Exam 4: Completing the Accounting Cycle

Revenue accounts and expense accounts are closed to the Income summary account.

The following is the adjusted trial balance for Tuttle Photography. Account Debit Credit Cash \ 15,000 Accounts receivable 30,000 Prepaid insurance 7,500 Office supplies 3,200 Land 40,000 Building 160,000 Accumulated depreciation \ 12,000 Equipment 75,000 Accumulated depreciation 8,500 Accounts payable 12,000 Salaries payable 2,000 Unearned service revenue 25,000 Mortgage payable 100,000 R. Tuttle, capital 21,290 R. Tuttle, drawing 23,000 Service revenue Salaries expense 61,000 Depreciation expense 6,150 Supplies expense 14,040 Innsurance expense 14,000 Utilities expense 20,900 \ 469,790 \ 469,790 Using the information above,prepare a post-closing trial balance for Tuttle Photography (dated December 31,2012.)

Beginning balance in Capital is $80,000.Revenues are $60,000.Expenses are $75,000.No withdrawals were taken.The ending balance in Capital is $65,000.

Supplies is a temporary account.

Which of the following does the debt ratio measure?

Adkins Company has a current ratio of 1.0 and a debt ratio of 0.7.Wilson Company has a current ratio of 1.4 and a debt ratio of 0.5.Both companies are in the same industry.Which of the following statements is TRUE?

Below is a list of various balance sheet accounts and their balances. Debit Credit Building \ 100,000 Cash 2,000 Supplies 800 Furniture 2,600 Prepaid insurance 150 Accumulated depreciation-furniture \ 900 Inventory Land 25,000 Accumulated depreciation-building 4,800 Accounts receivable 1,500 What are the total current assets that would be shown on the balance sheet?

Please refer to the following balance sheet: How much is the debt ratio? (Round to two decimal places.)

Please refer to the worksheet below. How much was the Net income?

Under which of the following categories would Accounts payable appear?

A balance sheet prepared in the account form lists the assets at the top and the liabilities and owner's equity below.

The current ratio and the debt ratio are shown on the income statement.

Accounts payable is a temporary account.

On December 31,Axle Services posted the following accrual adjustment: Salary expense 1,000 Salary payable 1,000 Axle uses reversing entries.What reversing entry would be needed on January 1?

What is the key distinction between current and non-current liabilities?

Only temporary accounts appear on the post-closing trial balance.

The following contains information from the records of the Wellborn Engineers and Architects. Wellborn Engineers and Architects Selected Financial Information December 31,2013 Current assets \ 74,000 Current liabilities 44,000 Long-term assets 95,000 Long-term liabilities 60,000 Total revenues 50,000 Total expenses 30,000 Which of the following statements is an accurate interpretation of Wellborn Engineers and Architects',PC current ratio?

The following is the balance sheet for Green Landscaping. -Which of the following is the current ratio? (Round to two decimal places.)

A two-year note payable would be classified as a:

Using the following worksheet for Alcazar Service Co.,please prepare a statement of owner's equity.The data are for the year ended December 31,2012.