Deck 4: Completing the Accounting Cycle

Question 1

Net loss appears on the worksheet:

A)in the income statement credit column and balance sheet debit column.
B)only in the income statement credit column.
C)in the income statement debit column and balance sheet credit column.
D)only in the balance sheet debit column.

Answer 1

A

Question 2

All of the following are listed on a worksheet except:

A)a debit and credit column for a statement of owner's equity.
B)a debit and credit column for an income statement.
C)a debit and credit column for a balance sheet.
D)a debit and credit column for adjustments.

Answer 2

A

Question 3

The worksheet is used only for accounts that are adjusted.

Answer 3

False

Question 4

If the unearned service revenue account had an unadjusted normal balance of $4,800, and an adjustment was made debiting the account for $1,500, the account would appear on the adjusted trial balance of the worksheet as a:

A)$4,800 debit.
B)$6,300 credit.
C)$3,300 credit.
D)$3,300 debit.

Question 5

The unadjusted trial balance columns of a worksheet contain the account balances that appear on the financial statements.

Question 6

The worksheet is the financial statement that must be prepared before all of the others.

Question 7

On a worksheet, the income statement debit column equals $190,800 and the income statement credit column equals $195,600. From this data, it can be determined that:

A)the company had a net loss of $4,800 added to the income statement credit column.
B)the company had a net income of $4,800 added to the income statement debit column.
C)the company had a net loss of $4,800 added to the income statement debit column.
D)the company had a net income of $4,800 added to the income statement credit column.

Question 8

On the worksheet, the difference between the balance sheet debit column and the balance sheet credit column represents the net income or net loss.

Question 9

Salary expense has a balance of $65,400 in the trial balance debit column of a worksheet. The adjustments credit column contains a $500 credit to salary payable. The adjusted trial balance column will show:

A)salary expense with a debit balance of $64,900.
B)salary expense with a debit balance of $65,400.
C)salary expense with a debit balance of $65,900.
D)salary payable with a credit balance of $65,900.

Question 10

Net income appears on the worksheet:

A)only in the balance sheet credit column.
B)only in the income statement credit column.
C)in the income statement debit column and balance sheet debit column.
D)in the income statement debit column and balance sheet credit column.

Question 11

Interest expense on a worksheet's trial balance debit column has a $3,400 balance and a $4,000 balance on the worksheet's income statement debit column. The difference is due to:

A)an entry in the adjustments credit column for $600 to interest expense.
B)an entry in the adjustments debit column for $4,000 to interest expense.
C)an entry in the adjustments credit column for $4,000 to interest expense.
D)an entry in the adjustments credit column for $600 to interest payable.

Question 12

On a worksheet, the sum of the income statement debit column exceeds the sum of the income statement credit column. This indicates the company generated a net loss during the current period.

Question 13

A worksheet is a:

A)formal document shown with a company's annual report.
B)formal document required by the Canada Revenue Agency.
C)formal document required by creditors.
D)multicolumn document used by accountants to aid in the preparation of the financial statements.

Question 14

After all the account balances have been extended to the balance sheet columns of the worksheet, the totals of the debit and credit columns are $35,350 and $38,750, respectively. It can be concluded the company has a:

A)net income of $3,400.
B)net loss of $3,400.
C)$74,100 net loss.
D)$74,100 net income.

Question 15

Which of the following appears in the income statement credit column of a worksheet?

A)service revenue
B)income summary
C)owner withdrawals
D)accounts receivable

Question 16

The prepaid rent account has a balance that is $400 less in the worksheet's balance sheet debit column than in the worksheet's trial balance debit column. This would be the result of a:

A)$400 entry to prepaid rent in the worksheet's adjustments debit column.
B)$400 entry to prepaid rent in the worksheet's adjustments credit column.
C)$400 entry to rent expense in the worksheet's adjustments credit column.
D)mistake in cross-adding the worksheet.

Question 17

All of the following statements regarding a worksheet are true except:

A)it provides an orderly way to summarize the data for the financial statements.
B)it is a multicolumn document, which helps move data from the trial balance to the financial statements.
C)it replaces the adjusting entries in the general journal.
D)it aids the closing process by listing the adjusted balance of all accounts.

Question 18

Which of the following appears in the balance sheet debit column of a worksheet?

