Exam 4: The Accounting Cycle

The balance sheet accounts are referred to as real or permanent accounts.

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Stockholders' equity is

The closing process is sometimes referred to as closing the books.

The dividends account is a permanent account.

A summary of selected ledger accounts appears below for Solomon's Electrical Services for the current calendar year-end. The balance in retained earnings that will appear on the financial statements is

The following accounts were taken from the Adjusted Trial Balance columns of the end-of-period spreadsheet for April 30, for Finnegan Co.: Prepare an income statement.

Kirk Enterprises offers rug cleaning services to business clients. Below is the trial balance for Kirk Enterprises, which was prepared on the end-of-period spreadsheet for the year ended July 31.​ REQUIRED: Enter the adjustment data in the work sheet for the transactions shown below and place the balances in the Adjusted Trial Balance columns.a) Depreciation expense, $1,000 b) Wages accrued, but not paid, $2,000.c) Supplies on hand, $8,000.d) Of the unearned revenue, 75% has been earned.e) Unexpired insurance at July 31, $9,000.​

The end-of-period spreadsheet for the current year for Jamal Company shows Balance Sheet columns with a debit total of $630,430 and a credit total of $614,210. This is before the amount for net income or net loss has been included. In preparing the income statement from the end-of-period spreadsheet, what is the amount of net income or net loss?

Alpha Company has current assets of $74,524, total assets of $203,310, total net income of $67,913, current liabilities of $60,100, and total liabilities of $150,600.​ What is Alpha Company's working capital?

The accounting cycle requires three trial balances be done. In what order should they be prepared?

The trial balance prepared after all the closing entries have been posted is called a pre-closing trial balance.

Astin Company has current assets of $82,530, total assets of $242,050, total net income of $58,240, current liabilities of $72,120, and total liabilities of $205,300. Astin Company's current ratio is

The following adjusted trial balance is the result of the adjustments made at the end of the month of July for Ladonna Douglas Corporation. Utilize these adjusted values to perform the closing entries for Ladonna Douglas Corporation.​

List and describe the purpose of the two closing entries.

The balances of the equity accounts from the Adjusted Trial Balance of the end-of-period spreadsheet are extended to the statement of stockholders' equity columns.

All income statement accounts will be closed at the end of the period.

A business's current assets divided by its current liabilities is equal to its

The following adjusted trial balance is the result of the adjustments made at the end of the month of March for Martin Corporation. Use these adjusted values to journalize the closing entries for Martin Corporation.​

When accounts do not appear on the unadjusted trial balance but are needed to post adjustments, they are simply added to the account title column.