Exam 4: Supplement - Closing Entries and the Work Sheet

The Adjustments columns of the work sheet are prepared by combining the Trial Balance and Adjusted Trial Balance columns of the work sheet.

Closing entries may be prepared by referring to the Income Statement columns and the Dividends column of the work sheet.

Which of the following accounts will have an amount in the Adjustments columns of the work sheet but probably not in the Trial Balance columns?

When a company has suffered a net loss,the net loss amount is entered on the work sheet on the

Working papers provide a written record of the work performed by the accountant.

The first step to preparing closing journal entries is to close the credit balance on the income statement to the Retained Earnings account.

When the Balance Sheet columns of the work sheet are initially footed,they should be out of balance by the amount of net income or net loss.

On the work sheet,account balances are "extended" from the

Which work sheet columns should contain "key letters"?

The work sheet is prepared

On the work sheet,under what circumstances will the last two columns be in balance after the initial footing?

The work sheet should be prepared after the formal financial statements have been prepared.

An important use of the work sheet is as an aid in the preparation of the closing journal entries.

In preparing adjustments on the work sheet,which of the following accounts most likely would be added to the Account Name column?

Despite the many uses of microcomputers,they cannot be used to prepare work sheets.

The amount extended to the Retained Earnings line in the Balance Sheet column of the work sheet is not the amount to be reflected for Retained Earnings on the balance sheet.

In the completed work sheet,which set of columns usually should be out of balance after the initial footing?

All credit balance accounts on the income statement are revenue accounts.

Omitting key letters in the work sheet would make which of the following difficult?

The final step when preparing closing entries is to close the Dividends account to the Retained Earnings account.