Exam 4: Review of the Accounting Cycle

Bay Meadows Real Estate collected rentals of $420,000 during the year.The beginning balance in its rent receivable account was $50,000 and its ending balance was $45,000.The beginning balance in unearned rent revenue was $25,000,and the ending balance was $15,000.What was total rent revenue for the year?

The normal balance of an account is the side on which an increase in the account balance is recorded.

Asset accounts are temporary accounts.

If a prepaid expense is initially recorded as an expense,the end-of-period adjusting entry records the expired portion.

On December 31,Griffin Company accrued interest revenue of $350 on a $14,000,10% note.The annual interest payment will be made on October 1.The reversing entry will include a(n)________.

Helmsley Corporation received one year's rent in advance on a warehouse.This transaction is a(n)________.

Which of the following accounts would be shown on the post-closing trial balance?

Accrued expenses are paid before they are incurred.

Liabilities represent claims of third parties against the assets of a business.

Permanent accounts include all balance sheet accounts.

Which of the following is not an adjusting entry?

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

Nantucket Corporation has the following income statement for the year ended December 31. Required: Prepare the necessary closing entries for December 31.

Issuance of common stock for cash would be recorded by a ________.

Unearned revenues may be initially recorded as assets or expenses.

If the total of all debit entries equals the total of all credit entries on the unadjusted trial balance,all transactions have been correctly recorded.

The amounts on a company's unadjusted trial balance are taken from the general ledger.

Bradley Company paid $25,000 in dividends to its shareholders.This transaction ________.

Which of the following errors will not be revealed by the unadjusted trial balance?

Deferred expenses may be initially recorded as assets or revenues.