Question 1

The Income Summary account

Accepted Answer

A) appears on the balance sheet. 
B) appears on the income statement. 
C) is closed to the cash account to properly state cash at the end of the period. 
D) does not appear in the financial statements. 
A) appears on the balance sheet. 
B) appears on the income statement. 
C) is closed to the cash account to properly state cash at the end of the period. 
D) does not appear in the financial statements.

Question 2

Jack Stephan,a house painter,has entered into a $2,400 contract to do a paint job that will begin in 20x5 and end in 20x6.Assuming a calendar-year accounting period,prepare Jack's entries in the following journal,using the dates and explanations provided.

Accepted Answer

The answer of Jack Stephan,a house painter,has entered into a...

Question 3

The owner's Capital,Withdrawals,and Income Summary accounts for Harmon Repair Company for the accounting period are presented below in T account form after the recording and posting of closing entries:  
-The total amount of revenue earned for the period is

Accepted Answer

A) $300. 
B) $600. 
C) $700. 
D) $900. 
A) $300. 
B) $600. 
C) $700. 
D) $900.

Question 4

When a work sheet is prepared

Accepted Answer

A) closing entries need not be entered into the journal. 
B) a trial balance need not be prepared. 
C) adjusting entries need not be entered into the journal. 
D) financial statements need not be prepared. 
A) closing entries need not be entered into the journal. 
B) a trial balance need not be prepared. 
C) adjusting entries need not be entered into the journal. 
D) financial statements need not be prepared.

Question 5

Which of the following is the most useful aid to the accountant in preparing closing entries?

Accepted Answer

A) Journal 
B) Financial statements 
C) Ledger 
D) Work sheet 
A) Journal 
B) Financial statements 
C) Ledger 
D) Work sheet

Question 6

An amount would not appear opposite the Withdrawals account in which of the following work sheet columns?

Accepted Answer

A) Trial Balance 
B) Income Statement 
C) Balance Sheet 
D) Adjusted Trial Balance 
A) Trial Balance 
B) Income Statement 
C) Balance Sheet 
D) Adjusted Trial Balance

Question 7

Closing entries result in the transfer of net income or net loss into the owner's Capital account.

Accepted Answer

A) True 
 B)False

Question 8

Powell Repair pays wages of $5,000 every other Friday ($500 per weekday).
a.In the journal provided,prepare the following entries (omit explanations)for the fiscal year ended March 31,20x5:

b.What would the April 8 entry be if no reversing entry was made? Use the journal provided.

Accepted Answer

The answer of Powell Repair pays wages of $5,000 every...

Question 9

Use the numbers corresponding to the accounts below to indicate the entries for the transactions below.You may debit or credit more than one account.Dollar amounts have been omitted.The first one (x-y)has been done for you.
1.Accounts Receivable
2.Owner's Capital
3.Withdrawals
4.Cash
5.Income Summary
6.Legal Fees Earned
7.Rent Expense
8.Salaries Expense
9.Salaries Payable
10.Unearned Legal Fees
x-y.To record cash invested by the owner
a-b.To record the reversal of the entry that adjusted for accrued legal fees
c-d.To close the Income Summary account when net income has been realized
e-f.To record the closing of expense account(s)
g-h.To record payment of salaries for which an adjusting entry was made a few days before.The appropriate reversing entry also was made.

Accepted Answer

a. 6 &ensp; b. 1
c.

Question 10

The owner's Capital,Withdrawals,and Income Summary accounts for Laurel Repair Company for the accounting period are presented below in T account form after the recording and posting of closing entries:   
-The amount of withdrawals for the period is

Accepted Answer

A) $50. 
B) $200. 
C) $400. 
D) $500. 
A) $50. 
B) $200. 
C) $400. 
D) $500.

Question 11

Nominal account balances are reduced to zero by closing entries.

Accepted Answer

A) True 
 B)False

Question 12

Reversing entries,like any other entries,are posted to the ledger.

Accepted Answer

A) True 
 B)False

Question 13

A reversing entry would never involve which of the following accounts?

Accepted Answer

A) Interest Expense 
B) Wages Payable 
C) Cash 
D) Interest Income 
A) Interest Expense 
B) Wages Payable 
C) Cash 
D) Interest Income

Question 14

An important purpose of the work sheet is to

Accepted Answer

A) accompany the financial statements in the company's annual report. 
B) aid the accountant in the daily preparation of journal entries. 
C) replace the journal when making adjusting and closing entries. 
D) check the accuracy of adjusting entries before they are entered formally into the accounting records. 
A) accompany the financial statements in the company's annual report. 
B) aid the accountant in the daily preparation of journal entries. 
C) replace the journal when making adjusting and closing entries. 
D) check the accuracy of adjusting entries before they are entered formally into the accounting records.

