Exam 4: Completing the Accounting Cycle

Indicate whether each of the following would be reported in the section of financial statements identified as (a)current asset, (b)property,plant,and equipment, (c)current liability, (d)revenue,or (e)expense:

Which of the following accounts would not appear in the Balance Sheet columns of the end-of-period spreadsheet?

Since the adjustments are entered on the work sheet,it is not necessary to record them in the journal or post them to the ledger.

A post-closing trial balance contains only asset and liability accounts.

Which of the following accounts will be debited in the closing entry at the end of the year?

The closing process is sometimes referred to as closing the books.

Prepaid Insurance is an example of a current asset.

The classified balance sheet will show which liability subsections?

Closing entries are entered directly on to the work sheet.

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,a small proprietorship.Richard Tracy,the owner,is requesting $105,000 and brings you the following trial balance (or statement of accounts)for his 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?

Closing entries are dated in the journal as of

When accounts do not appear on the unadjusted trial balance but are needed to post adjustments,they are simply added to the Account Title column.

Match each journal entry that follows as one of the types of journal entries (a-c) below. -

Which one of the steps below is not aided by the preparation of the end-of-period spreadsheet?

The following adjusted trial balance is the result of the adjustments made at the end of the month of July for Ladonna Douglas Company.Utilize these adjusted values to perform the closing entries for Ladonna Douglas Company.​

Wages are $37,500 per week for a five-day workweek,ending on Friday.The last payday of the year was Friday,June 26.Determine the balance in Salaries Expense on July 1 after reversing entries have been journalized and posted to the ledger.

Current assets and current liabilities for Brayden Company are as follows:​​ The change in working capital from 20Y8 to 20Y9 indicates that Brayden will no longer be solvent.

Current assets and current liabilities for Brayden Company are as follows:​​ What is the working capital for 20Y9 and 20Y8?​

Reversing entries are recorded after adjusting entries have been recorded and before closing entries are recorded for the same period.

Working capital is the excess of the current liabilities of a business over its current assets.