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Exam 4: The Accounting Cycle

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Question 91

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After the accounts have been adjusted at January 31, the end of the fiscal year, the following balances are taken from the ledger of Harrison's Dog Walking Service Company: ​ Journalize the two entries required to close the accounts ​

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Question 92

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Accounts reported on the balance sheet that are carried forward from year to year are known as permanent accounts.

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Question 93

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You have just accepted your first job out of college, which requires you to evaluate loan requests at Eastwood National Bank. The first loan request you receive is from Richard Enterprises. Richard Tracy, the CEO, is requesting $105,000 and brings you the following trial balance (or statement of accounts) for the first year of operations ended December 31. What three accounts do you think should be relabeled for greater clarity?

Which of these titles would appear in the Income Statement columns of the end-of-period spreadsheet?

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

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?

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

Accumulated Depreciation appears on the

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

Astin Company has current assets of $82,530, total assets of $242,050, total net income of $58,240, current liabilities of $72,120, and total liabilities of $205,300. Astin's Company's working capital is

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

Accrued expenses are ordinarily listed on the balance sheet as current assets.

The accounting cycle begins with preparing an unadjusted trial balance.

Financial statements should be prepared before the closing entries are journalized and posted.

The current ratio for the past three years for Xpert Styling is: ​ ​ What does the change in the current ratio from Year 1 to Year 3 indicate?

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

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

The following data were taken from the Adjusted Trial Balance columns of the end-of-period spreadsheet for April 30 for Abigail Trucking: ​ Prepare a classified balance sheet. ​ ​

Alpha Company has current assets of $74,524, total assets of $203,310, total net income of $67,913, current liabilities of $60,100, and total liabilities of $150,600. ​ What is Alpha Company's current ratio?

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. ​