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Exam 4: Completing the Accounting Cycle

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Question 111

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At March 31, account balances after adjustments for Vizzini Cinema are as follows: Instructions Prepare the closing journal entries for Vizzini Cinema.

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Question 112

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Closing entries

A) are prepared before the financial statements.
B) reduce the number of permanent accounts.
C) cause the revenue and expense accounts to have zero balances.
D) summarize the activity in every account.

E) A) and C)
F) A) and D)

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Question 113

Multiple Choice

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The adjustments entered in the adjustments columns of a worksheet are

The income summary account

The dividends account is a permanent account whose balance is carried forward to the next accounting period.

Which one of the following is usually performed only at the end of a company's annual accounting period?

The following information is for Sunny Day Real Estate: The total dollar amount of assets to be classified as current assets is

Closing the dividends account to Retained Earnings is not necessary if net income is greater than dividends during the period.

Give the definition of current assets and current liabilities and provide two examples of each.

The post-closing trial balance is entered in the first two columns of a worksheet.

The steps in the preparation of a worksheet do not include

The following information is for Bright Eyes Auto Supplies: The total dollar amount of assets to be classified as current assets is

The post-closing trial balance contains only

Assuming that there is a net loss for the period, debits equal credits in all but which section of the worksheet?

The closing entry process consists of closing

The account balances appearing on the trial balance (below) were taken from the general ledger of Irick's Copy Shop at September 30. Additional information for the month of September which has not yet been recorded in the accounts is as follows: (a) A physical count of supplies indicates $300 on hand at September 30. (b) The amount of insurance that expired in the month of September was $200. (c) Depreciation on equipment for September was $400. (d) Rent owed on the copy shop for the month of September was $600 but will not be paid until October. Instructions Using the above information, complete the worksheet on the following page for Irick's Copy Shop for the month of September.

Which of the following would not be classified a long-term liability?

Compute the dollar amount of current assets based on the following account balances. $\begin{array} { l r } \text { Accounts Receivable } & \$ 22,000 \\\text { Accumulated Depreciation-Equipment } & 27,000 \\\text { Cash } & 8,400 \\\text { Equipment } & 93,000 \\\text { Prepaid Rent } & 7,000 \\\text { Short-term Investments } & 15,000\end{array}$

The adjusted trial balance for Molina Company is presented below. Molina made an error during year when they debited Utilities Expense for $2,000 instead of Equipment for a cash purchase of equipment. In addition, Molina failed to accrue $4,000 of Service Revenue. Instructions (a) Prepare an income statement and a retained earnings statement for the year. (b) Prepare a classified balance sheet at July 31.

All revenue and expense accounts have been closed at the end of the calendar year for Patton Company. The Income Summary account has total debits of $530,000 and total credits of $600,000. As of the same date, Retained Earnings has a balance of $115,000, and the Dividends account has a balance of $48,000. Instructions (a) Journalize the entries required to complete the closing of the accounts. (b) Prepare a retained earnings statement for the year ended December 31, 2018.