of the following accounts would have balances in a post-closing trial balance. (1) Service Revenue (2) Income Summary (3) Notes Payable (4) Interest Expense (5) Cash

The post-closing trial balance will contain only owner's equity statement accounts and balance sheet accounts.

The most efficient way to accomplish closing entries is to

Which of the following companies would be least likely to use a worksheet to facilitate the adjustment process?