Exam 4: Completing the Accounting Cycle

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

Capital and Drawing are reported in the owner's equity section of the balance sheet.

The following accounts were taken from the Adjusted Trial Balance columns of the work sheet for April 30, 2010 for Finnegan Co.: Accumulated Depreciation $\qquad$$\qquad~$ $32,000 Fees Earned $\qquad$$\qquad$$\qquad$$\qquad~~~~$ 78,000 Depreciation Expense $\qquad$$\qquad$$\qquad$ 7,250 Rent Expense $\qquad$$\qquad$$\qquad$$\qquad~~~$ 34,000 Prepaid Inswance $\qquad$$\qquad$$\qquad~~~~~~$ 6,000 Supplies $\qquad$$\qquad$$\qquad$$\qquad~~~~~~~~~~$ 400 Supplies Expense $\qquad$$\qquad$$\qquad$$\quad~~$ 1,800 Prepare an income statement.

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

The income summary account is also called

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

Net income appears on the work sheet in the

Journalizing and posting the adjustments and closing entries updates the ledger for the new accounting period.

Accumulated Depreciation is a permanent account.

A fiscal year

The Statement of Owner's Equity begins with the beginning balance followed by

Closing entries are dated in the journal as of

Amir Designs purchased a one-year liability insurance policy on March 1st of this year for $7,200 and recorded it as a prepaid expense. Which of the following amounts would be recorded for insurance expense during the adjusting process at the end of Amir's first month of operations on March 31st?

The usual presentation of the statement of owner's equity is (1) Beginning capital, (2) Net income or loss, (3) Drawing, (4) Owner's contributions, (5) Ending capital.

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

Unearned Fees appear on the

A summary of selected ledger accounts appear below for Alberto's Plumbing Services for the current calendar year end. Net income for the period is

Assets, liabilities, and owner's capital are real accounts and do get closed at the end of the period.

Bob Evans owns a business, Beachside Realty, that rents condominiums and furnishings. Below is the adjusted trial balance at December 31, 2010. Prepare the entry required to close the Drawing account at the end of the period.