Exam 4: Completing the Accounting Cycle

Emerald,Inc. ,earned revenues of $69,000 and incurred expenses of $74,000.No dividends were declared.Which of the following statements is correct?

Regarding a classified balance sheet,which of the following statements is correct?

The Office Supplies account is a temporary account.

James Service Company earned revenues of $100,000 and incurred expenses of $107,000.Prepare the entry to close the Income Summary account.

For each account listed,identify the category in which it would appear on a classified balance sheet.

Which accounts are closed at the end of the accounting period? Why is it necessary to close these accounts?

GAAP requires publicly traded companies to prepare a post-closing trial balance and publish it in their annual report.

Prepaid Rent is always classified as a long-term asset.

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

The following is the adjusted trial balance as of December 31,2016 of Mason Photography: Account Debit Credit Cash \ 1,700 Accounts Receivable 8,500 Supplies 100 Equipment 7,50 Accumulated Depreciation-Equipment \ 2,000 Accounts Payable 1,200 Salaries Payable 800 Unearned Revenue 600 Common Stock 3,400 Dividends 2,300 Service Revenue 40,000 Salaries Expense 24,000 Supplies Expense 2,300 Depreciation Expense-Equipment 1,600 Total \ 448,000 Provide the closing entry for revenues.

Patents,copyrights,and trademarks are examples of ________.

The financial statement that reports assets,liabilities,and stockholders' equity as of the last day of the period is called the ________.

Which of the following entries is necessary to close the appropriate depreciation account at the end of the year?

In the worksheet,the adjusted balance of the Service Revenue account appears in the credit column of the income statement.

Which of the following is a current asset that is expected to be converted to cash,sold,or consumed during the next year (or the normal operating cycle,if longer)?

Which of the following steps must be completed before preparing the adjusted trial balance?

Which of the following would be considered a long-term asset?

The beginning balance in the Common Stock account of a company was $14,000.The revenues and expenses were $240,000 and $100,000,respectively.During the year,the company declared and paid dividends of $7,000.The ending balance in the Retained Earnings was $133,000.(Assume that the opening balance of Retained Earnings was zero. )

The ending balances in the Common Stock and Dividend accounts are shown on the income statement columns of the worksheet.

The balances of select accounts of Stephanie,Inc.as of December 31,2016 are given below. Debit Credit Building \ 100,000 Cash 8,000 Office Supplies 800 Furniture 6,000 Prepaid Insurance 500 Accumulated Depreciation-Furniture \ 4,000 Land 33,000 Accumulated Depreciation-Building 4,700 Accounts Receivable 4,000 What amount of total long-term assets would be shown on the balance sheet?