Exam 4: Completing the Accounting Cycle

The balances for the accounts listed below appear in the Adjusted Trial balance columns of the end-of-period spreadsheet (work sheet). Indicate whether each balance should be extended to an Income Statement column or (b) a Balance Sheet column. 1. Capital Stock 2. Retained Earnings 3. Depreciation Expense 4. Accumulated Depreciation 5. Fees Earned 6. Unearned Fees 7. Supplies 8. Supplies Expense

A summary of selected ledger accounts appear below for Alberto's Plumbing Services for the current calendar year-end. Net income for the period is

The income statement will include

The trial balance prepared after all the closing entries have been posted is called a pre-closing trial balance.

The entry to close the appropriate insurance account at the end of the accounting period is

The classified balance sheet will subsection the assets as follows

The following are steps in the accounting cycle. Of the following, which would be prepared last?

Marcus Enterprises began in 2011 when Damien Marcus invested $8,000 in exchange for capital stock. The following is the work sheet for the company at the end of the first year in business. Marcus Enterprises Work Sheet For the Year Ended December 31, 2011 Prepare the required closing entries for Marcus Enterprises for the year ended December 31, 2011.

Accumulated Depreciation is a permanent account.

On the balance sheet, stockholders' equity is

Which of the accounts below would be closed by posting a debit to the account?

After the accounts were adjusted at January 31, 2014, the end of the fiscal year, the following balances were taken from the ledger of Taylor Pool Service Company:

During the closing process, some balance sheet accounts are closed and end the period with a zero balance.

A net loss is shown on the work sheet in the credit columns of both the Income Statement columns and the Balance Sheet columns.

Which one of the steps below is not aided by the preparation of the work sheet?

On September 1, the company pays rent for twelve months in advance and debits an asset account. At year end, the adjusting entry on the work sheet would

The retained earnings statement should be prepared

On the basis of the following data taken from the Adjusted Trial Balance columns of the work sheet for the year ended March 31 for Boles Athletic Company, journalize the four closing entries.

The dividends account is a temporary account.

The following are all the steps in the accounting cycle. List them in the order in which they should be done. - Closing entries are journalized and posted to the ledger. - An unadjusted trial balance is prepared. - An optional end-of-period spreadsheet (work sheet) is prepared. - A post-closing trial balance is prepared. - Adjusting entries are journalized and posted to the ledger. - Transactions are analyzed and recorded in the journal. - Adjustment data are assembled and analyzed. - Financial statements are prepared. - An adjusted trial balance is prepared. - Transactions are posted to the ledger.