Exam 4: Completing the Accounting Cycle and Classifying Accounts

Below is an alphabetical listing of General Ledger accounts with identifying numbers for Scott's Suntanning Parlour.Indicate the accounts debited and credited in each of the following transactions by placing the proper account identifying number(s)in the columns to the right of each transaction.

A work sheet can be prepared manually or with a computer spreadsheet program.

Work sheet preparation is a(n)____________ step in the accounting cycle.

Reversing entries:

Closing the temporary accounts at the end of each accounting period:

Adjusting entries are normally entered in the General Journal before they are recorded on the work sheet.

The following items appeared on a December 31 Excel work sheet.Based on the following information,what is net income for the year?

Current assets and current liabilities are expected to be used up or come due within one year or the company's operating cycle.

Calculate the current ratio in each of the following cases.

The accounting cycle refers to the steps in preparing the work sheet for users.

FastForward's post-closing trial balance has a debit total of $475,000 and a credit total of $457,000.This indicates that __________________________.

Accounts that are used to describe revenues,expenses,and owner's withdrawals,and are closed at the end of the reporting period,are:

A company had revenues of $75,000,withdrawals of $10,000 and expenses of $62,000 during an accounting period.Which of the following entries should not be journalized in the closing process?

The adjusted trial balance of Richardson Electric at May 31,2015 is as follows: Prepare the necessary closing entries at May 31.

The Unadjusted Trial Balance columns of the work sheet show the balance in the Office Supplies account at $750.The Adjustments columns show that $425 of these supplies were used during the period.The amount shown as Office Supplies in the Balance Sheet columns is:

Harley Ravidson's current assets are $400 million and its current liabilities are $250 million.Its current ratio is .63 to 1.

If,in preparing a work sheet,an adjusted trial balance amount is sorted to the wrong work sheet column,the Balance Sheet columns will balance on completing the work sheet,but with the wrong net income,if the amount sorted in error is:

Which statement is incorrect?

If all columns balance upon completion of a work sheet,you can be sure that no errors were made in preparing the work sheet.

Reversing entries are prepared to adjust accrued assets and liabilities that were created by adjusting entries at the end of the previous reporting period.