Exam 6: Completing a Worksheet and Completing the Accounting Cycle

If total credits in the income statement columns of a worksheet exceed total debits, the enterprise has a net loss.

Ferdia Peelo is preparing a worksheet. Indicate to which column that Ferdia should extend the following adjusted trial balance accounts to the financial statement columns of the worksheet. Adjusted trial balance accounts: Column to extend balance: Cash Depreciation Expense Accounts Payable Owner's Drawings Supplies Rent Revenue

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

The account balances appearing on the trial balance (below) were taken from the general ledger of Speedy Copy Shop at September 30. Additional information for the month of September which has not yet been recorded in the accounts is as follows: (a) A physical count of supplies indicates $500 on hand at September 30. (b) The amount of insurance that expired in the month of September was $400. (c) Depreciation on equipment for September was $600. (d) Rent owed on the copy shop for the month of September was $750 but will not Instructions Using the above information, complete the worksheet on the following page for Speedy Copy Shop for the month of September.

All revenue and expense accounts have been closed at the end of the calendar year for Patton Company. The Income Summary account has total debits of $530,000 and total credits of $600,000. As of the same date, Owner's Capital has a balance of $115,000, and Owner's Drawings has a balance of $48,000. Instructions (a) Journalize the entries required to complete the closing of the accounts. (b) Prepare an owner's equity statement for the year ended December 31, 2022.

Bonita Arcade paid the weekly payroll on January 2 by debiting Salaries and Wages Expense for $45,000. The accountant preparing the payroll entry overlooked the fact that Salaries and Wages Expense of $23,000 had been accrued at year end on December 31. The correcting entry is

To close net income to owner's capital, Income Summary is debited and Owner's Capital is credited.

The income statement for the year 2022 of Bugati Co. contains the following information: $\begin{array}{lr}\text { Revenues }&&\$73,000\\\text { Expenses: }\\\text { Salaries and Wages Expense } & \$ 43,000 \\\text { Rent Expense } & 12,000 \\\text { Advertising Expense } & 11,000 \\\text { Supplies Expense } & 6,000 \\\text { Utilities Expense } & 3,500 \\\text { Insurance Expense } & 4,000 \\\text { Total expenses }&&79,500\\\text { Net income (loss) }&&\$(6,500)\end{array}$ At January 1, 2022, Bugati reported owner's capital of $50,000. Owner drawings for the year totaled $13,000. At December 31, 2022, the company will show in the post-closing trial balance owner's capital of

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 At June 1, 2022, Snap Shot reported owner's equity of $36,000. The company had no owner drawings during June. At June 30, 2022, the company will report owner's equity of

Which of these steps of the accounting cycle occur at year-end only (as opposed to during the accounting period, or at the end of the accounting period)?

The final closing entry to be journalized is typically the entry that closes the

The heading for a post-closing trial balance has a date line that is similar to the one found on

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. What will be total owner's equity in the April 30 balance sheet?

As Mel Smith was doing his year-end accounting, he noticed that the bookkeeper had made errors in recording several transactions. The erroneous transactions are as follows: (a) A check for $700 was issued for goods previously purchased on account. The bookkeeper debited Accounts Receivable and credited Cash for $700. (b) A check for $180 was received as payment on account. The bookkeeper debited Accounts Payable for $810 and credited Accounts Receivable for $810. (c) When making the entry to record the year's depreciation expense, the bookkeeper debited Accumulated Depreciation-Equipment for $1,000 and credited Cash for $1,000. (d) When accruing interest on a note payable, the bookkeeper debited Interest Receivable for $200 and credited Interest Payable for $200. Instructions Prepare the appropriate correcting entries. (Do not reverse the original entries.)

Coe Company earned net income of $56,000 during 2022. The company had owner drawings totaling $35,000 during the period. Prepare the entries to close Income Summary and the Owner's Drawings account.

The balance of Accumulated Depreciation will appear in the balance sheet credit column of a worksheet.

Prepare the necessary correcting entry for each of the following. a. A collection on account of $350 from a customer was credited to Accounts Receivable $530 and debited to Cash $530. b. The purchase of supplies on account for $310 was recorded as a debit to Equipment $310 and a credit to Accounts Payable $310.

The preparation of a ______________ is an optional step in the accounting cycle.

The post-closing trial balance contains only

Which is true about the worksheet?