Exam 6: Completing a Worksheet and Completing the Accounting Cycle

When constructing a worksheet, accounts are often needed that are not listed in the trial balance already entered on the worksheet from the ledger. Where should these additional accounts be shown on the worksheet?

The worksheet for Montoya Company has been completed through the adjusted trial balance. You are ready to extend each amount to the appropriate financial statement column. Indicate for each account, the financial statement column to which the account should be extended by placing a check mark ( $\surd$ ) in the appropriate column.

Selected worksheet data for Mannie Company are presented below.

Eastwood Post Pavillion received a $650 check from a customer for the balance due. The transaction was erroneously recorded as a debit to Cash $560 and a credit to Service Revenue $560. The correcting entry is

Which is not true about the worksheet?

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

The account balances appearing in the adjusted trial balance columns are extended to the ______________ columns and the ______________ columns.

Prepare the necessary correcting entry for each of the following. a. A payment of $5,000 for salaries was recorded as a debit to Supplies Expense and a credit to Cash. b. A purchase of supplies on account for $1,000 was recorded as a debit to Equipment and a credit to Accounts Payable.

The balance in the income summary account before it is closed will be equal to

The worksheet does not show

When using a worksheet, adjusting entries are journalized

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

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 the revenue account includes a

Identify which of the following are temporary accounts of San Migael Company. (1) Owner's Capital (2) Owner's Drawings (3) Equipment (4) Accumulated Depreciation (5) Depreciation Expense

The trial balances of Orton Company follow with the accounts arranged in alphabetic order. Analyze the data and prepare (a) the adjusting entries and (b) the closing entries made by Orton Company. Trial Balances Unadiusted Adjusted Post-Closing Accounts Payable \ 10,000 \ 10,000 \ 10,000 Accounts Receivable 2,200 2,200 2,200 Accumulated Depreciation-Equipment 13,000 17,000 17,000 Insurance Expense 0 16,300 0 Cash 37,000 37,000 37,000 Depreciation Expense 0 4,000 0 Equipment 75,000 75,000 75,000 Owner's Capital 82,200 82,200 93,400 Owner's Drawings 11,000 11,000 0 Prepaid insurance 17,800 1,500 1,500 Prepaid Rent 15,000 11,000 11,000 Rent Expense 0 4,000 0 Service Revenue 96,000 96,000 0 Supplies 3,200 700 700 Supplies Expense 2,000 4,500 0 Salaries and Wages Expense 38,000 45,000 0 Salaries and Wages Payable 0 7,000 7,000

Closing entries are journalized and posted

The balance of the salaries and wages expense account will appear in the income statement credit column of a worksheet.

The information for preparing a trial balance on a worksheet is obtained from

The adjustments entered in the adjustments columns of a worksheet are

If a worksheet is used, financial statements can be prepared before adjusting entries are journalized.