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Exam 4: Completing the Accounting Cycle

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Question 71

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Hannah Roberts owns and operates Hannah's Pool Service Company.On January 1,Hannah Roberts,Capital had a balance of $252,000.During the year,Hannah invested an additional $32,000 and withdrew $52,400.For the year ended December 31,Hannah's Pool Service Company reported a net income of $73,200.Prepare a statement of owner's equity for the year ended December 31.

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Question 72

Multiple Choice

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The income statement should be prepared

A) before the statement of owner's equity and balance sheet
B) after the statement of owner's equity and before the balance sheet
C) after the statement of owner's equity and balance sheet
D) after the balance sheet and before the statement of owner's equity

E) A) and B)
F) A) and D)

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Question 73

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

Office Equipment is an example of a current asset account.

Diane's Designs purchased a one-year liability insurance policy on March 1 of a year for $8,400 and recorded it as a prepaid expense.Which of the following amounts would be recorded as insurance expense during the adjusting process at the end of Diane's first month of operations on March 31?

The accounting cycle begins with preparing an unadjusted trial balance.

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

Debts listed as current liabilities are those that

Indicate whether each of the following would be reported in the financial statements as a (n) (a)current asset, (b)current liability, (c)revenue,or (d)expense:

In the accounting cycle,the last step is

Reconstruct adjusting and closing entries for the month ended September 30 from the T accounts below.​​​ ​ ​

During the end-of-period processing,which of the following best describes the logical order of steps?

Net income is shown on the work sheet in the Income Statement Debit column and the Balance Sheet Credit column.

The income statement is prepared from the adjusted trial balance or the Income Statement columns on the work sheet.

After posting the first closing entry to the owner's capital account,the balance will be increased (decreased) by

The following accounts were taken from the Adjusted Trial Balance columns of the work sheet:​ Net income for the period is

Balance sheet accounts are not considered real accounts.

A fiscal year for a business

The accumulated depreciation account is closed to the drawing account.

Match each journal entry that follows as one of the types of journal entries (a-c) below. -