Exam 4: Completing the Accounting Cycle

Your Business Advisor, a consulting company, uses reversing entries. On March 31, 2018, the bookkeeper journalized and posted the following adjusting entry to accrue Utilities Expense: Utilities Expense 400 Utilities Payable 400 Which of the following entries is the correct reversing entry to be prepared on April 1, 2018?

In which of the columns of a worksheet would a net loss be found?

Buildings, land, and equipment are classified as ________.

Only temporary accounts appear on the post-closing trial balance.

The following is the adjusted trial balance for Baker Services. Accounts Debit Credit Cash \ 34,000 Accounts Receivable 28,000 Prepaid Insurance 7,500 Office Supplies 3,000 Land 48,000 Building 150,000 Accumulated Depreciation-Building \ 15,500 Equipment 71,000 Accumulated Depreciation-Equipment 7,000 Accounts Payable 23,000 Salaries Payable 4,000 Unearned Revenue 29,000 Mortgage Payable 100,000 Common Stock 10,000 Retained Earnings 11,500 Dividends 22,000 Service Revenue 280,000 Salaries Expense 62,000 Depreciation Expense-Building and Equipment 5,900 Supplies Expense 14,000 Insurance Expense 14,600 Utilities Expense 20,000 Total \ 480,000 \ 480,000 After the closing entries are posted, what is the balance in Retained Earnings?

Revenues and expenses may be transferred to the ________ account before their final transfer into the Retained Earnings account.

The adjusting process zeroes out all revenue accounts and all expense accounts.

The last two columns generally found on the right side of the worksheet are the income statement columns.

Prepaid Rent in the worksheet's unadjusted trial balance column is $7,000. Prepaid Rent in the balance sheet column is $6,000. Which of the following entries would have caused this difference?

The balance sheet section of the worksheet includes the asset and liability accounts and all equity accounts, including all revenues and expenses.

Asset and liability accounts may be closed to the Income Summary account.

A worksheet can be used to help prepare adjusting entries and the financial statements.

The entries that transfer the revenue, expense, and dividends balances to the Retained Earnings account to prepare the company's books for the next period are called ________ entries.

Preparing the worksheet is a required step of the accounting cycle.

Which of the following is a permanent account?

The Service Revenue account is a temporary account.

The Dividends account is included in the income statement section of the worksheet.

Which of the following accounts will be included in a post-closing trial balance?

List the steps of the accounting cycle that take place during the period.

On December 31, 2018, Action Services, Inc. prepared the following accrual adjustment: Salaries Expense 1,000 Salaries Payable 1,000 Action uses reversing entries. Prepare the reversing entry on January 1, 2019. Omit explanation.