Exam 4: Review of the Accounting Cycle

St.Augustine Properties collected advance rentals of $360,000 from its customers during the year.The balance in the unearned rent revenue account increased from $15,000 on January 1 to $35,000 on December 31.Rents earned during the year totaled ________.

When a company receives a utility bill payable next month,the entry includes a(n)________.

The December 31 financial statements of Jagger Company included the effects of the following transactions: a.Wages of $6,800 were recorded.These wages will be paid on January 2. b.Interest expense of $750 that will be paid on February 1 was recorded. c.Interest revenue of $300 that will be paid on March 1 was recorded. Required: Prepare the reversing entries for these transactions.

Which of the following accounts has a normal debit balance?

Mobile Corporation had the following transactions for the month of January.Record these transactions along with explanations.If no entry is required,state "No Entry." a.Issued 10,000 shares of no-par common stock for $250,000. b.Signed a agreement with CompuSource to deliver three new computers costing a total of $6,000 in 10 days. c.Purchased office furniture for $70,000 from Birmingham Company. d.Purchased a two-year insurance policy for $3,600.This policy will become effective February 1. e.Paid $1,500 in office rent for the month of January. f.Accepted delivery of the new computers and paid cash. g.Paid wages of $5,000 to employees. h.Provided services on account for $80,000. i.Paid $50,000 to Birmingham Company on account. j.Received payment in full from customers. k.Paid an electricity bill for $325.

ABC Corporation issued common stock to its investors for $125,000.The journal entry to record this transaction includes a(n)________.

Carroll Company accrued interest of $250 on a $5,000,10% note payable at December 31.The annual interest payment will be made on July 1.The reversing entry will include a(n)________.

If a company initially records a prepaid expense as an asset,an adjusting entry must be made at the end of the period to increase the expense account.

The post-closing trial balance contains only permanent accounts.

Orlando Company began operations on December 1.The company had the following transactions during December.Record these transactions in proper form,including explanations.If an entry is not required,please write "No Entry." a.Issued 50,000 shares of no par and received $350,000 cash. b.Extended an offer of employment to a sales manager who will begin work on January 1. c.Purchased machinery on account for $450,000 from Tampa Company. d.Purchased a two-year insurance policy for $4,800.This policy will become effective on January 1. e.Paid $2,500 in office rent for the month of January. f.Purchased office furniture for $50,000 with a 10% down payment and a six month note payable for the balance. g.Paid wages of $15,000 to employees. h.Provided services to customers for $85,000. i.Paid $200,000 to Tampa Company on account. j.Received payment in full for services rendered. k.Paid a telephone bill for $525.

Rent expense is normally considered a peripheral transaction of a company.

The statement of cash flows is prepared after all other financial statements have been prepared.

Heartland Corporation records all insurance premiums as prepaid insurance.Additional information for the current year is presented below: What were the total amount of insurance premiums paid during the year?

Cameron Diaz Corporation purchased a computer system for $20,000.The company paid $5,000 cash and issued a $15,000 note payable for the entire balance.The journal entry to record this transaction includes a(n)________.

If an unearned revenue is initially recorded as a revenue,the end-of-period adjusting entry records the unexpired portion.

Jenner Corporation paid its annual dividend.This transaction represents a(n)________.

Snowden Company purchased a 2 year insurance policy on March 31 for $6,000 and charged the entire amount to Insurance Expense.The adjusting entry on December 31 will include ________.

On January 1,Mountbatten Corporation paid $18,000 for a year's advance rent on a building and recorded it as Rent Expense.When financial statements are prepared on March 31,the adjusting entry should include ________.

A revenue account has a normal debit balance.

Financial statements are prepared after the temporary accounts are closed.