Exam 4: Review of the Accounting Cycle

All of the following accounts has a normal debit balance except ________.

The first financial statement prepared from the adjusted trial balance is the ________.

Olympic Equipment.borrowed $100,000 on November 1.The note matures in one year and the interest rate is 9%.What amount of interest expense will be accrued on December 31?

List the steps required to close temporary accounts.

The post-closing trial balance contains both permanent and temporary accounts.

Thunderball Sports Club collected $325,000 from its clients during the year.If unearned revenue at the beginning of the year was $65,000 and revenue earned during the year was $340,000,what was unearned revenue at the end of the year?

True North Real Estate Management failed to adjust its Unearned Rent Revenue account for the $15,000 that had been earned during the current year.What effect does this omission have on the current year financial statements?

The final step in preparing a worksheet is to compute net income or loss.

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

If a company earns interest in June but does not receive it until December,this is referred to as an accrued revenue.

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

Every adjusting journal entry will affect one balance sheet account and one income statement account.

Jackson Company sold land that had been held for future plant expansion for more than its carrying value.This transaction is a(n)________.

Closing revenue accounts results in a credit to income summary.