Exam 4: Completing the Accounting Cycle

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 withdrawals for the period is

Closing entries will

The Income Summary account

When the Balance Sheet columns of the work sheet are initially footed,they should be in balance.

A temporary account is also known as a nominal account.

Which of the following is not a temporary account?

The preparation of adjusting entries

Preparing the work sheet

The Income Statement columns of the work sheet show all the accounts that need to be closed.

The Adjusted Trial Balance columns of the work sheet are prepared by combining the Trial Balance and Adjustments columns of the work sheet.

When a work sheet is prepared

What two broad purposes do closing entries serve?

Use the numbers corresponding to the accounts below to indicate the entries for the transactions below.You may debit or credit more than one account.Dollar amounts have been omitted.The first one (x-y)has been done for you. 1.Accounts Receivable 2.Owner's Capital 3.Withdrawals 4.Cash 5.Income Summary 6.Legal Fees Earned 7.Rent Expense 8.Salaries Expense 9.Salaries Payable 10.Unearned Legal Fees x-y.To record cash invested by the owner a-b.To record the reversal of the entry that adjusted for accrued legal fees c-d.To close the Income Summary account when net income has been realized e-f.To record the closing of expense account(s) g-h.To record payment of salaries for which an adjusting entry was made a few days before.The appropriate reversing entry also was made.

The owner's Capital,Withdrawals,and Income Summary accounts for Harmon Repair Company for the accounting period are presented below in T account form after the recording and posting of closing entries: The amount of withdrawals for the period is

An amount would not appear opposite the Withdrawals account in which of the following work sheet columns?

All of the following items are associated with a purpose of the work sheet except

What does the preparation of reversing entries accomplish?

Which of the following accounts is not closed during the closing process?

Below are the adjusted accounts of Sterling Company for the month ended May 31,20x5,listed in alphabetical order: In the journal provided,prepare Sterling's closing entries.Omit explanations

The Balance Sheet columns of the work sheet show one account that needs to be closed.