Exam 4: Completing the Accounting Cycle

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

The adjusted trial balance of Williams Landscaping at December 31,2019 is as follows: There were no new capital contributions during the year.Using the information above,prepare a post-closing trial balance for Williams Landscaping (dated December 31,2019).

In an accounting cycle,which of the following steps takes place only at the end of the accounting period?

Which of the following statements concerning the worksheet is correct?

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?

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.

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

Net income (loss)is the difference between the total debits and the total credits in the income statement columns of the worksheet.

The following contains information from the records of the Becker Architecture Firm. Which of the following statements is an accurate interpretation of the current ratio of the Becker Architecture Firm? (Round your answer to two decimal places. )

Where does net income appear on a worksheet?

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 Service Revenue account is a permanent account.

The Martinez,Capital account is a permanent account.

Why are temporary accounts not included in the post-closing trial balance?

The following is the adjusted trial balance as of December 31,2019 of Martin Security Services Company: Prepare the closing entry for revenues.Omit explanation.

Olsteen Company earned revenues of $61,000 and incurred expenses of $71,000.No withdrawals were taken.The owner did not make any new capital contributions during the year.The company is a sole proprietorship.Which of the following statements is correct?

Which financial statement is prepared last?

As a part of the closing process,revenues and expenses may be closed to a temporary account called the Net Income (Loss).

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

The following information is provided for Journey Company and Mastery Company.Both companies provide training materials for electricians. a.Which company has the stronger current ratio for 2018 and 2019? Defend your answer. b.Discuss the change in current ratio for each company.