Exam 13: Financial Statements and Closing Procedures

The data below concerns adjustments to be made at the Tyson Company. Record the adjusting entries on page 12 of a general journal as of December 31, 2013. On the same page of the general journal, record the reversing entries as of January 1, 2014. Include descriptions. Adjustment data: (a) On October 1, 2013, the firm paid rent of $18,000 in advance for a 6-month period. (b) A total of $15,000 should be recorded as depreciation of equipment for 2013. (c) On December 31, 2013, the firm owed salaries of $12,000 that will not be paid until January 2014. (d) On December 31, 2013, the firm owed the employer's social security (6.2%) and Medicare (1.45%) taxes on all of the accrued salaries.

A reversing entry should not be made for an adjusting entry to record

Current assets are usually listed on a balance sheet in order of liquidity.

Which of the following statements is correct?

For the current fiscal year, Purchases were $166,000, Purchase Returns and Allowances were $3,000 and Freight In was $12,000. If the beginning merchandise inventory was $110,000 and the ending merchandise inventory was $75,000, the Cost of Goods Sold is:

If the Income Summary account has a credit balance after revenues, and expenses are closed, the firm had a net income for the fiscal period.

Which of the following accounts will appear on the postclosing trial balance?

Interest on notes payable would be listed in the Other Income section of a classified income statement.

Which of the following is not a section on a Classified Balance Sheet?

An adjusting entry was made for accrued salaries of $600 at the end of 2013. The adjusting entry was then reversed. To record the first payroll of 2014, which totaled $1,500, Salaries Expense should be debited for ____________________.

Teresa Davis is the owner of a convenience shop. The firm had a net income of $4,500 for the year. What accounts are debited and credited to transfer the net loss to the owner's capital account during the closing process?

Which of the following accounts is not closed?

A company reported gross profit of $85,000, total operating expenses of $40,000 and interest income of $2,500. What is the income from operations?

Which of the following statements is not correct?

Cash, items that will normally be converted to cash within one year, and items that will be used up within one year are called ____________________ assets.

A classified income statement showed net sales of $870,000, cost of goods sold of $376,000, and total operating expenses of $330,000 for the fiscal year ended December 31, 2013. 1. What was the gross profit on sales? 2. What was the net income from operations?

On a classified balance sheet, Accounts Payable would appear in the ____________________ section.

After all adjusting entries are posted, the balances of the general ledger accounts should match the amounts shown in the Adjusted Trial Balance section of the worksheet.

The adjusted trial balance data given below is from the Bennett Company's worksheet for the year ended December 31, 2013. The firm had net income of $100,000 for the year. Prepare a statement of owner's equity for the year. No additional investments were made during the period. ADJUSTED TRIAL BALANCE ACCOUNT NAME DEBIT CREDIT Ben Bennett, Capital 122,000 Ben Bennett, Drawing 30,000

The beginning capital balance shown on a statement of owner's equity is $43,000. Net income for the period is $18,000. The owner withdrew $22,000 cash from the business and made no additional investments during the period. The owner's capital balance at the end of the period is