Exam 5: The Accounting Cycle Completed

When the balance in the Income Summary account is a credit, the company has:

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the nature of the account (permanent/temporary). Example: -

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the nature of the account (permanent/temporary). Example: -

In the first space below, indicate whether each account is a real or nominal account using (R)Real Account and (N)Nominal Account. In the second space below, indicate by an (X)if the account should be closed.

Which of the following accounts should not be closed to Income Summary at the end of the fiscal year?

After posting the closing entries, which of the following accounts is most likely not to have a zero balance?

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the nature of the account (permanent/temporary). Example: -

Journal entries that are needed in order to update account balances for internal business transactions (such as supplies and prepaid rent)at the end of the period are:

The Income Summary account can be found on the worksheet.

The balance in the J. Higgins, Withdrawals account was $4,200. The entry to close the account would include a:

When the expenses are closed:

From the following items in the income statement columns of the worksheet of Friend's Tutoring at December 31, prepare the closing entries without explanation, assuming that a $1,000 withdrawal was made during the period.

Revenues and expenses are closed to the Income Summary account.

When the balance of the Income Summary account is a credit, the entry to close this account is:

The trial balance prepared after all of the temporary accounts have been closed is called a post-closing trial balance.

The business failed to close any of the revenue accounts. The result of this error is that:

In the normal accounting cycle the:

The following normal account balances were found on the general ledger before closing entries were prepared: After closing entries are posted, what is the balance in the Cash account?

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

Real accounts are those accounts with balances that are brought forward to the next accounting period.