Exam 4: Completing the Accounting Cycle

Given the adjusted trial balance for the Stoney Creek Resort, prepare the income statement for the year ended December 31, 2019. There were no owner investments during the year. Stoney $\text {Creek Resort}$ $\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}$ 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, Withdraw 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 \ 47,700 \ 46,700

The withdrawals account is a temporary account and it must be closed.

The worksheet includes debit and credit columns for:

Revenues total $20,200, expenses total $17,300, and the owner's withdrawals account has a balance of $12,600. What is the balance in the income summary account prior to closing net income or net loss?

In terms of presentation, the main difference between a balance sheet prepared under accounting standards for private enterprises (ASPE)and a statement of financial position prepared under international financial reporting standards (IFRS)might be:

The entry to close a net loss for the period would include a debit to the income summary account.

Intangible assets are classified on the balance sheet as:

Some liability accounts can have their balances split between the current liability and long-term liability sections of a balance sheet.

Which of the following accounts will have a zero balance after the closing process is completed?