Exam 4: Completing the Accounting Cycle

You have just accepted your first job out of college,which requires you to evaluate loan requests at Eastwood National Bank.The first loan request you receive is from Richard Enterprises.Richard Tracy,the CEO,is requesting $105,000 and brings you the following trial balance (or statement of accounts)for the first year of operations ended December 31. Which of the following accounts do you think might need to be adjusted before an accurate set of financial statements could be prepared?

Shores Sports rents canoes and kayaks.Below is the adjusted trial balance at December 31. ​ The entry required to close the revenue accounts at the end of the period includes a

Once the adjusting entries are posted,the adjusted trial balance is prepared to

The accumulated depreciation account is closed to the income summary account.

The majority of businesses end their fiscal year on December 31.

The classified balance sheet will show which asset subsections?

The dividends account is a temporary account.

Daniel Corporation's end-of-period spreadsheet at the end of July has $4,950 in the Balance Sheet Credit column for Accumulated Depreciation.The end-of-period spreadsheet at the end of August has $7,600 in the Balance Sheet Credit column for Accumulated Depreciation.What is the amount of the depreciation expense adjustment for the month of August?

Determine the total liabilities for the period.

Prepaid insurance is reported on the balance sheet as a

Diane's Designs purchased a one-year liability insurance policy on March 1 of a year for $8,400 and recorded it as a prepaid expense.Which of the following amounts would be recorded as insurance expense during the adjusting process at the end of Diane's first month of operations on March 31?

The usual presentation of the retained earnings statement is (1)Beginning balance,(2)Net income or loss,(3)Dividends,(4)Stockholders' contributions,(5)Ending balance.

Prepaid Insurance is an example of a current asset.

A post-closing trial balance should be prepared before the financial statements are prepared.

Common stock and dividends are reported in the stockholders' equity section of the balance sheet.

Which of the following is not true about closing entries?

Unearned Fees appear on the

The journal entry to close the Fees Earned,$750,and Rent Revenue,$175,accounts during the year-end closing process would be:

Accrued revenues are ordinarily listed on the balance sheet as current liabilities.

Since the adjustments are entered on the end-of-period spreadsheet,it is not necessary to record them in the journal or post them to the ledger.