Exam 4: Completing the Accounting Cycle

A lawyer collected $710 of legal fees in advance. He erroneously debited Cash for $170 and credited Accounts Receivable for $170. The correcting entry is

The income statement and balance sheet columns of Iron and Wine Company's worksheet reflect the following totals: The net income (or loss) for the period is

Current liabilities

A correcting entry

The operating cycle of a company is the average time required to collect the receivables resulting from producing revenues.

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2018: Accounts payable 18,000 Accounts receivable 11,000 Accumulated depreciation - equipment 28,000 Advertising expense 21,000 Cash 15,000 Common stock 42,000 Dividends 14,000 Depreciation expense 12,000 Equipment 210,000 Insurance expense 3,000 Note payable, due 6/30/19 70,000 Prepaid insurance (12-month policy) 6,000 Rent expense 17,000 Retained earnings (1/1/18) 60,000 Salaries and wages expense 32,000 Service revenue 133,000 Supplies 4,000 Supplies expense 6,000 What is total liabilities and stockholders' equity at December 31, 2018?

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2018: Accounts payable 18,000 Accounts receivable 11,000 Accumulated depreciation - equipment 28,000 Advertising expense 21,000 Cash 15,000 Common stock 42,000 Dividends 14,000 Depreciation expense 12,000 Insurance expense 3,000 Note payable, due 6/30/19 70,000 Prepaid insurance (12-month policy) 6,000 Rent expense 17,000 Retained earnings (1/1/18) 60,000 Salaries and wages expense 32,000 Service revenue 133,000 Supplies 4,000 Supplies expense 6,000 Equipment 210,000 What are total current liabilities at December 31, 2018?

All of the following statements about the post-closing trial balance are correct except it

If Income Summary has a credit balance after revenues and expenses have been closed into it, the closing entry for Income Summary will include a

Closing entries are journalized and posted

Liabilities are generally classified as either ______________ or ______________ on a classified balance sheet.

The following accounts were included on Aeroplane Consultants adjusted trial balance at December 31, 2018: (a) What are total current assets? (b) What are total current liabilities?

The adjusted account balances of the Fitness Center at July 31 are as follows: Instructions Prepare the end of the period closing entries for the Fitness Center.

The heading for a post-closing trial balance has a date line that is similar to the one found on

The income statement for the year 2018 of Fugazi Co. contains the following information: Revenues \7 0,000 Expenses: Salaries and Wages Expense \ 45,000 Rent Expense 12,000 Advertising Expense 10,000 Supplies Expense 6,000 Utilities Expense 2,500 Insurance Expense 2,000 Total expenses 77,500 Net income \7 ,500 The entry to close Income Summary to Retained Earnings includes

Which of the following companies would be least likely to use a worksheet to facilitate the adjustment process?

If total credits in the income statement columns of a worksheet exceed total debits, the business has net income.

After closing entries have been journalized and posted, all temporary accounts in the ledger should have zero balances.

The income statement for the year 2018 of Fugazi Co. contains the following information: Revenues \7 0,000 Expenses: Salaries and Wages Expense \ 45,000 Rent Expense 12,000 Advertising Expense 10,000 Supplies Expense 6,000 Utilities Expense 2,500 Insurance Expense 2,000 Total expenses 77,500 Net income \7 ,500 The entry to close the revenue account includes a

The income statement of Fezzik's Shoe Repair is as follows: On April 1, the Retained Earnings account had a balance of $12,900. During April, the company paid $3,000 in dividends. Instructions (a) Prepare closing entries at April 30. (b) Prepare a retained earnings statement for the month of April.