Exam 4: Completing the Accounting Cycle

A business entity has only one accounting cycle over its economic existence.

In preparing closing entries

On May 25 Mt. Hood Company received a $370 check from Douglas Fir for services to be performed in the future. The bookkeeper for Mt. Wood Company incorrectly debited Cash for $370 and credited Accounts Receivable for $370. The amounts have been posted to the ledger. To correct this entry the bookkeeper should:

Which of the following would not be classified a long-term liability?

The first item listed under current liabilities is usually

The most important information needed to determine if companies can pay their current obligations is the

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

After the adjusting entries are journalized and posted to the accounts in the general ledger the balance of each account should agree with the balance shown on the

The following items are taken from the financial statements of the Freight Service for the year ending December 31 2016: Accounts payable 19,000 Accounts receivable 13,000 Accumulated depreciation-equipment 26,000 Advertising expense 21,200 Cash 15,000 Owner's capital (1/1/16) 104,000 Owner's drawings 11,000 Depreciation expense 12,000 Insurance expense 3,800 Note payable, due 6/30/17 72,000 Prepaid insurance (12-month policy) 7,200 Rent expense 16,000 Salaries and wages expense 32,000 Service revenue 135,000 Supplies 5,000 Supplies expense 6,000 Equipment 210,000 What is the balance that would be reported for owner's equity at December 31 2016?

The preparation of a ______________ and ______________ entries are two optional steps in the accounting cycle.

The following items are taken from the financial statements of the Freight Service for the year ending December 31 2016: Accounts payable 19,000 Accounts receivable 13,000 Accumulated depreciation - equipment 26,000 Advertising expense 21,200 Cash 15,000 Owner's capital (1/1/16) 104,000 Owner's drawings 11,000 Depreciation expense 12,000 Equipment 210,000 Insurance expense 3,800 Note payable, due 6/30/17 72,000 Prepaid insurance (12-month policy) 7,200 Rent expense 16,000 Salaries and wages expense 32,000 Service revenue 135,000 Supplies 5,000 Supplies expense 6,000 What is total liabilities and owner's equity at December 31 2016?

The accounting cycle begins at the start of a new accounting period.

The two optional steps in the accounting cycle are preparing

In a corporation Retained Earnings is a part of owners' equity.

The worksheet for Gibler Rental Company appears below. Using the adjustment data below complete the worksheet. Add any accounts that are necessary. Adjustment data: (a) Prepaid rent expired during August $3. (b) Depreciation expense on equipment for the month of August $8. (c) Supplies on hand on August 31 amounted to $6. (d) Salaries and wages expense incurred at August 31 but not yet paid amounted to $10.

The following items are taken from the adjusted trial balance of Westley Company for the month ending July 31 2016: Accounts payable \ 2,000 Accounts receivable 3,300 Accumulated depreciation - equipment 8,000 Cash 2,600 Depreciation expense 2,000 Equipment 54,000 Owher's capital 7/1/16 52,000 Service revenue 33,000 Supplies 1,200 Prepare the current assets section of Westley's classified balance sheet.

A post-closing trial balance will show

Which of the following is an optional step in the accounting cycle?

Which of the following steps in the accounting cycle may be performed most frequently?

The following information is for Qwik Auto Supplies: Qwik Auto Supplies Balance Sheet December 31, 2016 Cash \ 45,000 Prepaid Insurance 80,000 Accounts Receivable 110,000 Inventory 140,000 Land Held for Investme 185,000 Land 250,000 Building \ 200,000 Less Accumulated Depreciation (50,000) 150,000 Trademark 140,000 Total Assets \1 ,100,000 Accounts Payable \ 140,000 Salaries and Wages Payable 60,000 Mortgage Payable 150,000 Total Liabilities 350,000 Owner's Capital 750,000 Total Liabilities and Owner's Equity \1 ,100,000 The total dollar amount of assets to be classified as investments is