Exam 4: Completing the Accounting Cycle

Finley Company End-of-Period Spreadsheet For the Year Ended December 31 Account Title Debit Credit Cash 48,000 Accounts Receivable 18,000 Supplies 6,000 Equipment 57,000 Accumulated Depr. 18,000 Accounts Payable 25,000 Wages Payable 6,000 Common Stock 30,000 Retained Earnings 3,000 Dividends 3,000 Fees Earned 155,000 Wages Expense 63,000 Rent Expense 27,000 Depreciation Expense 15,000 Totals Net Income Loss Debit Credit Debit Credit 48,000 18,000 6,000 57,000 18,000 25,000 6,000 30,000 3,000 3,000 155,000 3,000 27,000 15,000 105,000 155,000 132,000 82,000 50,000 50,000 155,000 -The entry to close the dividends account would be

Indicate whether each of the following would be reported in the financial statements as a a current asset,b property,plant,and equipment,c current liability,d revenue,or e expense:

Accrued taxes payable are generally reported on the balance sheet as a current liability.

On the work sheet,the common stock and dividends account balances are extended to the Balance Sheet columns.

After net income is entered on the end-of-period spreadsheet,the Balance Sheet Debit and Credit columns must

The balances of the equity accounts from the Adjusted Trial Balance of the work sheet are extended to the Retained Earnings Statement columns.

$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\text { Stockton Company }$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\text { Adjusted Trial Balance }$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\text { December } 31$ Cash 7,530 Accounts Receivable 2,100 Prepaid Expenses 700 Equipment 13,700 Accumulated Depreciation 1,100 Accounts Payable 1,900 Notes Payable 4,300 Common Stock 1,000 Retained Earnings 12,940 Dividends 790 Fees Earned 9,250 Wages Expense 2,500 Rent Expense 1,960 Utilities Expense 775 Depreciation Expense 250 Miscellaneous Expense 185 Totals 30,490 30,490 -Determine the net income loss for the period.

Accrued revenues are ordinarily listed on the balance sheet as current liabilities.

Kirk Enterprises offers rug cleaning services to business clients.Below is the adjustments data for the year ended July 31.Using this information along with the spreadsheet below,record the adjusting entries in proper general journal form. Adjustments: a The equipment is estimated to last for 5 years with no salvage value.The asset will be depreciated evenly over its useful life.Record one month's depreciation. b Accrued wages,$2. c Unused supplies on hand,$8. d Of the unearned revenue,75% has been earned. e Unexpired insurance remaining at the end of the month,$9.

Which of the following has steps of the accounting cycle in proper sequence some steps may be missing?

The classified balance sheet will show which asset subsections?

Which of the following accounts should be closed to Income Summary at the end of the fiscal year?

The following accounts were taken from the Adjusted Trial Balance columns of the work sheet: Accumulated Depreciation Fees Earned Depreciation Expense Insurance Expense Prepaid Insurance Supplies Supplies Expense \ 3,200 17,400 1,300 400 4,800 900 3,800 Net income for the period is

Cross-referencing is useful in assuring that the debits and credits are in balance.

Which of the following accounts ordinarily appears in the post-closing trial balance?

When preparing the statement of shareholders' equity,the beginning capital balance can always be found

Of the following steps of the accounting cycle,which step should be completed last?

The balance sheet should be prepared

Kirk Enterprises offers rug cleaning services to business clients.Below is the trial balance for Kirk Enterprises,which was prepared on the end-of-period spreadsheet work sheet for the year ended July 31. Enter the adjustment data in the work sheet for the transactions shown below and place the balances in the Adjusted Trial Balance columns. a The equipment is estimated to last for 5 years with no salvage value.The asset will be depreciated evenly over its useful life.Record one month's depreciation. b Accrued wages,$2. c Unused supplies on hand,$8. d Of the unearned revenue,75% has been earned. e Unexpired insurance remaining at the end of the month,$9.

The end-of-period spreadsheet work sheet for the current year for Jamal Company shows Balance Sheet columns with a debit total of $614,210 and a credit total of $630,430.This is before the amount for net income or net loss has been included.In preparing the income statement from the work sheet,what is the amount of net income or net loss?