Exam 4: Completing the Accounting Cycle

Identify which of the following are temporary accounts of San Migael Company. (1) Owner's Capital (2) Owner's Drawings (3) Equipment (4) Accumulated Depreciation (5) Depreciation Expense

Which account listed below would be double ruled in the ledger as part of the closing process?

Bonita Arcade paid the weekly payroll on January 2 by debiting Salaries and Wages Expense for $45000. The accountant preparing the payroll entry overlooked the fact that Salaries and Wages Expense of $23000 had been accrued at year end on December 31. The correcting entry is a. Salaries and Wages Payable 23,000 Cash 23,000 b. Cash 22,000 Salaries and Wages Expense 22,000 c. Salaries and Wages Payable 23,000 Salaries and Wages Expense 23,000 d. Cash 23,000 Salaries and Wages Expense 23,000

At March 31 account balances after adjustments for Wide Screen are as follows: Account Balances Accounts (After Adjustment) Cash \ 11,000 Supplies 4,000 Equipment 50,000 Accumulated Depreciation-Equipment 12,000 Accounts Payable 5,000 Owner's, Capital 20,000 Owner's, Drawings 8,000 Ticket Revenue 59,000 Service Revenue 55,000 Advertising Expense 18,800 Supplies Expense 17,000 Depreciation Expense 4,000 Rent Expense 26,000 Salaries and Wages Expense 24,000 Utilities Expense 5,200 Instructions Prepare the closing journal entries for Wide Screen.

The account Supplies will appear in the following debit columns of the worksheet.

The following lettered items represent a classification scheme for a balance sheet and the numbered items represent accounts found on balance sheets. In the blank next to each account write the letter indicating to which category it belongs.

Indicate the proper sequence of the steps in the accounting cycle by placing numbers 1-8 in the blank spaces.

Closing entries are

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

The income statement for the year 2016 of Bugati Co. contains the following information: $\begin{array}{lr}\text { Revenues } &&\$73,000 \\\text { Expenses: } & \\\text { Salaries and Wages Expense } & \$ 43,000 \\\text { Rent Expense } &12,000 \\\text { Advertising Expense } & 11,000 \\\text { Supplies Expense } &6,000 \\\text { Utilities Expense }& 3,500\\\text { Insurance Expense }&4,000 \\\quad \text { Total expenses } &&79,500 \\\text { Net income (loss)} &&\$(6,500)\end{array}$ After all closing entries have been posted the revenue account will have a balance of

Identify which of the following accounts would appear in a post-closing trial balance. Accumulated Depreciation-Equipment Owner's Drawings Depreciation Expense Service Revenue Interest Payable Equipment

The closing entry process consists of closing

Current assets are listed in the order of liquidity.

A current asset is

Presented below is an adjusted trial balance for Shawn Company at December 31 2016. Cash \ 7,700 Accounts payable \ 10,000 Accounts receivable 20,000 Notes payable 9,000 Prepaid insurance 15,000 Accumulated depreciation- Equipment 35,000 Equipment 14,000 Depreciation expense 7,000 Service revenue 29,000 Owner's Drawings 1,500 Owner's capital 24,000 Advertising expense 1,400 Unearned service revenue 16,000 Rent expense 800 Salaries and wages expense 12,000 Insurance expense 1,600 Instructions (a) Prepare closing entries for December 31 2016. (b) Determine the balance in the Owner's Capital account after the entries have been posted.

These are selected account balances on December 31 2016. Land (location of the corporation's office building) \ 140,000 Land (held for future use) 150,000 Corporate Office Building 750,000 Inventory 200,000 Equipment 480,000 Office Furniture 150,000 Accumulated Depreciation 435,000 What is the total net amount of property plant and equipment that will appear on the balance sheet?

A post-closing trial balance will show

The process of transferring net income (or loss) for the period to Owner's Capital is accomplished by making ______________ entries.

Closing entries are necessary for

Match the items below by entering the appropriate code letter in the space provided.