Exam 13: Financial Statements and Closing Procedures

On May 1, Brown's Antiques paid $18,000 for 12 months of advance rent on its store and immediately debited the asset account Prepaid Rent for the full amount. Select the adjusting entry made on December 31, to record the amount of rent that had expired.

(Multiple Choice)

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Question 61

At the end of the year Stan Still Stationery Store had the following balances: Sales $485,000; Sales Discounts $2,540; Sales Returns and Allowances $14,280; Sales Salaries Expense $54,000. The Net Sales for the year are:

(Multiple Choice)

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Question 62

Match the description with the accounting terms.

A type of income statement where only one computation is needed to determine the net income (total revenue — total expenses = net income)

Classified financial statement

The difference between net sales and the cost of goods sold

Current assets

A format by which revenues and expenses on the income statement, and assets and liabilities on the balance sheet, are divided into groups of similar accounts and a subtotal is given for each group

Current liabilities

Correct Answer:

Verified

A type of income statement where only one computation is needed to determine the net income (total revenue — total expenses = net income)

The difference between net sales and the cost of goods sold

A format by which revenues and expenses on the income statement, and assets and liabilities on the balance sheet, are divided into groups of similar accounts and a subtotal is given for each group

A type of income statement on which several subtotals are computed before the net income is calculated

The amount of gross profit from each dollar of sales

The number of times inventory is purchased and sold during the accounting period

The ease with which an item can be converted into cash

Property that will be used in the business for longer than one year

Journal entries made to reverse the effect of certain adjusting entries involving accrued income or accrued expenses to avoid problems in recording future payments or receipts of cash in a new accounting period

A relationship between current assets and current liabilities that provides a measure of a firm's ability to pay its current debts

Assets consisting of cash, items that normally will be converted into cash within one year, or items that will be used up within one year

Debts of a business that are due more than one year in the future

Debts that must be paid within one year

(Matching)

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Question 63

Cash, items that will normally be converted to cash, and items that will be used up within one year are called ________ assets.

(Short Answer)

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Question 64

A firm had merchandise inventory of $76,000 on January 1, 2019. During the year the firm had purchases of $102,000, freight in of $1,200, purchases returns and allowances of $4,600, and purchases discounts of $2,000. The firm had merchandise inventory of $62,000 on December 31, 2019. 1. What net delivered cost of purchases was reported for the year ended December 31, 2019, on the classified income statement? 2. What was the cost of goods sold?

(Short Answer)

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Question 65

On December 31, 2019, the Income Statement section of the worksheet is shown below. The balance of Ally Logan's drawing account is $16,000. Record the necessary closing entries on page 9 of a general journal.

(Essay)

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Question 66

Jeannine Coulson is the owner of a book store. During the year she made withdrawals of cash totaling $9,000. What accounts are debited and credited to close the owner's drawing account?

(Short Answer)

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Question 67

Which of the following accounts will appear on the post-closing trial balance?

(Multiple Choice)

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Question 68

Interest on notes payable would be listed in the Other Expenses section of a classified income statement.

(True/False)

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Question 69

The data below concerns adjustments to be made at the Conner Company. Record the adjusting entries on page 12 of a general journal as of December 31, 2019. On the same page of the general journal, record the reversing entries as of January 1, 2020. Include descriptions. Adjustment data: a)On October 1, 2019, the firm paid rent of $6,000 in advance for a 6-month period. b)A total of $5,000 should be recorded as depreciation of equipment for 2019. c)On December 31, 2019, the firm owed salaries of $4,000 that will not be paid until January 2020. d)On December 31, 2019, the firm owed the employer's social security (6.2%)and Medicare (1.45%)taxes on all of the accrued salaries.

(Essay)

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Question 70

Which of the following accounts is not closed at the end of the accounting period?

(Multiple Choice)

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Question 71

The difference between net sales and the cost of goods sold is called the ________ on sales.

(Short Answer)

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Question 72

For the current fiscal year, Purchases were $187,000, Purchase Returns and Allowances were $4,200 and Freight In was $10,500. If the beginning merchandise inventory was $98,000 and the ending merchandise inventory was $103,000, the Cost of Goods Sold is:

(Multiple Choice)

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Question 73

Gross profit on sales is calculated as

(Multiple Choice)

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Question 74

The adjusted trial balance data given below is from the Bennett Company's worksheet for the year ended December 31, 2019. The firm had net income of $26,000 for the year. Prepare a statement of owner's equity for the year. No additional investments were made during the period.

