Exam 4: The Accounting Cycle

The end-of-period spreadsheet for the current year for Jamal Company shows Balance Sheet columns with a debit total of $630,430 and a credit total of $614,210. This is before the amount for net income or net loss has been included. In preparing the income statement from the end-of-period spreadsheet, what is the amount of net income or net loss?

After Net Income or Loss is entered on the end-of-period spreadsheet, the debit column total must equal the credit column total for the Balance Sheet pair of columns.

Complete the following end-of-period spreadsheet for Danilo Enterprises.

Since the adjustments are entered on the end-of-period spreadsheet, it is not necessary to record them in the journal or post them to the ledger.

The trial balance may be listed on the end-of-period spreadsheet instead of being prepared separately.

Once the adjusted trial balance is in balance, the flow of accounts will now go into the financial statements.

Land is an example of a plant asset.

The end-of-period spreadsheet for the current year for Jamal Company shows Balance Sheet columns with a debit total of $614,210 and a credit total of $630,430. This is before the amount for net income or net loss has been included. In preparing the income statement from the work sheet, what is the amount of net income or net loss?

The amount of the net income for a period appears on both the income statement and the balance sheet for that period.

You have just accepted your first job out of college, which requires you to evaluate loan requests at Eastwood National Bank. The first loan request you receive is from Richard Enterprises. Richard Tracy, the CEO, is requesting $105,000 and brings you the following trial balance (or statement of accounts) for the first year of operations ended December 31. Which of the following accounts do you think might need to be adjusted before an accurate set of financial statements could be prepared?

Which of the following is not true about closing entries?

Net income is shown on the end-of-period spreadsheet in the Income Statement debit column and the Balance Sheet credit column.

All income statement accounts will be closed at the end of the period.

The ending balance of retained earnings is

The income summary account is also called

Match each journal entry that follows as one of the types of journal entries (a-c) below. -​Unearned Revenue 985 Fees Earned 985

After all of the account balances have been extended to the Balance Sheet columns of the end-of-period spreadsheet, the totals of the debit and credit columns show debits of $37,686 and credits of $41,101. This indicates that

The dividends account is a temporary account.

The use of reversing entries is

The post-closing trial balance differs from the adjusted trial balance in that it does not