Exam 4: Completing the Accounting Cycle

Julie Robertson,an accountant,has entered into a $12,000 contract to do a consulting engagement that will begin in 20x5 and end in 20x6.Assuming a calendar-year accounting period,prepare Julie's entries in the following journal,using the dates and explanations provided.

Which of the following is not a permanent account?

The work sheet should be prepared after the formal financial statements have been prepared.

Accounts Receivable is closed to Income Summary as part of the closing process.

A revenue account is closed with a debit to the revenue account and a credit to Income Summary.

A reversing entry could include a

An expense account is closed with a credit to the expense account and a debit to Income Summary.

Probably the last account to be listed on a post-closing trial balance would be

Below are the adjusted accounts of Carlson Co.for the month ended May 31,20x5,listed in alphabetical order: Prepare a post-closing trial balance.

Which work sheet columns should contain "key letters"?

On the completed work sheet,which set of columns usually should be out of balance after the initial footing?

Supplies Expense is a temporary account.

On a work sheet,the balance of the owner's Capital account is its ending amount for the period.

Nominal account balances are reduced to zero by closing entries.

Discuss a worksheet by answering the following questions: a.Why is the preparation of a worksheet not required? b.When a worksheet is used,does a trial balance have to be prepared? Why or why not? c.If the Income Statement and Balance Sheet columns balance,is this proof that the financial statements are correct? Why or why not?

During the closing process,expenses are transferred to the debit side of the Income Summary account.

Below are the adjusted accounts of Carter Harper Co.for the month ended July 31,20x5,listed in alphabetical order: Prepare a post-closing trial balance.

The work sheet is a type of accountant's working paper.

Preparation of closing entries

Which of the following accounts is not closed?