Exam 4: Completing the Accounting Cycle

Montana Inc.'s fiscal year ended on December 31, 2012. The balance in the prepaid insurance account as of December 31, 2012, was $34,800 (before adjustment) and consisted of the following policies: The adjusting entry required on December 31, 2012, would be

In the course of your examination of the books and records of Andelin Company for the year ending December 31, 2012, you find the following data: Compute Andelin Company's net income for 2012 using accrual-basis accounting.

An adjusting entry to record an unrecorded liability usually includes a credit to

The notes to the financial statements tell all of the following EXCEPT

The idea that a company's life can be divided into distinct time periods so that accounting information can be reported on a timely basis is the

Unrecognized interest expense on a note is an example of a(n)

Which of the following is true about accrual-basis accounting?

Adjusting entries are

Which of the following will occur if an adjusting entry to record an unrecorded receivable is NOT made?

Exhibit 4-2 Short Company has the following income statement for 2012: -Refer to Exhibit 4-2. Given the information above, the entry to close expenses would include a

The matching principle requires that

The failure to adjust an unearned revenue that has been partially earned and was originally recorded as a credit to Unearned Revenue will usually result in an

Boudin Corporation, a calendar-year company, obtained a $15,000, one-year, 10 percent bank loan on October 31 of the current year. Interest is payable at the end of the loan term. The adjusting entry needed on December 31 is

Bay Graphics pays its employees each Friday for a five-day total workweek. The payroll is $9,000 per week. If the end of the accounting period occurs on a Wednesday, the adjusting entry to record wages payable would include a

Bay Graphics pays its employees each Friday for a five-day total workweek. The payroll is $9,000 per week. If the end of the accounting period occurs on a Wednesday, what is the adjusting entry to record wages payable?

The December 31, 2012, adjusted account balances taken from the Adjusted Trial Balance of Cajon Corporation are as follows: -Refer to Exhibit 4-3. Given the information above, after all closing entries have been made, the balance in Cajon's Retained Earnings account would be

From the following data, determine the amount of rent revenue earned during the period.

At the beginning of the period, Hann Corporation had $4,000 of supplies on hand. During the period, it purchased $1,300 of supplies and debited supplies for the same amount. At the end of the period, Hann Corporation determined that only $1,000 of supplies were still on hand. What adjusting entry should Hann Corporation make at the end of the period?

The idea that all expenses incurred in generating revenues should be recognized in the same period as those revenues is called the

Which of the following sources provides the raw material to prepare the financial statements?