A)service revenue
B)income summary
C)owner withdrawals
D)accounts payable

Question 19

On a worksheet, the sum of the income statement debit column exceeds the sum of the income statement credit column. This indicates the company generated a net income during the current period.

Question 20

The income statement debit column exceeds the income statement credit column on a worksheet. This indicates:

A)a net income for the company.
B)a net loss for the company.
C)that mistakes were made in the preparation of the worksheet.
D)the owner's capital account increased during the period.

Question 21

Table 4-1 $$\begin{array}{l}\text { Post Closing Trial Ba lance }\\\begin{array} { l r } \text { Red Brown, Capital } & \$ 154,900 \\\text { Cash } & 35,200 \\\text { Accounts receivable } & 10,900 \\\text { Accounts payable } & 3,500 \\\text { Unearned service revenue } & 6,850 \\\text { Supplies } & 1,200 \\\text { Equipment } & 110,600 \\\text { Land } & 15,400 \\\text { Accumulated amortization } & ? ? ?\end{array}\end{array}$$

-Referring to Table 4-1, calculate the total amount in the credit column of the post-closing trial balance.

A)$120,900
B)$165,250
C)$173,300
D)nil

Question 22

Accumulated amortization appears on the:

A)balance sheet debit column of a worksheet.
B)income statement credit column of a worksheet.
C)income statement debit column and balance sheet credit column of a worksheet.
D)adjusted trial balance credit column and balance sheet credit column of a worksheet.

Question 23

Given the following worksheet with the trial balance already entered, and the adjustment information, complete the worksheet. Additional information:
a)Supplies used, $4.
b)Amortization on equipment, $6.
c)Unearned service revenue earned during period, $12.
d)Accrued salaries, $3.
e)Accrued service revenue, $4.

Question 24

Given the following worksheet with the trial balance already entered, and the adjustment information, complete the worksheet. Additional information:
a)Accrued Salaries, $10.
b)Supplies used, $2.
c)Balance of unearned service revenue at end of period, $12.
d)Amortization expense, $3.
e)Accrued service revenue, $5.

Question 25

Accumulated amortization is found on the:

A)trial balance credit column and income statement debit column of a worksheet.
B)trial balance credit column, adjustments credit column, adjusted trial balance credit column, and balance sheet debit column of a worksheet.
C)trial balance credit column, adjustments credit column, adjusted trial balance credit column, and balance sheet credit column of a worksheet.
D)trial balance debit column, adjustments debit column, adjusted trial balance credit column, and income statement credit column of a worksheet.

Question 26

The worksheet is a:

A)document that helps summarize data for the financial statements.
B)required financial statement according to IFRS.
C)document that is part of the general ledger.
D)document that lists only the balance sheet accounts.

Question 27

Net loss is entered onto which columns of a worksheet?

A)income statement credit and balance sheet debit
B)income statement credit and balance sheet credit
C)adjusted trial balance credit and income statement credit
D)income statement debit and balance sheet credit

Question 28

Complete the following December 31, 2019 worksheet for Alcazar Services, using the following adjustments:
1. At year end $2,000 of work done for a client was unrecorded.
2. A count of supplies showed that there were $20 remaining.
3. Unrecorded amortization on the equipment amounted to $240.
4. Accrued salaries amounted to $180.

Question 29

After all the account balances have been extended to all columns of the worksheet, the totals of the debit and credit columns for the income statement columns are $35,350 and $38,750, respectively. It can be concluded the company has a:

A)net income of $3,400.
B)net loss of $3,400.
C)$74,100 net loss.
D)$74,100 net income.

Question 30

Given the following totals of the financial statements columns of the worksheet, determine the net income or loss for the period:

A)$5,300 net loss
B)$1,750 net income
C)$7,750 net income
D)$1,750 net loss

Question 31

The net income or loss for the period is placed on the worksheet to balance which sets of columns?

A)the adjusted trial balance and the income statement columns
B)the income statement and the balance sheet columns
C)the balance sheet and the adjusted trial balance columns
D)the unadjusted trial balance and the adjusted trial balance columns

Question 32

Using the data in Table 4-1, the balance in accumulated amortization must be:

A)$8,050.
B)$10,200.
C)$65,250.
D)nil

Question 33

An error has been made on the worksheet if:

A)the trial balance columns and the adjusted trial balance columns are not equal.
B)the income statement columns do not equal the balance sheet columns.
C)the adjusted trial balance debit column and credit column do not equal.
D)the unadjusted trial balance column is in balance.

