Exam 6: Completing a Worksheet and Completing the Accounting Cycle

If Income Summary has a credit balance after revenues and expenses have been closed into it, the closing entry for Income Summary will include a

The ______________ begins with the analysis of transactions and ends with the post-closing trial balance

The adjustments columns of the worksheet for Mandy Company are shown below. Instructions (a) Prepare the adjusting entries. (b) Assuming the adjusted trial balance amount for each account is normal, indicate the financial statement column to which each balance should be extended.

The income statement for the month of June, 2022 of Snap Shot, Inc. contains the following information: Revenues \7 ,300 Expenses: Salaries and Wages Expense \ 3,000 Rent Expense 1,300 Advertising Expense 700 Supplies Expense 200 Insurance Expense 100 Total expenses 5,300 Net income (loss) \2 ,000 After the revenue and expense accounts have been closed, the balance in Income Summary will be

Indicate the proper sequence of the steps in the accounting cycle by placing numbers 1-8 in the blank spaces.

Which one of the following statements concerning the accounting cycle is incorrect?

Which of the following steps in the accounting cycle may be performed most frequently?

Both correcting entries and adjusting entries always affect at least one balance sheet account and one income statement account.

Income Summary has a credit balance of $19,000 in B. Browne Co. after closing revenues and expenses. The entry to close Income Summary is

Which one of the following is usually prepared only at the end of a company's annual accounting period?

The optional step in the accounting cycle is preparing

The income summary account

The Income Summary account is an important account that is used

A worksheet can be thought of as a(n)

The process of transferring net income (or loss) for the period to Owner's Capital is accomplished by making ______________ entries.

If the total debits exceed total credits in the balance sheet columns of the worksheet, owner's equity

Correcting entries are made

At April 1, 2022, Spiderland Company reported a balance of $20,000 in the Owner's Capital account. Spiderland Company earned revenues of $50,000 and incurred expenses of $32,000 during April 2022. The company had owner drawings of $10,000 during the month. (a) Prepare the entries to close Income Summary and the Owner's Drawings account at April 30, 2022. (b) What is the balance in Owner's Capital on the April 30, 2022, post-closing trial balance?

Four of the nine steps in the accounting cycle are: W. Journalize the transactions. X. Post to the ledger accounts. Y. Journalize and post closing entries. Z. Prepare a trial balance. In what order do these four steps occur?

The income statement of Fezzik's Shoe Repair is as follows: On April 1, the Owner's Capital account had a balance of $12,900. During April, Fezzik withdrew $3,000 cash for personal use. Instructions (a) Prepare closing entries at April 30. (b) Prepare an owner's equity statement for the month of April.