Exam 6: Financial Statements and the Closing Process

(Appendix)A utility bill for $315 was paid.This activity is classified as

The Income Summary account is used to

The balance in an expense account is closed to a(n)

The steps involved in accounting for all the business activities during an accounting period are known as the ____________________.

After the closing entries have been posted,which of the following accounts would still have a balance?

(Appendix)Business transactions can be classified as

Expenses on the income statement could be listed in the same order as they appear in the chart of accounts.

Assets,liabilities,and the owner's capital account are closed at the end of the accounting period.

Current assets include cash and other assets that will be converted into cash or consumed within one year or the normal operating cycle of the business,whichever is longer.

Use the adjusted trial balance below. a. For each account,open a T account,title the account,and place its balance in it. b. Prepare closing entries in general journal format. c. Post closing entries to the T accounts.Give each entry a reference letter. d. Prepare a post-closing trial balance. ? Adjusted Trial Balance Cash 26,000 Accounts Receivable 3,300 Prepaid Insurance 6,600 Supplies 1,200 Land 42,300 Equipment 5,700 Accumulated Depreciation-Equipment 5,500 Accounts Payable 5,300 Owner, Capital 73,900 Owner, Drawing 3,200 Service Fees 20,000 W7ages Expense 8.500 Supplies Expense 2,100 Utilities Expense 200 Insurance Expense 100 Depreciation Expense-Equipment 104,700 104,700