Question 34

"Unearned fees" appears on the:

A)adjusted trial balance debit column and income statement credit column of a worksheet.
B)adjusted trial balance debit column and balance sheet credit column of a worksheet.
C)balance sheet credit column and adjusted trial balance credit column of a worksheet.
D)"Unearned fees" does not appear on a worksheet.

Question 35

After all of the account balances have been extended to the income statement columns of the worksheet, the totals of the debit and credit columns are $172,300 and $176,900, respectively. It can be concluded the company has a:

A)net loss of $4,600.
B)net income of $4,600.
C)net income of $176,900.
D)net loss of $176,900.

Question 36

Given the following totals for the financial statement columns on the worksheet, determine the net income or loss for the period:

A)$11,500 net income
B)$2,700 net income
C)$9,400 net loss
D)$2,700 net loss

Question 37

Net income is entered onto which column(s)of a worksheet?

A)adjusted trial balance debit column
B)income statement debit and balance sheet credit
C)income statement debit and balance sheet debit
D)adjusted trial balance credit and income statement credit

Question 38

If the prepaid rent account had an unadjusted normal balance of $13,400, and an adjustment was made crediting the account for $1,800, then the account would appear on the worksheet as a(n):

A)$11,600 debit balance in the balance sheet columns.
B)$1,800 credit balance in the income statement columns.
C)$11,600 credit balance in the adjusted trial balance columns.
D)$1,800 credit balance in the balance sheet columns.

Question 39

Unearned service revenue has a balance that is $2,800 less in the worksheet's balance sheet credit column than in the worksheet's trial balance credit column. From this data, it can be determined that:

A)unearned service revenue was credited for $2,800 in the adjustments columns.
B)service revenue was debited for $2,800 in the adjustments columns.
C)service revenue was credited for $2,800 in the adjustments columns.
D)unearned service revenue was credited for $2,800 in the adjusted trial balance columns.

Question 40

The worksheet includes debit and credit columns for:

A)post-closing trial balance, adjustments, income statement, balance sheet, trial balance.
B)trial balance, income statement, adjustments, balance sheet, adjusted trial balance.
C)adjustments, trial balance, post-closing trial balance, adjusted trial balance, income statement, balance sheet.
D)general ledger, trial balance, adjustments, income statement, balance sheet.

Question 41

The closing process applies to only balance sheet accounts.

Question 42

The entry to close the withdrawals account would include a credit to the income summary account.

Question 43

A credit balance in the income summary account after closing revenues and expenses indicates a net income for the current period.

Question 44

The post-closing trial balance will not include any revenue or expense accounts.

Question 45

Describe a worksheet and list the benefits to be derived from using a worksheet. Be specific.

Question 46

Closing the accounts consists of journalizing and posting entries, which will zero out all temporary accounts.

Question 47

Given the adjusted trial balance for the Stoney Creek Resort, prepare the income statement for the year ended December 31, 2019. There were no owner investments during the year.
Stoney

Question 48

Using the following worksheet for Alcazar Services, prepare a statement of owner's equity.

Question 49

Adjusting entries are:

A)a key element of accrual accounting.
B)required in both accrual and cash-basis accounting.
C)recorded only on the worksheet.
D)recorded in the general journal but not on the worksheet.

Question 50

The owner's capital account has a January 1, 2019, balance of $59,000. The owner's withdrawals account has a balance of $25,600 for the year ending December 31, 2019. The income summary account contains a debit for $20,500 and a credit for $56,900. The balance in the owner's capital account on December 31, 2019, is:

A)$69,800.
B)$3,000.
C)$33,400.
D)$84,600.

Question 51

The closing process applies to only to income statement accounts.

Question 52

The adjusting entries can be recorded in the journal as they are entered on the worksheet.

Question 53

Capital, expenses, and withdrawals are all closed to the income summary account.

Question 54

Given the adjusted trial balance for the Stoney Creek Resort, prepare the statement of owner's equity for the year ended December 31, 2019. There were no owner investments during the year.

Question 55

The capital balance found in the balance sheet credit column of a worksheet is the balance reported on the formal balance sheet.

Question 56

Using the following worksheet for Alcazar Services, prepare a non-classified balance sheet.