(Essay)

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Question 75

Match the accounting terms with the description

Property that will be used in the business for longer than one year

Long-term liabilities

A type of income statement on which several subtotals are computed before the net income is calculated

Current liabilities

A relationship between current assets and current liabilities that provides a measure of a firm's ability to pay its current debts

Single-step income statement

Correct Answer:

Verified

Property that will be used in the business for longer than one year

A type of income statement on which several subtotals are computed before the net income is calculated

A relationship between current assets and current liabilities that provides a measure of a firm's ability to pay its current debts

Assets consisting of cash, items that normally will be converted into cash within one year, or items that will be used up within one year

A format by which revenues and expenses on the income statement, and assets and liabilities on the balance sheet, are divided into groups of similar accounts and a subtotal is given for each group

Debts that must be paid within one year

The difference between net sales and the cost of goods sold

Debts of a business that are due more than one year in the future

The ease with which an item can be converted into cash

The amount of gross profit from each dollar of sales

Journal entries made to reverse the effect of certain adjusting entries involving accrued income or accrued expenses to avoid problems in recording future payments or receipts of cash in a new accounting period

A type of income statement where only one computation is needed to determine the net income (total revenue - total expenses = net income)

The number of times inventory is purchased and sold during the accounting period

(Matching)

4.8/5

(65)

Question 76

The entry to reverse the adjusting entry for accrued payroll taxes expense includes

(Multiple Choice)

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Question 77

Use the following account balances from the adjusted trial balance columns of RB Auto's Worksheet to answer below question. - Select the closing entry that RB Auto would make at the end of the accounting period to close their revenue accounts and income statement accounts with credit balances.

(Multiple Choice)

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Question 78

Which of the following is not a selling expense:

(Multiple Choice)

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Question 79

The data below concerns adjustments to be made at the Tyson Company. Record the adjusting entries on page 12 of a general journal as of December 31, 2019. On the same page of the general journal, record the reversing entries as of January 1, 2020. Include descriptions. Adjustment data: (a)On October 1, 2019, the firm paid rent of $20,000 in advance for a 6-month period. (b)A total of $13,000 should be recorded as depreciation of equipment for 2019. (c)On December 31, 2019, the firm owed salaries of $12,000 that will not be paid until January 2020. (d)On December 31, 2019, the firm owed the employer's social security (6.2%) and Medicare (1.45%) taxes on all of the accrued salaries.

(Essay)

5.0/5

(66)

Question 80

Exam 13: Financial Statements and Closing Procedures

On May 1, Brown's Antiques paid $18,000 for 12 months of advance rent on its store and immediately debited the asset account Prepaid Rent for the full amount. Select the adjusting entry made on December 31, to record the amount of rent that had expired.

At the end of the year Stan Still Stationery Store had the following balances: Sales $485,000; Sales Discounts $2,540; Sales Returns and Allowances $14,280; Sales Salaries Expense $54,000. The Net Sales for the year are:

Cash, items that will normally be converted to cash, and items that will be used up within one year are called ________ assets.

On December 31, 2019, the Income Statement section of the worksheet is shown below. The balance of Ally Logan's drawing account is $16,000. Record the necessary closing entries on page 9 of a general journal.

Jeannine Coulson is the owner of a book store. During the year she made withdrawals of cash totaling $9,000. What accounts are debited and credited to close the owner's drawing account?

Which of the following accounts will appear on the post-closing trial balance?

Interest on notes payable would be listed in the Other Expenses section of a classified income statement.

Which of the following accounts is not closed at the end of the accounting period?

The difference between net sales and the cost of goods sold is called the ________ on sales.

For the current fiscal year, Purchases were $187,000, Purchase Returns and Allowances were $4,200 and Freight In was $10,500. If the beginning merchandise inventory was $98,000 and the ending merchandise inventory was $103,000, the Cost of Goods Sold is:

Gross profit on sales is calculated as

The adjusted trial balance data given below is from the Bennett Company's worksheet for the year ended December 31, 2019. The firm had net income of $26,000 for the year. Prepare a statement of owner's equity for the year. No additional investments were made during the period.

The entry to reverse the adjusting entry for accrued payroll taxes expense includes

Use the following account balances from the adjusted trial balance columns of RB Auto's Worksheet to answer below question. - Select the closing entry that RB Auto would make at the end of the accounting period to close their revenue accounts and income statement accounts with credit balances.

Which of the following is not a selling expense:

Accounting: The Language of Business

Analyzing Business Transactions

Analyzing Business Transactions Using T Accounts

The General Journal and the General Ledger

Adjustments and the Worksheet

Closing Entries and Teh Postclosing Trial Balance

Accounting for Sales and Accounts Receivable

Accounting for Purchases and Accounts Payable

Cash Receipts, Cash Payments, and Banking Procedures

Payroll Computations, Records, and Payment

Payroll Taxes, Deposits, and Reports

Accruals, Deferrals, and the Worksheet

Accounting Principles and Reporting Standards

Accounts Receivable and Uncollectible Accounts

Notes Payable and Notes Receivable

Merchandise Inventory

Property, Plant, and Equipment

Accounting for Partnerships

Corporations: Formation and Capital Stock Transactions

Corporate Earnings and Capital Transactions

Long-Term Bonds

Financial Statement Analysis

The Statement of Cash Flows

Departmentalized Profit and Cost Centers

Accounting for Manufacturing Activities

Job Order Cost Accounting

Process Cost Accounting

Controlling Manufacturing Costs: Standard Costs

Cost-Revenue Analysis for Decision Making

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