Exam 5: Closing Entries and the Post-Closing Trial Balance Including Appendix

The adjusted balances for Tomas Co. are listed below. Cash, $20,000 Accounts Receivable, $2,500 Prepaid Insurance, $3,500 Equipment, $15,000 Accumulated Depreciation, $2,000 Accounts Payable, $4,000 J. Tomas, Capital, $30,000 J. Tomas, Drawing, $10,000 Income from Services, $35,000 Wages Expense, $12,000 Rent Expense, $8,000 The entry to close Income Summary would involve a

The entry to close the drawing account would involve a

Rank the steps of the accounting cycle in the proper order of preparation.

Match the terms that follow with the correct definitions. -Account classifications that are closed into the Income Summary account

The first step in the closing entries is to close the revenue account(s) into the Income Summary account.

Which of the following accounts would not be shown on the post-closing trial balance?

The Drawing account should be closed into the __________ account.

The December 31 year-end ledger balances for Quick Delivery are presented below. Instructions: Journalize the four closing entries in the proper order on page 32 of the general journal.

Closing entries are prepared

___________ are prepared during the fiscal year and cover a period of time less than twelve months.

A net loss always increases liabilities.

The last step in the closing procedure closes

Match the terms that follow with the correct definitions. -Clearing the accounts or bringing to zero balance

The Cash account is

Revenue and expenses would not appear on a(n)

Which of the following account(s) would be involved in closing entries?

Assume a company has a net income that exceeds the owner's drawing for the current year. The owner's Capital account

Match the terms that follow with the correct definitions. -The account used to record amounts taken out of the business by the owner

The owner's Drawing account for the current period is closed to the

Collins Co. uses the cash basis of accounting. Collins Co. prepays cash in April for insurance that covers only the month of May. Which of the following is true?