Exam 4: Completing the Accounting Cycle

The Service Revenue account is a permanent account.

The balances of select accounts of Sandra Company as of December 31,2018 are given below: Debit Credit Building \ 140,000 Cash 9,000 Office Supplies 1,200 Furniture 6,000 Prepaid Insurance 550 Accumulated Depreciation-Furniture \ 4,000 Land 31,000 Accumulated Depreciation-Building 4,000 Accounts Receivable 2,200 The insurance has been prepaid until June 30,2019.Determine the amount of total current assets reported on the balance sheet at December 31,2018.

Which of the following statements is TRUE of the accounting cycle?

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

The following is the adjusted trial balance as of December 31,2019 of Hawkins Dental Lab Company: Cash \ 14,000 Accounts Receivable 10,000 Prepaid Insurance 9,000 Office Supplies 6,200 Land 25,000 Building 100,000 Accumulated Depreciation-Building \ 42,000 Equipment 120,000 Accumulated Depreciation-Equipment 75,000 Accounts Payable 40,000 Salaries Payable 4,000 Unearned Revenue 5,000 Mortgage Payable 70,000 Hawkins, Capital 20,000 Hawkins, Withdrawals 17,500 Service Revenue 235,000 Salaries Expense 96,000 Depreciation Expense-Building and Equipment 16,300 Supplies Expense 43,000 Insurance Expense 18,500 Utilities Expense 16,000 Total \ 491,500 \ 491,50 Prepare the closing entries.Omit explanation.

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 31,2019 of Martin Security Services Company: Accounts Debit Credit Cash \ 18,000 Accounts Receivable 30,000 Prepaid Insurance 9,000 Office Supplies 3,200 Land 45,000 Building 165,000 Accumulated Depreciation-Building \ 12,000 Equipment 88,000 Accumulated Depreciation-Equipment 8,500 Accounts Payable 12,000 Salaries Payable 2,000 Unearned Revenue 25,000 Mortgage Payable 100,00 Martin, Capital 21,290 Martin, Withdrawals 25,840 Service Revenue 325,00 Salaries Expense 63,000 Depreciation Expense—Building and Equipment 6,250 Supplies Expense 15,000 Insurance Expense 14,500 Utilities Expense 23,000 Total \ 505,790 \ 505,790 Prepare the closing entry for revenues.Omit explanation.

Which of the following adjusted balances would appear in the balance sheet credit column of a worksheet?

The following is the adjusted trial balance as of December 31,2019 of Brooks Design Studio: Account Debit Credit Cash \ 1,700 Accounts Receivable 8,500 Supplies 100 Equipment 7,500 Accumulated Depreciation-Equipment \2 ,000 Accounts Payable 1,200 Salaries Payable 800 Unearned Revenue 600 Bravo, Capital 3,400 Bravo, Withdrawals 2,300 Service Revenue 40,000 Salaries Expense 24,000 Supplies Expense 2,300 Depreciation Expense-Equipment 1,600 Total \ 48,000 \ 48,000 Prepare the closing entry for expenses.Omit explanation.

A net loss from the Balance Sheet decreases Owner,Capital.

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

In the closing process,the Owner,Withdrawals account is closed to the Owner,Capital account.

Woods Company earned revenues of $12,000 and incurred expenses of $9,500.The owner,Woods,withdrew $3,000.What is the balance in the Income Summary account after closing net income or loss to the Woods,Capital account?

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

Notes Payable due within two years are classified as ________.

Which of the following statements is TRUE of the worksheet?

The ten steps of the accounting cycle are presented below.Identify the correct order of the steps by placing the numbers 1 (first step)to 10 (last step)by each description.

Which of the following is a measure of how quickly an item can be converted to cash?

The balances of select accounts of McMurray Company as of December 31,2018 are given below: Notes Payable-short-term \ 1,500 Salaries Payable 3,000 Notes Payable-long-term 23,000 Accounts Payable 3,000 Unearned Revenue 3,000 Interest Payable 2,400 The Unearned Revenue is the amount of cash received for services to be rendered in January 2019.Interest Payable will be paid on February 5,2019.What are the total long-term liabilities shown on the balance sheet at December 31,2018?

Perry Service Company had the following unadjusted balances at December 31,2018: Salaries Payable,$0; Salaries Expense,$12,000.The following transactions took place on December 31,2018: Accrued Salaries Expense,$5,000 Closed the Salaries Expense account. The following transaction took place on January 4,2019: Paid salaries of $6,000.This payment included $5,000 that was accrued on December 31,2018 and $1,000 for the first few days in January 2019. Prepare the journal entry for January 4,2019,assuming that reversing entries were not made.Omit explanation.