Question 15

The owner's Capital,Withdrawals,and Income Summary accounts for Laurel Repair Company for the accounting period are presented below in T account form after the recording and posting of closing entries:   
-The amount of net income (or net loss)for the period is

Accepted Answer

A) $400 net loss. 
B) $500 net income. 
C) $900 net income. 
D) $400 net income. 
A) $400 net loss. 
B) $500 net income. 
C) $900 net income. 
D) $400 net income.

Question 16

Indicate in the spaces below whether or not each of the following adjustments may be reversed.

Accepted Answer

The answer of Indicate in the spaces below whether or...

Question 17

The post-closing trial balance contains

Accepted Answer

A) neither real accounts nor nominal accounts. 
B) nominal accounts only. 
C) real accounts only. 
D) both real accounts and nominal accounts. 
A) neither real accounts nor nominal accounts. 
B) nominal accounts only. 
C) real accounts only. 
D) both real accounts and nominal accounts.

Question 18

The work sheet is published in the annual report along with the financial statements.

Accepted Answer

A) True 
 B)False

Question 19

Julie Robertson,an accountant,has entered into a $12,000 contract to do a consulting engagement that will begin in 20x5 and end in 20x6.Assuming a calendar-year accounting period,prepare Julie's entries in the following journal,using the dates and explanations provided.

Accepted Answer

The answer of Julie Robertson,an accountant,has entered into a $12,000...

Question 20

The primary objective of reversing entries is to

Accepted Answer

A) place the expenses for the current period in the proper accounts. 
B) simplify the bookkeeping associated with accruals from the prior period. 
C) transfer the balance of the expense accounts to the owner's Capital account and set the accounts equal to zero. 
D) correct errors. 
A) place the expenses for the current period in the proper accounts. 
B) simplify the bookkeeping associated with accruals from the prior period. 
C) transfer the balance of the expense accounts to the owner's Capital account and set the accounts equal to zero. 
D) correct errors.

Exam 4: Completing the Accounting Cycle

The Income Summary account

Jack Stephan,a house painter,has entered into a $2,400 contract to do a paint job that will begin in 20x5 and end in 20x6.Assuming a calendar-year accounting period,prepare Jack's entries in the following journal,using the dates and explanations provided.

The owner's Capital,Withdrawals,and Income Summary accounts for Harmon Repair Company for the accounting period are presented below in T account form after the recording and posting of closing entries: -The total amount of revenue earned for the period is

When a work sheet is prepared

Which of the following is the most useful aid to the accountant in preparing closing entries?

An amount would not appear opposite the Withdrawals account in which of the following work sheet columns?

Closing entries result in the transfer of net income or net loss into the owner's Capital account.

Powell Repair pays wages of $5,000 every other Friday ($500 per weekday). a.In the journal provided,prepare the following entries (omit explanations)for the fiscal year ended March 31,20x5: b.What would the April 8 entry be if no reversing entry was made? Use the journal provided.

The owner's Capital,Withdrawals,and Income Summary accounts for Laurel Repair Company for the accounting period are presented below in T account form after the recording and posting of closing entries: -The amount of withdrawals for the period is

Nominal account balances are reduced to zero by closing entries.

Reversing entries,like any other entries,are posted to the ledger.

A reversing entry would never involve which of the following accounts?

An important purpose of the work sheet is to

The owner's Capital,Withdrawals,and Income Summary accounts for Laurel Repair Company for the accounting period are presented below in T account form after the recording and posting of closing entries: -The amount of net income (or net loss)for the period is

Indicate in the spaces below whether or not each of the following adjustments may be reversed.

The post-closing trial balance contains

The work sheet is published in the annual report along with the financial statements.

Julie Robertson,an accountant,has entered into a $12,000 contract to do a consulting engagement that will begin in 20x5 and end in 20x6.Assuming a calendar-year accounting period,prepare Julie's entries in the following journal,using the dates and explanations provided.

The primary objective of reversing entries is to

Accounting Principles and the Financial Statements

Analyzing and Recording Business Transactions

Adjusting the Accounts

Foundations of Financial Reporting and the Classified Balance Sheet

Accounting for Merchandising Operations

Inventories

Cash and Internal Control

Receivables

Long -Term Assets

Current Liabilities and Fair Value Accounting

Accounting for Partnerships

Accounting for Corporations

Long Term Liabilities

The Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting and Cost Concepts

Costing Systems: Job Order Costing

Costing Systems Process Costing

Value-Based Systems: Activity-Based Costing and Lean Accounting

Cost-Volume-Profit Analysis

The Budgeting Process

Flexible Budgets and Performance Analysis

Standard Costing and Variance Analysis

Short-Run Decision Analysis and Capital Budgeting

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