Exam 4: Completing the Accounting Cycle

Omitting key letters in the work sheet would make which of the following difficult?

The primary objective of reversing entries is to

Using the following information and the trial balance accounts and balances in the work sheet provided,complete the work sheet. a.Expired insurance totals $8. b.Of the unearned revenue,all has been earned by the balance sheet date. c.Estimated depreciation of equipment is $6. d.Accrued wages equal $6. e.Unused supplies on hand are $4.

There is sufficient information on a post-closing trial balance to prepare an income statement.

The entry to close the Withdrawals account is

Doug Riley is the only accountant employed at Carmen Enterprises.When asked by the company president if the financial statements had been prepared yet,Doug answered that he had completed all of his work except the preparation of the statements.He added that the net income that would appear on the current income statement would be $392,180.Identify the two instances where Doug would have determined the net income before he actually prepared the financial statements.

There is sufficient information on a post-closing trial balance to prepare a balance sheet.

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

Which of the following accounts is not found in closing entries?

An amount for owner's Capital would not appear in which of the following work sheet columns?

A reversing entry

The information needed to record the adjusting entries can be copied from the work sheet.

Adele Connor is the manager of Midland Standard Equipment Company.Adele does not have an accounting degree nor a strong background in accounting.Describe to Adele how the work sheet and closing entries assist her in managing Midland Standard Equipment Company.

From the following items in the Income Statement columns of the work sheet of Lydon Industries at December 31,20x5,prepare the closing entries without explanations,assuming that a $75 withdrawal was made by the owner during the period.

In the accounting cycle,closing entries are prepared before adjusting entries.

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 total amount of expenses for the period is

Why will the Income Summary account never appear on any financial statement?

Reversing entries,like any other entries,are posted to the ledger.

Indicate in the spaces below whether each of the following entries appears to be an adjusting entry (AE),a closing entry (CE),or a reversing entry (RE).

Using the information below from the Income Statement and Balance Sheet columns of Mesquite Company's work sheet for the month ended April 30,20x5,prepare the income statement,statement of owner's equity,and balance sheet.