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Exam 4: Completing the Accounting Cycle

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Question 71

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Match each journal entry that follows as one of the types of journal entries a-c) below. -Cash 450 Fees Earned 450

A) Journal entries
B) Adjusting journal entries
C) Closing journal entries

D) None of the above
E) All of the above

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Question 72

Multiple Choice

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Net income appears on the end-of-period spreadsheet in the

A) debit column of the Balance Sheet columns
B) debit column of the Adjustments columns
C) debit column of the Income Statement columns
D) credit column of the Income Statement columns

E) C) and D)
F) B) and D)

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Question 73

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All companies must use a calendar year as their fiscal year.

Liabilities that will be due within one year or less and that are to be paid out of current assets are called current liabilities.

Prepaid Insurance is an example of a current asset.

Which of these accounts would appear in the Balance Sheet columns of the end-of-period spreadsheet?

Journalizing and posting the adjustments and closing entries update the ledger for the new accounting period.

The following adjusted trial balance is the result of the adjustments made at the end of the month of March for Martin Corporation. Use these adjusted values to journalize the closing entries for Martin Corporation.

Use the adjusted trial balance for Stockton Company below to answer the questions that follow. -Determine the net income loss) for the period.

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

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

The trial balance may be listed on the work sheet instead of being prepared separately.

Deferred expenses that benefit a relatively short period of time are listed on the balance sheet as current assets.

After all adjustments have been made, but before the accounts have been closed, the following balances were taken from the ledger of Ramona's Designs: $\begin{array} { l c l l } \text { Accounts Payable } & \$ 27,600 & \text { Rent Expense } & \$ 32,700 \\\text { Accounts Receivable } & 64,500 & \text { Salary Expense } & 41,390 \\\text { Accumulated Depreciation } & 73,325 & \text { Salaries Payable } & 8,150 \\\text { Cash } & 17,150 & \text { Service Revenue } & 186,000 \\\text { Depreciation Expense } & 13,500 & \text { Supplies } & 1,500 \\\text { Equipment } & 165,000 & \text { Supplies Expense } & 2,500 \\\text { Insurance Expense } & 2,510 & \text { Common Stock } & 79,950 \\\text { Prepaid Insurance } & 6,275 & \text { Dividends } & 48,000 \\& & \text { Retained Earnings } & 20,000\end{array}$ Journalize the entries to close the appropriate accounts.

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

Accumulated Depreciation is a permanent account.

Use the adjusted trial balance for Stockton Company below to answer the questions that follow. -Determine the retained earnings ending balance.

The work sheet is not considered a part of the formal accounting records.

Which one of the steps below is not aided by the preparation of the end-of-period spreadsheet?

The end-of-period spreadsheet work sheet) 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?