Exam 4: Completing the Accounting Cycle

A credit balance in the income summary account after closing revenues and expenses indicates a net income for the current period.

After all the account balances have been extended to the balance sheet columns of the worksheet, the totals of the debit and credit columns are $35,350 and $38,750, respectively. It can be concluded the company has a:

Jonathan Swift Movers had the following current ratios 2.2:1; 2.5:1; 2.8:1 for 2017, 2018, 2019 respectively. Which of the following statements most correctly depicts the change in liquidity?

After all the account balances have been extended to all columns of the worksheet, the totals of the debit and credit columns for the income statement columns are $35,350 and $38,750, respectively. It can be concluded the company has a:

If the amount of net income for the current period exceeds the amount of the owner's withdrawals, there will be a(n):

Owner withdrawals for the current period are closed to:

The prepaid rent account has a balance that is $400 less in the worksheet's balance sheet debit column than in the worksheet's trial balance debit column. This would be the result of a:

A review of the accounting records discovered that unearned rent revenue received from a client in the amount of $1,500 had been incorrectly recorded as $2,200. Which of the following journal entries will correct the ledger accounts?

The entry to close the withdrawals account would include a credit to the income summary account.

Given the following adjusted account balances in random order, prepare the closing entries for Sheer Fabrics on December 31, 2019. Cash 35,000 Suzie Sheer, Capital 85,000 Accounts payable 33,000 Service revenue 84,000 Amortization expense-building 12,000 Salary expense 29,000 Unearned service revenue 24,000 Prepaid rent 9,000 Supplies expense 6,000 Note payable 71,000 Land 65,000 Accounts receivable 32,000 Accum. amortization-building 12,000 Interest revenue 14,000 Interest payable 3,000 Suzie Sheer, Withdrawals 20,000 Rent expense 15,000 Building 95,000 Supplies 4,000 Interest expense 4,000

Net income appears on the worksheet:

The accounts that appear on a post-closing trial balance are:

The income statement debit column exceeds the income statement credit column on a worksheet. This indicates:

When a journal entry contains an error and the error is detected before posting, the entry can be corrected.

The net income or loss for the period is placed on the worksheet to balance which sets of columns?

On a worksheet, the sum of the income statement debit column exceeds the sum of the income statement credit column. This indicates the company generated a net loss during the current period.

Table 4-3 Selected accounting data for the Mariot Services follows: Current assets \ 59,000 Current liabilities 20,000 Long-term assets 70,000 Long-term liabilities 37,000 Total revenues 25,000 Total expenses 22,000 -Referring to Table 4-3, the current ratio is:

Based on the following adjusted trial balance, prepare an income statement for Summers Company for the year ended December 31, 2019. $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text {Summers Company}$ $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text {Adjusted Trial Balance}$ $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text {December 31, 2019}$ Debit Credit Cash \ 10,500 Accounts receivable 20,000 Supplies 2,700 Office fumiture 10,000 Accum. amort. -office furniture \ 4,350 Salary payable 760 Unearned service revenue 1,140 Jody Summers, Capital 12,550 Jody Summers, Withdrawals 2,800 Service revenue 40,060 Salary expense 8,360 Rent expense 2,850 Amort expense-office furn. 350 Supplies expense Total \ 58,860 \ 58,860

Given the following worksheet with the trial balance already entered, and the adjustment information, complete the worksheet. Additional information: a)Accrued Salaries, $10. b)Supplies used, $2. c)Balance of unearned service revenue at end of period, $12. d)Amortization expense, $3. e)Accrued service revenue, $5.

Net income for O'Neal Company is $25,000 for the current year. The owner withdrew $3,000 per month for personal living expenses. The owner's capital account will show a net: