Exam 4: Completing the Accounting Cycle

Marcus Enterprises began in 2011 when Damien Marcus invested $8,000 in exchange for capital stock.The following is the work sheet for the company at the end of the first year in business. Marcus Enterprises Work Sheet For the Year Ended December 31,2011 Prepare an income statement,retained earnings statement,and classified balance sheet for Marcus Enterprises for the year ended December 31,2011.

Use the work sheet for Finley Company to answer the questions that follow. The entry to close expenses would be

Use the information in the adjusted trial balance for Stockton Company to answer the questions that follow. Determine the net income (loss)for the period.

The post-closing trial balance differs from the adjusted trial balance in that it

After all of the account balances have been extended to the Balance Sheet columns of the work sheet,the totals of the debit and credit columns show debits of $37,686 and the credits of $41,101.This indicates that

Current assets are also called as plant assets.

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

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

The amount of the net income for a period appears on both the income statement and the balance sheet for that period.

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 income statement should be prepared

Closing entries are entered directly on to the work sheet.

The income statement is prepared from the adjusted trial balance or the income statement columns on the work sheet.

The balance sheet should be prepared

Which of the following accounts will not be closed to Income Summary at the end of the fiscal year?

When preparing the retained earnings statement,the beginning retained earnings balance can always be found

Office Equipment is an example of a current asset account.

A fiscal year that ends when business activities have reached their lowest point is called the natural business year.

Selected ledger accounts appear below for Fulton Surveying Services for 2014. Prepare a retained earnings statement.