Exam 4: Completing the Accounting Cycle

The closing process applies to only balance sheet accounts.

Table 4-4 Selected accounting data as at December 31, 2019 for Huma Delivery follows: Cash \ 11,000 Accounts payable 8,000 Accounts receivable 5,500 Salary payable 6,300 Supplies 1,200 Unearned revenue 2,200 Prepaid rent 4,600 Mortgage payable (due 2023) 5,500 Equipment 22,000 J. Huma, Capital 19,900 Accum. amort.-equipment 6,100 Service revenue 29,000 Salary expense 8,000 Furniture 12,000 Accum. amort. furniture 4,000 Amortization expense 6,800 Utilities expense 4,300 Rent expense 5,600 -Referring to Table 4-4, the debt ratio is:

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

Closing the accounts consists of journalizing and posting entries, which will zero out all temporary accounts.

Table 4-4 Selected accounting data as at December 31, 2019 for Huma Delivery follows: Cash \ 11,000 Accounts payable 8,000 Accounts receivable 5,500 Salary payable 6,300 Supplies 1,200 Unearned revenue 2,200 Prepaid rent 4,600 Mortgage payable (due 2023) 5,500 Equipment 22,000 J. Huma, Capital 19,900 Accum. amort.-equipment 6,100 Service revenue 29,000 Salary expense 8,000 Furniture 12,000 Accum. amort. -furniture 4,000 Amortization expense 6,800 Utilities expense 4,300 Rent expense 5,600 -Referring to Table 4-4, current liabilities and total liabilities are:

The time span during which cash is used to acquire goods and services, and these goods and services are sold to customers, who in turn pay for their purchases with cash, is called the:

Using the following worksheet for Alcazar Services, prepare a non-classified balance sheet.

Prepaid insurance would appear on a classified balance sheet as a(n):

Given the following worksheet with the trial balance already entered, and the adjustment information, complete the worksheet. Additional information: a)Supplies used, $4. b)Amortization on equipment, $6. c)Unearned service revenue earned during period, $12. d)Accrued salaries, $3. e)Accrued service revenue, $4.

A worksheet is a:

If the unearned service revenue account had an unadjusted normal balance of $4,800, and an adjustment was made debiting the account for $1,500, the account would appear on the adjusted trial balance of the worksheet as a:

All of the following are listed on a worksheet except:

The ratio of an entity's current assets to its current liabilities is referred to as the:

On a classified balance sheet unearned revenue is classified as a current revenue.

Given the adjusted trial balance for the Stoney Creek Resort, prepare the statement of owner's equity for the year ended December 31, 2019. There were no owner investments during the year. $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text {Stoney Creek Resort}$ $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text {Adjusted Trial Balance}$ $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text {December 31, 2019}$ Debit Credit Cash \ 15,000 Accounts receivable 30,000 Supplies 3,200 Prepaid insurance 7,500 Land 40,000 Building 160,000 Accum. amortization-building \ 12,000 Equipment 75,000 Accum. amortization-equipment 8,500 Accounts payable 12,000 Salary payable 2,000 Unearned service revenue 25,000 Mortgage payable 100,000 Douglas Reycraft, Capital 60,000 Douglas Reycraft, Withdrawals 23,000 Service revenue 257,200 Salary expense 65,000 Utilities expense 24,000 Insurance expense 13,000 Amortization expense-building 9,000 Amortization expense-equipment 3,000 Supplies expense 9,000 Total

Revenues total $20,200, expenses total $17,300, and the owner's withdrawals account has a balance of $2,600. What is the balance in the income summary account after all closing entries are completed?

Current assets are assets that are expected to be converted to cash, sold, or consumed during the next 12 months or within the operating cycle if less than 12 months.

Complete the following December 31, 2019 worksheet. for Alcazar Services:

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 Furniture 49,400 -Referring to Table 4-6, the current ratio is:

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 debt ratio is: