Exam 4: The Accounting Cycle

The income statement should be prepared

After all of the account balances have been extended to the Income Statement columns of the end-of-period spreadsheet, the totals of the Debit and Credit columns are $77,500 and $83,900, respectively. What is the amount of the net income or net loss for the period?

A net loss is shown on the end-of-period spreadsheet in the credit columns of both the Income Statement columns and the Balance Sheet columns.

Of the following steps of the accounting cycle, which step should be completed last?

Match each journal entry that follows with one of the types of journal entries (a-c) below. -Utilities Expense 430 Cash 430 A)Journal entries B)Adjusting journal entries C)Closing journal entries

Net income is shown on the end-of-period spreadsheet in the Income Statement debit column and the Balance Sheet credit column.

The journal entry to close the Fees Earned, $750, and Rent Revenue, $175, accounts during the year-end closing process would involve:

If an adjusting entry is made on the last day of the current accounting period by debiting Wages Expense and crediting Wages Payable for accrued wages earned but not yet paid, a reversing entry on the first day of the next accounting period will

Explain how net income or loss is determined by using the end-of-period spreadsheets.

Which of the items below does not appear on the end-of-period spreadsheet?

Which of the following is true of the first closing entry?

Beachside Realty rents condominiums and furnishings. Below is the company's adjusted trial balance on December 31. Explain the first step of the closing process using Beachside Realty's adjusted trial balance.

Daniel Corporation's end-of-period spreadsheet at the end of July has $4,950 in the Balance Sheet Credit column for Accumulated Depreciation. The end-of-period spreadsheet at the end of August has $7,600 in the Balance Sheet Credit column for Accumulated Depreciation. What is the amount of the depreciation expense adjustment for the month of August?

Common stock and dividends are reported in the stockholders' equity section of the balance sheet.

Closing entries

Zeta Company has 12 workers who each earn $15 per hour and generally work a 40-hour workweek, although at times overtime work is required, for which workers are paid 1.5 times their regular hourly wage. Zeta pays wages in cash on Friday of each week for work performed that week. Zeta's Wages Expense ledger account for May is shown below.​ During the period May 27 through June 2, Zeta's workers worked a regular 40-hour week. 1. If Zeta Company uses reversing entries, journalize the entry made when payroll is paid in cash on June 2, assuming that appropriate reversing entry(ies) have been made at the beginning of June. You may omit posting references. 2. If Zeta Company does not use reversing entries, journalize the entry made when payroll is paid in cash on June 2. You may omit posting references.

The ending balance of retained earnings is

The end-of-period spreadsheet is a tool that accountants can use to summarize adjusting entries and the account balances for the financial statements.

The unadjusted, adjusted, and final trial balances are prepared during the accounting cycle of a period.

Assets, liabilities, and stockholders' equity accounts are real accounts and do not get closed at the end of the period.