Exam 4: Completing the Accounting Cycle

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 income during the current period.

Table 4-5 Selected accounting data for Dustman Consulting follows: Current assets \ 74,000 Current liabilities 44,000 Property, plant and equipment 95,000 Long-term liabilities 60,000 Total revenues 50,000 Total expenses 30,000 -Referring to Table 4-5, the debt ratio is:

Table 4-2 The ledger accounts for Alice's Rentals include the following normal balances as of December 31, 2019: Accumulated amortization \ 2,000 Cash 7,300 Equipment 15,000 Alice Normanson, Capital 9,300 Alice Normanson, Withdrawals 2,200 Prepaid rent 3,600 Accountspayable 7,800 Supplies 1,200 Unearned revenue 1,600 Notes payable (due Dec. 31,2023) 7,500 -Referring to Table 4-2, what are the total current liabilities and total liabilities for Alice's Rentals?

Table 4-6 Selected accounting data as at December 31, 2019 for Martineau Delivery follows: Cash \ 25,000 Accounts payable 33,000 Accounts receivable 34,000 Salary payable 7,500 Supplies 6,600 Unearned revenue 16,500 Prepaid rent 4,000 Mortgage payable (due 2023 ) 48,000 Equipment 52,000 C. Lexus, Capital 10,000 Accum. amort. -equipment 12,000 Service revenue 69,000 Salary expense 31,000 Accum. amort. -furniture 6,000 Fumiture 49,400 -Referring to Table 4-6, the current assets and total assets are:

Given the following totals of the financial statements columns of the worksheet, determine the net income or loss for the period:

The owner's capital account has a January 1, 2019, balance of $59,000. The owner's withdrawals account has a balance of $25,600 for the year ending December 31, 2019. The income summary account contains a debit for $20,500 and a credit for $56,900. The balance in the owner's capital account on December 31, 2019, is:

Based on the following adjusted trial balance, prepare the closing entries for Dave Scott and Associates (a proprietorship)on December 31, 2019. $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text {Dave Scott and Associates}$ $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text {Adjusted Trial Balance}$ $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text {December 31,2019}$ Deb it Credit Cash \ 13,600 Accounts receivable 2,000 Office supplies 700 Prepaid insurance 1,200 Equipment 15,600 Accum. amort.-equipment \ 3,900 Accounts payable 6,800 Salary payable 1,100 Unearned service revenue 800 Dave Scott, Capital 22,900 Dave Scott, Withdrawals 4,900 Service revenue 9,250 Advertising expense 1,400 Amort. expense-equipment 1,300 Supplies expense 500 Insurance expense 650 Utilities expense 2,900 \ 44,750

What are the potential differences in balance sheet presentation for companies reporting under ASPE versus IFRS?

If income summary has a $13,500 debit balance before it is closed to the capital account, the company:

"Unearned fees" appears on the:

Which of the following accounts are closed to the owner's capital account?

The most liquid asset is:

The worksheet is the financial statement that must be prepared before all of the others.

After all of the account balances have been extended to the income statement columns of the worksheet, the totals of the debit and credit columns are $172,300 and $176,900, respectively. It can be concluded the company has a:

Net loss appears on the worksheet:

Debts that are due to be paid within one year or within the entity's operating cycle, whichever is longer, are called:

Net income for the current period is closed:

The unadjusted trial balance columns of a worksheet contain the account balances that appear on the financial statements.

The closing process applies to only to income statement accounts.

Table 4-1 Post Closing Trial Ba lance Red Brown, Capital \ 154,900 Cash 35,200 Accounts receivable 10,900 Accounts payable 3,500 Unearned service revenue 6,850 Supplies 1,200 Equipment 110,600 Land 15,400 Accumulated amortization ??? -Referring to Table 4-1, calculate the total amount in the credit column of the post-closing trial balance.