Exam 4: Completing the Accounting Cycle

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

Griffen 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 entries for January 1,2019 and January 4,2019,assuming that reversing entries were made.Omit explanations.

The Income Summary account shows: Incame Summary Clos. 2 11,000 Clos. 13,500 1 a,What does this indicate? b.Prepare the entry to close Income Summary.Omit the explanation.The owner's name of the sole proprietorship is Marvin Johnson.

Closing entries are journalized and posted ________.

Answer the following questions regarding the current ratio: Current Ratio Question Answer What does the current ratio measure? How is the current ratio calculated? When analyzing the current ratio, what is the rule of thumb?

Revenues and expenses may be transferred to the ________ account before their final transfer into the Owner,Capital account.

The following is the adjusted trial balance as of December 31,2019 of Wilson Repair Services Company after the first year of operations: 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 the Income Summary account.Omit explanation.

The following is the adjusted trial balance as of December 31,2019 of Bright Exteriors Company after the first year of operations: Accounts Debit Credit Cash \ 3,000 Accounts Receivable 45,000 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 320,00 Salaries Expense 58,000 Depreciation Expense—Building and Equipment 6,250 Supplies Expense 15,000 Insurance Expense 14,500 Utilities Expense 23,000 Total \ 500,790 \ 500,790 Prepare the closing entry for the Income Summary account.Omit explanation.

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

At the beginning of the year,the total owner's equity of Cutting Edge Technologies Company was $90,000.The revenues and expenses were $60,000 and $40,000,respectively.The owner did not make withdrawals or capital contributions during the year.The total owner's equity at the end of the year will amount to $100,000.

The closing process helps in measuring each period's net income separately from all other periods.

Refer to the following adjusted trial balance. Accounts Debit Credit Cash \ 1,700 Accounts Receivable 8,600 Office Supplies 400 Equipment 28,100 Accumulated Depreciation-Equipment \ 2,000 Accounts Payable 1,200 Salaries Payable 950 Unearned Revenue 450 Smith, Capital 3,800 Smith, Withdrawals 1,000 Service Revenue 55,600 Salaries Expense 20,000 Supplies Expense 2,200 Depreciation Expense- Equipment 2,000 Total \ 64,000 \ 64,000 There were no new capital contributions during the year.What will the balance of the Smith,Capital Account be after the closing entries are posted?

A balance sheet that lists the assets above the liabilities and owner's equity sections is a(n)________ balance sheet.

Permanent accounts are not closed at the end of the accounting period.

Martinville Company earned revenues of $20,000 and incurred expenses of $4,000.Martinville withdrew $3,500 for personal use.What is the balance in the Income Summary account prior to closing net income or loss to the Martinville,Capital account?

The Martinez,Withdrawals account is a permanent account.

Which of the following is TRUE of a completed worksheet?

Patents,copyrights,and trademarks are examples of ________.

The Office Supplies account is a temporary account.

A list of the accounts and their balances at the end of the period,after journalizing and posting the closing entries,is called ________.