Exam 4: Completing the Accounting Cycle

Office Equipment is an example of a current asset account.

On the income statement, miscellaneous expenses are usually presented as the last item without regard to the dollar amount.

The unadjusted, adjusted, and post-closing trial balances are the three types of trial balances prepared in an accounting cycle.

Balance sheet accounts

Which of the following accounts should be closed to Income Summary at the end of the fiscal year?

The end-of-period spreadsheet (work sheet) for the current year for Jamal Company shows Balance Sheet columns with a debit total of $614,210 and a credit total of $630,430. This is before the amount for net income or net loss has been included. In preparing the income statement from work sheet, what is the amount of net income or net loss?

Prepare an income statement and a retained earnings statement for the month ended September 30, 2011, from the T accounts below of Carson Company.

If working papers are not considered part of the formal accounting records, then why are they used?

Unearned revenues that will be earned in a relatively short period of time are listed on the balance sheet as current assets.

You evaluate loan requests as part of your job at Beach Front National Bank. One loan request you received is from Surfer Dude Supplies, a small company. Tracy Roberts, the manager, is requesting $75,000 and brings you a trial balance (or Statement of Accounts) of the first year of operations ended December 31, 2010. REQUIRED: While you are willing to work with Tracy, how would you explain to him that a complete set of financial statements from his accountant would be more useful for evaluating the loan request?

Cross-referencing is useful in assuring that the debits and credits are in balance.

Unearned Fees appear on the

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

The work sheet at the end of July has $5,950 in the Balance Sheet credit column for Accumulated Depreciation. The work sheet at the end of August has $7,600 in the Balance Sheet credit column for Accumulated Depreciation. What was the amount of the depreciation expense adjustment for the month of August?

Once the adjusted trial balance is in balance, the flow of accounts will now go into the financial statements.

The end-of-period spreadsheet (work sheet) for the current year for Jamal Company shows Balance Sheet columns with a debit total of $630,430 and a credit total of $614,210. This is before the amount for net income or net loss has been included. In preparing the income statement from work sheet, what is the amount of net income or net loss?

The dividends account is closed to the income summary account.

Current assets are also called as plant assets.