Exam 3: Supplement - Closing Entries and the Work Sheet

The work sheet is prepared

The heading of a work sheet might include the line "As of December 31,20xx."

The process of crossfooting requires vertical addition and subtraction.

The work sheet should be prepared after the formal financial statements have been prepared.

Use this information from the Income Statement columns of the work sheet of Corner Laundry Service to answer the following question. $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text {Income Statement }$ Debit Credit Laundry Revenue 2,500 Wages Expense 750 Rent Expense 500 Supplies Expense 300 Insurance Expense 200 Income Taxes Expense 50 1,800 2,500 Net Income 700 2,500 2,500 The entry to close the Laundry Revenue account includes a

Omitting key letters in the work sheet would make which of the following difficult?

Which account that does not appear on the balance sheet has an amount in the Balance Sheet columns of a work sheet?

Despite the many uses of microcomputers,they cannot be used to prepare work sheets.

An important use of the work sheet is as an aid in the preparation of financial statements.

On a work sheet,the balance of Retained Earnings is its ending amount for the period.

On the work sheet,account balances are "extended" from the

Presented below are the Retained Earnings,Dividends,and Income Summary accounts for Anika's Pet Grooming Boutique,Inc.,for the year ended December 31,2010.Closing entries have been entered and posted.Prepare a statement of retained earnings.

Why would a large company probably benefit more from a work sheet than would a very small company?

From the following items in the Income Statement columns of the work sheet of Antin Corporation at December 31,2010,prepare the closing entries,assuming that a $50 dividend was paid during the period (omit explanations). $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\quad$ $\quad$$\text {Income Statement }$ Debit Credit Service Revenue 3,000 Wages Expense 1,800 Rent Exggense 600 Supplies Exgense 300 Income Taxes Expense 150 Depreciation Exgense-Building 250 3,100 3,000 Net Loss 100 3,100 3,100

An important reason to use a work sheet is to

Monty Milko is the only accountant employed at Gamma Enterprises,Inc.When asked by the company president if the financial statements had been prepared yet,Milko answered that he had completed all of his work except the preparation of the statements.He added that the net income that would appear on the current income statement would be $369,075.Identify the two instances where Milko would have learned the net income before he actually prepared the income statement.

When a company has suffered a net loss,the net loss amount is entered on the work sheet on the

The amount of Retained Earnings for the balance sheet is obtained from the

When adjusting entries are entered onto a work sheet,it is not necessary to record them in the general journal.

Use this information from the Income Statement columns of the work sheet of Corner Laundry Service to answer the following question. $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text {Income Statement }$ Debit Credit Laundry Revenue 2,500 Wages Expense 750 Rent Expense 500 Supplies Expense 300 Insurance Expense 200 Income Taxes Expense 50 1,800 2,500 Net Income 700 2,500 2,500 The entry to close Income Summary includes a