Exam 4: Completing the Accounting Cycle

The following accounts were included on Retail Consultants adjusted trial balance at December 31 2016: Accounts payable 9,800 Accounts receivable 13,000 Cash 5,500 Owner's Capital 40,000 Owner's Drawings 10,000 Interest expense 3,000 Note payable, due 8/31/19 65,000 Supplies 1,500 Service revenue 37,000 Equipment 5,000 (a) What are total current assets? (b) What are total current liabilities?

What is the order in which assets are generally listed on a classified balance sheet?

Reversing entries are an optional bookkeeping procedure.

Closing entries

Truffles Company paid $860 on account to a creditor. The transaction was erroneously recorded as a debit to Cash of $680 and a credit to Accounts Receivable $680. The correcting entry is a. Accounts Payable 860 Cash 860 b. Accounts Receivable 680 Cash 680 c. Accounts Receivable 680 Accounts Payable 680 d. Accounts Receivable 680 Accounts Payable 860 Cash 1,540

A reversing entry

It is not true that current assets are assets that a company expects to

An examination of the accounts of Salvage Company for the month of June revealed the following errors after the transactions were journalized and posted. 1. A check for $950 from S. Wilde a customer on account was debited to Cash $950 and credited to Service Revenue $950. 2. A payment for Advertising Expense costing $720 was debited to Utilities Expense $270 and credited to Cash $270. 3. A bill for $950 for Supplies purchased on account was debited to Equipment $590 and credited to Accounts Payable $590. Instructions Prepare correcting entries for each of the above assuming the erroneous entries are not reversed. Explain how the transaction as originally recorded affected net income for the month of June.

Correcting entries

A double rule applied to accounts in the ledger during the closing process implies that

Long-term investments would appear in the property plant and equipment section of the balance sheet.

The income statement and balance sheet columns of Beer and Nuts Company's worksheet reflect the following totals: To enter the net income (or loss) for the period into the above worksheet requires an entry to the

A worksheet can be thought of as a(n)

The subtotal net assets is used in

The account balances appearing in the adjusted trial balance columns are extended to the ______________ columns and the ______________ columns.

Both IFRS and GAAP require disclosure about

On a classified balance sheet current assets are customarily listed

Closing entries are journalized and posted

Compute the dollar amount of current assets based on the following account balances. Accounts Receivable \ 22,000 Accumulated Depreciation-Equipment 27,000 Cash 8,400 Equipment 93,000 Prepaid Rent 7,000 Short-term Investments 15,000