Exam 4: Completing the Accounting Cycle

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

Use the information in the adjusted trial balance for Stockton Company to answer the questions that follow. Determine total assets.

Liabilities that will be due within one year or less and that are to be paid out of current assets are called current liabilities.

The dividends account is a temporary account.

The following are steps to the accounting cycle.Of the following,which step should be done first?

After all adjustments have been made,but before the accounts have been closed,the following balances were taken from the ledger of Ramona's Designs: Journalize the entries to close the appropriate accounts.

Each of the following transactions for Morrison Company requires an adjusting entry,which if omitted,will overstate or understate assets,liabilities,stockholders' equity,revenues,expenses,or net income.Indicate the amount and direction of the misstatement that would result if the end of period adjusting entry suggested by the transaction was omitted.Place your results in the table following the transactions and use (+)for overstate, (-)for understate,and (NE)for no effect. 1.Morrison purchased supplies on December 1 for $900.On December 31,$350 of supplies were on hand. 2.Prepaid insurance had a debit balance of $5,400 on December 1,which represented a prepayment for 2 years of insurance. 3.The unearned rent revenue account has a credit balance of $390 on December 1,which represents 3 months rent.

A fiscal year

The classified balance sheet will have liabilities divided into the following subsections

Indicate whether each of the following would be reported in the section of financial statements identified as (a)current assets, (b)property,plant,and equipment, (c)current liabilities, (d)revenues,or (e)expenses:

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?

Entries required to close the balances of the temporary accounts at the end of the period are called final entries.

Capital Stock and Dividends are reported in the stockholders' equity section of the balance sheet.

Net income is shown on the work sheet in the Income Statement Debit column and the Balance Sheet Credit column.

Which of the accounts below would be closed by posting a debit to the account?

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?

Examples of temporary accounts are supplies and prepaid expenses which are in the ledger for just a short time before they expire.

The balances of the equity accounts from the Adjusted Trial Balance columns of the work sheet are extended to the Retained Earnings Statement columns.

Beachside Realty rents condominiums and furnishings.It's adjusted trial balance at December 31,2011,is as follows: Prepare the entry required to close the dividends account at the end of the period.

Beachside Realty rents condominiums and furnishings.It's adjusted trial balance at December 31,2011,is as follows: Prepare the entry required to close the revenue accounts at the end of the period.