Deck 5: The Accounting Cycle: Reporting Financial Results

Question 1

The accountant for Sheldrake Consulting prepared the following "Adjusted" Trial Balance at December 31, of the current year, after one year of operations:
Prepare closing entries for Sheldrake Consulting.

Answer 1

Question 2

SUNDIAL Inc.
Trial Balance
December 31, Current Year


-What is the balance in Income Summary before it is closed to Retained Earnings?

A) $61.
B) $50.
C) $73.
D) $145.

Answer 2

$61.

Question 3

SUNDIAL Inc.
Trial Balance
December 31, Current Year


-What is the balance in Retained Earnings after posting closing entries at December 31?

A) $117.
B) $106.
C) $61.
D) $45.

Answer 3

$106.

Question 4

SUNDIAL Inc.
Trial Balance
December 31, Current Year


-What is the total of the debit column on the after-closing trial balance?

A) $222.
B) $372.
C) $233.
D) $161.

Question 5

SUNDIAL Inc.
Trial Balance
December 31, Current Year


-Which accounts are closed to Income Summary?

A) All accounts.
B) Revenue and expenses.
C) Revenue, expenses, and dividends.
D) All accounts that are not nominal.

Question 6

Which accounts will appear on the balance sheet?

A) Retained earnings of $56.
B) Dividends of $11.
C) Net income of $60.
D) None of the above.

Question 7

The accountant for Successful Consulting prepared the following "Adjusted" Trial Balance at December 31, of the current year, after one year of operations:
Prepare an After-Closing Trial Balance.

Question 8

DAVID'S, INC.
Trial Balance
December 31, Current Year
Prepare the closing entries.