Question 1

Using the following partial Excel work sheet for Gold Forest Service Co.,prepare the Income Statement,the Statement of Changes in Equity,and an unclassified Balance Sheet.Assume the owner did not make any investments in the business during the year.

Accepted Answer

The answer of Using the following partial Excel work sheet...

Question 2

The closing process is a two-step process.First revenue,expense,and withdrawals are set to zero balance.Second,the process summarizes a period's assets and expenses.

Accepted Answer

A) True 
 B)False

Question 3

The following are the steps in the accounting cycle.List them in the order in which they are completed:
Completing the work sheet
Posting
Preparing an unadjusted trial balance
Journalizing
Preparing the statements
Closing the temporary accounts
Adjusting the ledger accounts
Preparing a post-closing trial balance

Accepted Answer

The answer of The following are the steps in the...

Question 4

For a partnership,the equity section is called Shareholders Equity.

Accepted Answer

A) True 
 B)False

Question 5

Current liabilities become due:

Accepted Answer

A)  Within one year. 
B)  Within the operating cycle of a business. 
C)  When bills have to be paid. 
D)  A or B,whichever is longer. 
E)  All of these answers are correct.

Question 6

When expenses exceed revenues,there is a loss and the Income Summary account has a credit balance.

Accepted Answer

A) True 
 B)False

Question 7

The unadjusted trial balance of Edward Pace,CGA is entered on the work sheet below.Complete the work sheet using the following information:
(a)Salaries earned by employees but unpaid and unrecorded,$500.
(b)An inventory of supplies showed $800 of unused supplies on hand.
(c)Estimated depreciation on equipment,$1,300.

Accepted Answer

The answer of The unadjusted trial balance of Edward Pace,CGA...

Question 8

The J.Dawson,Capital account has a credit balance of $1,200 before closing entries are made.If total revenues for the year are $65,200,total expenses $49,800,and withdrawals are $2,400,what is the ending balance in the J.Dawson,Capital account after all closing entries have been made?

Accepted Answer

A)  $5,200. 
B)  $7,600. 
C)  $14,200. 
D)  $16,600. 
E)  $23,200.

Question 9

Closing entries are designed to transfer the end-of-period balances in the revenue accounts,the expense accounts,and the withdrawals account to a balance sheet equity account.

Accepted Answer

A) True 
 B)False

Question 10

Sharp's post-closing trial balance has debit totals of $40,350 and credit totals of $40,650.The next step is to review for errors in the closing process.

Accepted Answer

A) True 
 B)False

Question 11

Prepare the necessary closing entries at December 31.
2.What is the balance of Sara's capital account after the bookkeeper posts the closing entries?

Accepted Answer

The answer of Prepare the necessary closing entries at December...

Question 12

Revenue accounts should begin each accounting period with zero balances.

Accepted Answer

A) True 
 B)False

Question 13

The work sheet is used to record transactions as they occur.

Accepted Answer

A) True 
 B)False

Question 14

The alphabetized adjusted trial balance for SimCo Electrical Outfitters at August 31,2015,is shown below.Identify how each account balance would be classified on a balance sheet given the following classification symbols:

Accepted Answer

The answer of The alphabetized adjusted trial balance for SimCo...

Question 15

Which of the following statements is true?

Accepted Answer

A)  Journalizing consists of analyzing and recording transactions in T-accounts. 
B)  Preparing a post-closing trial balance helps to prove the accuracy of the adjusting and closing procedures. 
C)  The information on the work sheet can be used in place of preparing financial statements. 
D)  By using a work sheet to prepare adjusting entries you need not post these entries to the ledger accounts. 
E)  All of these statements are true.

Question 16

Listed below are a number of accounts for Melcier Industries.Use the schedule shown below to classify each account,and indicate if it is included in the closing process and,if so,how it is closed.

Accepted Answer

The answer of Listed below are a number of accounts...

Question 17

Explain why closing entries are a necessary step in the accounting cycle.

Accepted Answer

The answer of Explain why closing entries are a necessary...

Question 18

A classified balance sheet:

Accepted Answer

A)  Measures a company's ability to pay its bills on time. 
B)  Organizes assets and liabilities into important subgroups. 
C)  Presents revenues,expenses and net income. 
D)  Shows operating,investing,and financing activities. 
E)  Shows the effect of net income and withdrawals on owner's capital.

Question 19

Prepare the necessary closing entries at December 31.
2.What is the balance of Mark's capital account after the bookkeeper posts the closing entries?

Accepted Answer

The answer of Prepare the necessary closing entries at December...

Question 20

Financial statements prepared from a work sheet offer more information than if it is not used and statements are just prepared from an adjusted trial balance.

Accepted Answer

A) True 
 B)False

Exam 4: Completing the Accounting Cycle and Classifying Accounts

Using the following partial Excel work sheet for Gold Forest Service Co.,prepare the Income Statement,the Statement of Changes in Equity,and an unclassified Balance Sheet.Assume the owner did not make any investments in the business during the year.

The closing process is a two-step process.First revenue,expense,and withdrawals are set to zero balance.Second,the process summarizes a period's assets and expenses.

For a partnership,the equity section is called Shareholders Equity.

Current liabilities become due:

When expenses exceed revenues,there is a loss and the Income Summary account has a credit balance.

The J.Dawson,Capital account has a credit balance of $1,200 before closing entries are made.If total revenues for the year are $65,200,total expenses $49,800,and withdrawals are $2,400,what is the ending balance in the J.Dawson,Capital account after all closing entries have been made?

Closing entries are designed to transfer the end-of-period balances in the revenue accounts,the expense accounts,and the withdrawals account to a balance sheet equity account.

Sharp's post-closing trial balance has debit totals of $40,350 and credit totals of $40,650.The next step is to review for errors in the closing process.

Prepare the necessary closing entries at December 31. 2.What is the balance of Sara's capital account after the bookkeeper posts the closing entries?

Revenue accounts should begin each accounting period with zero balances.

The work sheet is used to record transactions as they occur.

The alphabetized adjusted trial balance for SimCo Electrical Outfitters at August 31,2015,is shown below.Identify how each account balance would be classified on a balance sheet given the following classification symbols:

Which of the following statements is true?

Listed below are a number of accounts for Melcier Industries.Use the schedule shown below to classify each account,and indicate if it is included in the closing process and,if so,how it is closed.

Explain why closing entries are a necessary step in the accounting cycle.

A classified balance sheet:

Prepare the necessary closing entries at December 31. 2.What is the balance of Mark's capital account after the bookkeeper posts the closing entries?

Financial statements prepared from a work sheet offer more information than if it is not used and statements are just prepared from an adjusted trial balance.