Exam 4: Completing the Accounting Cycle

The income statement columns in the worksheet show that debits are equal to $55,800 and credits are $67,520. What does this information mean to the accountant?

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

On the basis of the following data taken from the Adjusted Trial Balance columns of the work sheet for the year ended March 31 for Boles Athletic Company, journalize the four closing entries.

What is the major difference between the Unadjusted Trial Balance and the Adjusted Trial Balance?

The following revenue and expense account balances were taken from the Income Statement columns of the work sheet for Fraser Services Co. for December 31, 2010: Prepare an income statement.

Describe a classified balance sheet.

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

The income statement should be prepared

Indicate whether each of the following would be reported in the section of financial statements identified as (a) current asset, (b) property, plant, and equipment, (c) current liability, (d) revenue, or (e) expense:

The balances for the accounts listed below appear in the Adjusted Trial balance columns of the end-of-period spreadsheet (work sheet). Indicate whether each balance should be extended to an Income Statement column or (b) a Balance Sheet column. 1. Dobson, Capital 2. Dobson, Drawing 3. Depreciation Expense 4. Accumulated Depreciation 5. Fees earned 6. Unearned Fees 7. Supplies 8. Supplies Expense

Round-tripping is when

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

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 natural business year

Prepare an income statement and a statement of owner's equity, for the month ended August 31, 2014, from the following T-Accounts of Marley Company.

Indicate whether each of the following would be reported in the financial statements as a(n) (a) current asset, (b) current liability, (c) revenue, or (d) expense:

Accrued taxes payable are generally reported on the balance sheet as a current liability.

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.

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

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