Exam 13: Financial Statements and Closing Procedures

Which of the following accounts is not closed?

The data below concerns adjustments to be made at the Conner 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 $6,000 in advance for a 6-month period. (b) A total of $5,000 should be recorded as depreciation of equipment for 2013. (c) On December 31, 2013, the firm owed salaries of $4,000 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.

Each reversing entry is the exact opposite of the related ____________________ entry.

The balance sheet is arranged in a ____________________ format if assets and liabilities are divided into groups of similar accounts and a subtotal is given for each group.

The Income Summary credit amount appearing in the Income Statement section of the worksheet is included in the combined entry to close the revenue and other accounts with credit balances.

The total of the operating expenses for the period is deducted from the gross profit on sales to determine the net income or net loss from operations.

An income statement that has one total for all revenues and one total for all expenses is known as a

The adjusted trial balance data given below is from the Morgan Company's worksheet for the year ended December 31, 2014. Prepare a classified income statement for the year ended December 31, 2014. The expense accounts numbered 611-615 represent selling expenses, and those numbered 621-631 represent general and administrative expenses. ADJUSTED TRIAL BALANCE ACCT. NO. ACCOUNT NAME DEBIT CREDIT 399 Income Summary 62,000 57,000 401 Sales 250,000 451 Sales Returns and Allowances 4,500 491 Interest Income 750 501 Purchases 125,000 502 Freight In 3,000 503 Purchases Returns and Allowances 1,600 504 Purchases Discounts 1,900 611 Sales Salaries Expense 59,000 613 Advertising Expense 2,100 615 Travel Expense 11,500 621 Office Salaries Expense 18,300 623 Office Supplies Expense 750 625 Utilities Expense 4,500 627 Payroll Taxes Expense 1,500 629 Uncollectible Accounts Expense 1,350 631 Depreciation Expense - Office Equipment 550 691 Interest Expense 1,600

Interest Expense is classified as a(n):

On December 31, 2013, the Income Statement section of the worksheet is shown below. The balance of Ally Logan's drawing account is $16,000. Record the necessary closing entries on page 9 of a general journal. INCOME STATEMENT COLUMNS ACCOUNT NAME DEBIT CREDIT Income Summary 47,000 53,000 Sales 170,000 Sales Returns and Allowances 4,500 Interest Income 600 Purchases 71,000 Freight In 2,300 Purchases Returns and Allowances 1,300 Purchases Discounts 1,900 Sales Salaries Expense 37,000 Office Salaries Expense 18,500 Office Supplies Expense 700 Utilities Expense 3,500 Payroll Taxes Expense 1,100 Uncollectible Accounts Expense 1,200 Depr. Expense - Office Equipment 600 Totals 187,400 226,800 Net Income

At the end of the year Stan Still Stationery Store had the following balances: Sales $580,000; Sales Discounts $2,540; Sales Returns and Allowances $14,280; Sales Salaries Expense $60,000. The Net Sales for the year are:

In the general journal, reversing entries are dated as of

The balance of the Sales Returns and Allowances account is reported as a selling expense in Operating Expenses section of a multiple-step income statement.

Each balance appearing in the ____________________ section of the worksheet is closed into the Income Summary account.

Adjusting entries in the general journal do not require detailed explanations since the information about the entries is listed on the worksheet.

Prepaid expenses appear in the

If a firm experiences a net loss, this amount is placed in parentheses on the income statement.

Inventory turnover is calculated by

The adjusted trial balance data given below is from the Saugatuck Craft's worksheet for the year ended December 31, 2013. The firm had a net loss of $30,000 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 Sally Saugatuck, Capital 52,000 Sally Saugatuck, Drawing 3,000

Which of the following is not a selling expense?