Question 57

Complete the following December 31, 2019 worksheet. for Alcazar Services:

Question 58

Based on the following adjusted trial balance, prepare an income statement for Summers Company for the year ended December 31, 2019.

Question 59

Given the following adjusted trial balance for Whitfield Industries, prepare a post-closing trial balance dated December 31, 2019.

Question 60

The entry to close a net loss for the period would include a debit to the income summary account.

Question 61

Revenues, expenses, and withdrawals would not appear on a(n):

A)post-closing trial balance.
B)adjusted trial balance.
C)unadjusted trial balance.
D)worksheet.

Question 62

The income summary account is closed to the:

A)cash account.
B)withdrawals account.
C)service revenue account.
D)capital account.

Question 63

Owner withdrawals for the current period are closed to:

A)the cash account.
B)the income summary account.
C)the owner's capital account.
D)the revenue accounts.

Question 64

The balance in the capital account after all closing entries have been posted is:

A)equal to net income or loss for the period.
B)the same as the balance of the account on the worksheet.
C)always more than the balance of the account on the worksheet.
D)the balance that will appear on the balance sheet.

Question 65

Net income for the current period is closed:

A)to the owner's withdrawals account.
B)to the owner's capital account.
C)to the cash account.
D)to the income summary account.

Question 66

The capital account has an ending balance of $17,000 and a beginning balance of $12,500. If withdrawals were $13,500, then the income summary account had a balance of ________ before closing.

A)$18,000 credit
B)$4,500 credit
C)$3,500 credit
D)$18,000 debit

Question 67

If income summary has a $13,500 debit balance before it is closed to the capital account, the company:

A)generated a net income of $13,500.
B)incurred a net loss of $13,500.
C)had revenues that exceeded expenses by $13,500.
D)had expenses that were $13,500 less than revenues.

Question 68

The withdrawals account is a temporary account and it must be closed.

Question 69

Which of the following accounts are closed to the owner's capital account?

A)liabilities and assets
B)the owner's withdrawals account and liabilities
C)income summary and the owner's withdrawals account
D)revenues, expenses, and liabilities

Question 70

If the amount of net income for the current period exceeds the amount of the owner's withdrawals, there will be a(n):

A)decrease in the cash account.
B)increase in the owner's capital account.
C)decrease in the owner's capital account.
D)increase in the cash account.

Question 71

Based on the following adjusted trial balance, prepare the closing entries for Tudhope Plumbing on December 31, 2019.

Question 72

Which of the following accounts will have a zero balance after the closing process is completed?

A)accumulated amortization
B)unearned service revenue
C)the owner's capital account
D)amortization expense

Question 73

Based on the following adjusted trial balance, prepare the closing entries for Dave Scott and Associates (a proprietorship)on December 31, 2019.

Question 74

The accounts that appear on a post-closing trial balance are:

A)assets, liabilities, withdrawals, and revenues.
B)revenues, expenses, and capital.
C)assets, liabilities, and expenses.
D)assets, liabilities, and capital.

Question 75

The expense and withdrawals account are closed in the income summary account by credit entries.

Question 76

Revenues total $20,200, expenses total $17,300, and the owner's withdrawals account has a balance of $12,600. What is the balance in the income summary account prior to closing net income or net loss?

A)$2,900 debit
B)$9,700 debit
C)$2,900 credit
D)$9,700 credit

Question 77

Revenues total $20,200, expenses total $17,300, and the owner's withdrawals account has a balance of $2,600. What is the balance in the income summary account after all closing entries are completed?

A)$2,600 credit
B)$2,900 debit
C)$2,900 credit
D)$0

Question 78

The income summary account had an $8,000 credit balance prior to being closed to the owner's capital account. The capital account had a $32,000 beginning balance and a $36,500 ending balance. Determine the amount of the owner's withdrawals during the current period.

A)$3,500
B)$8,500
C)$4,500
D)$2,500

Question 79

Which of the following are all temporary accounts?

A)liabilities, revenues, and expenses
B)revenues, expenses, and withdrawals
C)revenues, expenses, and capital
D)assets, revenues, and withdrawals

Question 80

Net income for O'Neal Company is $25,000 for the current year. The owner withdrew $3,000 per month for personal living expenses. The owner's capital account will show a net:

A)decrease of $25,000.
B)increase of $22,000.
C)decrease of $11,000.
D)increase of $11,000.