Exam 4: Completing the Accounting Cycle and Classifying Accounts

Using the following partial Excel work sheet for Gold Forest Service Co.,prepare the Income Statement,the Statement of Changes in Equity,and an unclassified Balance Sheet.Assume the owner did not make any investments in the business during the year.

The closing process is a two-step process.First revenue,expense,and withdrawals are set to zero balance.Second,the process summarizes a period's assets and expenses.

The following are the steps in the accounting cycle.List them in the order in which they are completed: Completing the work sheet Posting Preparing an unadjusted trial balance Journalizing Preparing the statements Closing the temporary accounts Adjusting the ledger accounts Preparing a post-closing trial balance

For a partnership,the equity section is called Shareholders Equity.

Current liabilities become due:

When expenses exceed revenues,there is a loss and the Income Summary account has a credit balance.

The unadjusted trial balance of Edward Pace,CGA is entered on the work sheet below.Complete the work sheet using the following information: (a)Salaries earned by employees but unpaid and unrecorded,$500. (b)An inventory of supplies showed $800 of unused supplies on hand. (c)Estimated depreciation on equipment,$1,300.

The J.Dawson,Capital account has a credit balance of $1,200 before closing entries are made.If total revenues for the year are $65,200,total expenses $49,800,and withdrawals are $2,400,what is the ending balance in the J.Dawson,Capital account after all closing entries have been made?

Closing entries are designed to transfer the end-of-period balances in the revenue accounts,the expense accounts,and the withdrawals account to a balance sheet equity account.

Sharp's post-closing trial balance has debit totals of $40,350 and credit totals of $40,650.The next step is to review for errors in the closing process.

Prepare the necessary closing entries at December 31. 2.What is the balance of Sara's capital account after the bookkeeper posts the closing entries?

Revenue accounts should begin each accounting period with zero balances.

The work sheet is used to record transactions as they occur.

The alphabetized adjusted trial balance for SimCo Electrical Outfitters at August 31,2015,is shown below.Identify how each account balance would be classified on a balance sheet given the following classification symbols:

Which of the following statements is true?

Listed below are a number of accounts for Melcier Industries.Use the schedule shown below to classify each account,and indicate if it is included in the closing process and,if so,how it is closed.

Explain why closing entries are a necessary step in the accounting cycle.

A classified balance sheet:

Prepare the necessary closing entries at December 31. 2.What is the balance of Mark's capital account after the bookkeeper posts the closing entries?

Financial statements prepared from a work sheet offer more information than if it is not used and statements are just prepared from an adjusted trial balance.