Exam 4: Completing the Accounting Cycle

The Trial Balance and Adjusted Trial Balance columns of Kathy's Cleaning Company's work sheet are shown below (the adjustments column has been omitted).In the journal provided,prepare the six adjusting entries and the four closing entries for the month ended June 30,20x5.No explanations are needed.

On the work sheet,under what circumstances will the last two columns be in balance after the initial footing?

Preparing the worksheet and closing entries provide a mechanism for applying the concept of periodicity.

The balance of the Wages Expense account of Ryan Company,prior to adjustment,was $95,000.On December 31,the end of the fiscal year,an adjustment for $7,900 of accrued wages needed to be made.On January 12,wages of $56,400 were paid.Prepare the adjusting entry for wages,the entry to close the Wages Expense account,the corresponding reversing entry,and the entry to pay the wages on January 12.Omit explanations.

Which of the following is a nominal account?

The post-closing trial balance contains

Which of the following items is used in preparing the statement of owner's equity?

The amount of the Withdrawals account can be found on the work sheet.

The adjusting entries entered onto a work sheet must still be recorded in the general journal.

Powell Repair pays wages of $5,000 every other Friday ($500 per weekday). a.In the journal provided,prepare the following entries (omit explanations)for the fiscal year ended March 31,20x5: b.What would the April 8 entry be if no reversing entry was made? Use the journal provided.

Under which circumstance would one less closing entry than usual be made?

In preparing closing entries,which of the following columns of the work sheet are the most helpful?

Reversing entries are never required.

Since the balance of the Accumulated Depreciation account will appear on the asset side of the balance sheet,it is placed on the debit side of the work sheet's Balance Sheet columns.

Which of the following accounts most likely would have an amount contained in the Income Statement columns of a work sheet but not in Balance Sheet columns of work sheet?

An important purpose of the work sheet is to

The owner's Capital,Withdrawals,and Income Summary accounts for Laurel Repair Company for the accounting period are presented below in T account form after the recording and posting of closing entries: The amount of net income (or net loss)for the period is

Which of the following entries could not be a legitimate reversing entry?

The Income Summary account appears in the income statement.

Closing entries are made