Exam 4: Completing the Accounting Cycle

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

The net income (or loss) for the period

If the total debits exceed total credits in the balance sheet columns of the worksheet owner's equity

The IASB and FASB are working on a converged statement of financial position using the headings of

Correcting entries are made

A worksheet is a mandatory form that must be prepared along with an income statement and balance sheet.

The financial statement columns of the worksheet for Booer Company as of December 31 2016 are as follows: Instructions Prepare a classified balance sheet for Booer Company.

Bill Kilmer CPA was asked by Karol King to review the accounting records and prepare the financial statements for her upholstering shop. Bill reviewed the records and found three errors. 1. Cash paid on accounts payable for $810 was recorded as a debit to Accounts Payable $180 and a credit to Cash $180. 2. The purchase of supplies on account for $400 was debited to Equipment $400 and credited to Accounts Payable $400. 3. Karol withdrew $1700 of cash and the bookkeeper debited Accounts Receivable for $170 and credited Cash $170. Instructions Prepare an analysis of each error showing the (a) incorrect entry. (b) correct entry. (c) correcting entry.

Under IFRS and under GAAP current assets are listed in IFRS GAAP A) order of liquidity order of liquidity B) reverse order of liquidity order of liquidity. C) order of liquidity reverse order of liquidity D) reverse order of liquidity reverse order of liquidity

Two permanent accounts that are part of the stockholders' equity in a corporation are ______________ and ______________.

Which one of the following is usually prepared only at the end of a company's annual accounting period?

The Income Summary account is an important account that is used

All revenue and expense accounts have been closed at the end of the calendar year for Patton Company. The Income Summary account has total debits of $530000 and total credits of $600000. As of the same date Owner's Capital has a balance of $115000 and Owner's Drawings has a balance of $48000. Instructions (a) Journalize the entries required to complete the closing of the accounts. (b) Prepare an owner's equity statement for the year ended December 31 2016.

The post-closing trial balance is entered in the first two columns of a worksheet.

The adjusted account balances of the Wellness Center at July 31 are as follows: Cash \ 16,000 Service Revenue \ 107,000 Accounts Receivable 15,000 Interest Revenue 8,500 Supplies 4,000 Depreciation Expense 25,000 Prepaid Insurance 8,000 Insurance Expense 6,000 Buildings 300,000 Salaries and Wages Expense 40,000 Accumulated Depreciation- Supplies Expense 8,000 Buildings 120,000 Utilities Expense 13,000 Accounts Payable 19,000 Owner's Capital 195,000 Owner's Drawings 11,000 Instructions Prepare the end of the period closing entries for the Wellness Center.

Preparing a worksheet involves

The step in the accounting cycle that is performed on a periodic basis (i.e. monthly quarterly) is

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 property plant and equipment is

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

Income Summary has a credit balance of $19000 in B. Browne Co. after closing revenues and expenses. The entry to close Income Summary is