Exam 5: Completing the Accounting Cycle Closing and Reversing Entries

At the end of an accounting period wages expense of $190 000 is closed to the profit and loss summary account. The wages are made up of $180 000 paid in cash and accrued wages of $10 000. A reversing entry is made for accrued wages on the first day of the next accounting period. The first payment to employees for wages in the new year is $25 000. How would this payment be recorded?

If telephone expenses for the year are $7900, made up of cash payments of $7400 and accrued telephone expense of $500 what is the amount of telephone expense that is closed to the profit and loss summary account?

If a profit has been earned for the year, before the closing entries, the profit or loss summary account has a___________________ balance.

In which order do these steps in the accounting cycle occur? I Prepare closing entries II Post to the ledger III Enter business transactions in the journal IV Prepare adjusting entries V Prepare financial statements

The balance in the profit or loss summary account before it is closed represents:

The retained profits balance of The Fruit Drop Company was $40 000 on the first day of the year. Profit during the year was $20 000. Near year-end a $10 000 dividend was declared that is to be paid in the following year. Year-end retained profits are:

Which of these is not a temporary account?

Which of the following statements relating to reversing entries is correct?

King Ltd's year-end trial balance includes the following accounts. Cash Sales revenue Accounts payable Equity Interest expense Interest receivable Motor vehicles How many of these are temporary accounts?

The major purpose of a post-closing trial balance is to:

Before calculating the profit for the period, the totals of the income statement debit and credit columns on the worksheet are $60 000 and $80 000 respectively. What is the amount of the profit or loss?

The balance of the salaries expense account is $1200. Which is the correct closing general journal entry?

What is the closing entry for drawings of $25 000?

Assume that no reversing entries are made by this firm. If wages of $12 400 were accrued by it at the end of the year and the first payment of wages in the subsequent year was $110 500 how would this payment be recorded?

Closing an account means:

Entries made at the beginning of the next accounting period to reverse the effect of various adjustments, are called:

Adjusting entries prepared for interim financial statements are:

In the closing process which accounts are closed?

Closing the accounts refers to: