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Exam 4: Completing the Accounting Cycle

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Question 61

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The balances for the accounts listed below appeared in the Adjusted Trial Balance columns of the work sheet.Indicate whether each balance should flow to (a)the income statement, (b)the statement of owner's equity,or (c)the balance sheet.

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Question 62

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Assets,liabilities,and owner's capital are real accounts and do not get closed at the end of the period.

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Question 63

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Use the adjusted trial balance for Stockton Company to answer the questions that follow. ​ -Use the adjusted trial balance for Stockton Company.Determine the total liabilities for the period.

Evan Roberts owns a business,Shores Sports,that rents canoes and kayaks.Below is the adjusted trial balance at December 31.​ The entry required to close the revenue and expense accounts at the end of the period includes a

If the totals of the Income Statement Debit and Credit columns of a work sheet are $27,000 and $29,000,respectively,after all account balances have been extended,the amount of the net loss is $2,000.

Capital and drawing are reported in the owner's equity section of the balance sheet.

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

The most important output of the accounting cycle is the financial statements.

Which one of the fixed asset accounts listed below will not have a related contra asset account?

The totals of the Adjusted Trial Balance columns on a work sheet will always be the sum of the Trial Balance column totals and the Adjustments column totals.

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.

You evaluate loan requests as part of your job at Eastwood National Bank.One loan request you received is from Surfer Dude Supplies,a small proprietorship.Richard Tracy,the owner,is requesting $105,000 and brings you a trial balance (or statement of accounts)for his first year of operations ended December 31.​RequiredWhile you are willing to work with Richard,how would you explain to him that a complete set of financial statements from his accountant would be more useful for evaluating the loan request?

After analyzing transactions,the next step would be to post the transactions in the ledger.

The drawing account is debited in the closing entry.

Which of the following accounts would appear in the Income Statement columns of the end-of-period spreadsheet?

Real accounts are not permanent accounts.

Robert Evans owns a business,Beachside Realty,that rents condominiums and furnishings.Below is the adjusted trial balance at December 31.​ Prepare the entry required to close the revenue and expense accounts at the end of the period.

The current ratio is computed by dividing current liabilities by current assets.

Use the following end-of-period spreadsheet to answer the questions that follow. ​ ​ ​ -Use the end-of-period spreadsheet for Finley Company.The first closing entry would be

Prepare closing entries from the following end-of-period spreadsheet.