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Exam 4: Completing the Accounting Cycle

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Question 21

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Where does net income appear on a worksheet?

A) Net income appears only in the income statement debit column.
B) Net income appears in the balance sheet credit column and in the income statement debit column.
C) Net income appears in the income statement credit column and in the balance sheet debit column.
D) Net income appears only in the balance sheet credit column.

E) A) and B)
F) A) and C)

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Question 22

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Use the Adjusted Trial Balance for Anderson Service Company to prepare the classified balance sheet at September 30,2016.Use the report form.You must compute the ending balance of Retained Earnings. Andersan Servire Carnpany Adjusted Trial Balance September 3?, 2016

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Net Income: Service Revenue $27,500 less...

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Question 23

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The following is the adjusted trial balance as of December 31,2017 of Peri Brothers,Inc.: Provide the closing entry for expenses.

Clear Cleaning Services pays out wages every week on Friday.Payroll expense totals $4,000 per week,based on a five-day week.The month of June ended on a Thursday.On Thursday,June 30,Clear made the following accrual adjustment: $\begin{array} { | c | r | r | } \hline \text { Wages Expense } & 3,200 & \\\hline \text { Wage Payable } & & 3,200 \\\hline\end{array}$ At the same time,they prepared the following reversing entry to be booked on July 1: $\begin{array} { | c | r | r | } \hline \text { Wages Payable } & 3,200 & \\\hline \text { Wages Expense } & & 3,200 \\\hline\end{array}$ On Friday afternoon,when wages were paid,what journal entry was made?

Ellis Service Company had the following unadjusted balances at December 31,2016: Salaries Payable,$0; Salaries Expense,$12,000.The following transactions took place on December 31,2016: Accrued Salaries Expense,$5,000 Closed the Salaries Expense account. The following transaction took place on January 4,2017: Paid salaries of $6,000.This payment included $5,000 that was accrued on December 31,2016 and $1,000 for the first few days in January 2017. Prepare the journal entry for January 4,2017,assuming that reversing entries were not made.

Net income (loss)is the difference between the total debits and the total credits in the income statement columns of the worksheet.

All assets that will not be converted to cash or used up within the business's operating cycle or one year,whichever is greater,are called ________.

Which of the following would be considered the weakest current ratio?

Reversing entries are special journal entries that ease the burden of accounting for transactions in a later period.

Net income is entered as the balancing amount on the debit side of the income statement columns and the credit side of the balance sheet columns of the worksheet.

Reversing entries are dated on the first day of the new accounting period.

The Interest Expense in the worksheet's unadjusted trial balance column is $3,500.Interest Expense in the income statement column is $9,000.Which of the following entries would have caused this difference?

As a part of the closing process,revenues and expenses may be closed to a temporary account called the Net Income (Loss)account.

Calculate the current ratio using the following information: (Round your answer to two decimals. ) $\begin{array} { l l } \text { Cash } & \$ 6,000 \\\text { Accounts Receivable } & 1,300 \\\text { Prepaid Rent } & 1,100 \\\text { Land } & 20,000 \\\text { Equipment } & 6,000 \\\text { Accumulated Depreciation } & 1,000 \\\text { Accounts Payable } & 5,000 \\\text { Salaries Payable } & 1,000 \\\text { Notes Payable-long term } & 8, 000\end{array}$

Which of the following accounts would appear in the income statement debit column?

The Common Stock account is a temporary account.

Answer the following questions regarding the current ratio:

A balance sheet that lists the assets above the liabilities and stockholders' equity sections is a(n) ________ balance sheet.

A balance sheet prepared in the report form lists the assets on the left and the liabilities and stockholders' equity on the right.

The worksheet helps accountants to ________.