Exam 4: Completing the Accounting Cycle

After net income or loss is entered on the work sheet, the debit column total must equal the credit column total of the Balance Sheet columns.

Which item would appear in the Income Statement columns of the work sheet?

Reconstruct the adjusting and closing entries from the following T accounts.

The following revenue and expense account balances were taken from the Income Statement columns of the work sheet for Fraser Services Co. for the year ended December 31, 2011:

During the end-of-period processing, which of the following best describes the logical order of steps?

If the totals of the Income Statement debit and credit columns of a work sheet are $27,000 and $29,000, respectively, after all account balances have been extended, the amount of the net loss is $2,000.

Reconstruct adjusting and closing entries for the month ended September 30, 2011 from the T accounts below.

When a work sheet is complete, the adjustment columns should have

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

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

Use the information in the adjusted trial balance for Stockton Company to answer the questions that follow. Determine the Retained Earnings ending balance.

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 expense accounts at the end of the period.

A net loss appears on the work sheet in the

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

Accounts reported on the balance sheet that are carried forward from year to year are known as permanent accounts.

It is necessary to post the closing entries to the general ledger.

A net loss is shown on the work sheet in the credit columns of both the Income Statement columns and the Balance Sheet columns.

The work sheet

On March 1, a company collects revenue in advance for the next twelve months and credits a liability account. The adjusting entry at year end on the work sheet would

The following data were taken from the Balance Sheet columns of the work sheet for April 30, 2011 for Mackenzie Company: Prepare a classified balance sheet.