Deck 6: Financial Statements and the Closing Process

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سؤال
Long-term liabilities may also be called long-term debt.
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سؤال
The purpose and use of the income summary account is to summarize the difference between revenues and expenses.
سؤال
A statement of owner's equity is a statement summarizing all of the changes in owner's equity during a specified period of time.
سؤال
A separate explanation of each closing entry is necessary.
سؤال
The income summary account is an account used only during the closing process.
سؤال
The income summary account appears on the income statement at the end of the accounting period.
سؤال
To close a revenue account with a credit balance,debit the account for its balance and credit the income summary account.
سؤال
To close the income summary account with a credit balance,debit the account for its balance and credit the drawing account.
سؤال
A form of balance sheet that lists the assets at the left and the liabilities and owner's equity at the right is called a report form of balance sheet.
سؤال
The Account Title and Balance Sheet columns of the work sheet provide all of the information necessary to prepare the statement of owner's equity.
سؤال
Property,plant,and equipment are assets that are expected to serve the business for many years.
سؤال
Long-term liabilities are liabilities that are due in a period longer than one year.
سؤال
Expenses on the income statement could be listed in alphabetical order by dollar amount.
سؤال
The statement of owner's equity is prepared from information from the asset and liability accounts.
سؤال
To close an expense account with a debit balance,debit the account for its balance and credit the income summary account.
سؤال
An income statement is an itemized statement that provides information regarding the status of the assets,liabilities,and owner's equity of a business enterprise as of a specified date.
سؤال
Adjustments at the end of the period are not formally entered in the journal or posted to the accounts.
سؤال
A mortgage on an office building is an example of a property,plant,and equipment asset.
سؤال
The income statement includes all changes in owner's equity except those resulting from investments or withdrawals of assets by the owner.
سؤال
The steps involved in handling all of the transactions and events completed during an accounting period,beginning with placing data in a book of original entry and ending with a post-closing trial balance,are referred to collectively as the accounting cycle.
سؤال
The amounts in the financial statements must agree with the ledger account balances.
سؤال
Closing entries are made in the journal and posted to the ledger accounts.
سؤال
A post-closing trial balance is used to prove the equality of debit and credit balances in the general ledger accounts after the closing entries have been posted.
سؤال
Obligations that need not be paid for a long time,usually more than one year,are classified as current liabilities.
سؤال
After posting the adjusting entries,the balance of the depreciation expense account should agree with the amount shown on the income statement.
سؤال
Assets,liabilities,and the owner's capital account are closed at the end of the accounting period.
سؤال
The effect of drawing transactions on the capital account is formalized at any time during the accounting period.
سؤال
To close the drawing account with a debit balance,credit the account for its balance and debit the owner's capital account.
سؤال
The three types of business activities are operating activities,investing activities,and capital activities.
سؤال
Adjusting entries are recorded and posted after closing entries.
سؤال
A balance sheet that classifies (or groups)items by similarities is called a unified balance sheet.
سؤال
Revenue and expense account are permanent accounts.
سؤال
The heading for a balance sheet includes the name of the business,the title of the statement,and a period of time.
سؤال
The end-of-period work sheet is completed after adjusting entries have been recorded and posted.
سؤال
Expenses on the income statement could be listed in the same order as they appear in the chart of accounts.
سؤال
A form of balance sheet that shows the liabilities and owner's equity sections below the assets section is called an account form of balance sheet.
سؤال
Current assets include cash and other assets that will be converted into cash or consumed within one year or the normal operating cycle of the business,whichever is longer.
سؤال
Revenues and expenses are temporary accounts and are closed at the end of the accounting period.
سؤال
An income statement is an itemized statement for the purpose of providing information regarding the results of operations during a specified period of time.
سؤال
The accuracy of the statement of cash flows can be proved by comparing the cash provided by operating activities with the change in the cash balance.
سؤال
Changes in owner's equity that result from investments or withdrawals of assets by the owner are included in the

A) statement of owner's equity.
B) income statement.
C) balance sheet.
D) chart of accounts.
سؤال
After the accounts are closed and the journal entries have been posted,which of the following accounts would have a balance?

A) Payroll Taxes Expense
B) Miscellaneous Expense
C) Professional Expense
D) Supplies
سؤال
The journal entry to close the income summary account (showing a net loss)includes

A) debiting the drawing account and crediting Income Summary.
B) debiting Income Summary and crediting the drawing account.
C) debiting the owner's capital account and crediting Income Summary.
D) debiting Income Summary and crediting the owner's capital account.
سؤال
After the closing entries are journalized and posted,which of the following accounts would NOT have a balance?

A) Cash
B) Office Supplies
C) Accounts Payable
D) Service Revenue
سؤال
Which step is taken at the end of the accounting period?

A) analyze source documents
B) post to the general ledger accounts
C) prepare a trial balance
D) prepare a post-closing trial balance
سؤال
When recording closing entries in the general journal,which of the following is written in the Description column?

A) "closing entries"
B) a description of the transaction
C) nothing
D) "zero out accounts"
سؤال
A form of balance sheet that lists the liabilities and the owner's equity sections below the assets section is called the

A) account form.
B) journal form.
C) report form.
D) current form.
سؤال
The journal entry to close expense accounts includes

A) debiting the expense accounts and crediting Income Summary.
B) debiting Income Summary and crediting the expense accounts.
C) debiting the expense accounts and crediting the owner's capital account.
D) debiting the expense accounts and crediting the drawing account.
سؤال
After the closing entries have been posted,which of the following accounts would still have a balance?

A) Miscellaneous Revenues
B) Accumulated Depreciation Equipment
C) Salaries Expense
D) Supplies Expense
سؤال
Owner's equity can be increased through

A) withdrawals by the owner.
B) investments by the owner.
C) expenses exceeding revenues.
D) purchases of assets for cash.
سؤال
The journal entry to close the income summary account (showing a profit)includes

A) debiting the drawing account and crediting Income Summary.
B) debiting Income Summary and crediting the drawing account.
C) debiting the owner's capital account and crediting Income Summary.
D) debiting Income Summary and crediting the owner's capital account.
سؤال
The order in which financial statements should be prepared is

A) balance sheet,income statement,statement of owner's equity.
B) income statement,balance sheet,statement of owner's equity.
C) statement of owner's equity,balance sheet,income statement.
D) income statement,statement of owner's equity,balance sheet.
سؤال
The total revenue of the month of June amounted to $7,500; total expenses amounted to $3,500; and withdrawals amounted to $600.The net income for the month amounted to

A) $7,500.
B) $3,400.
C) $4,000.
D) $3,500.
سؤال
The total assets amount to $26,000 and the total liabilities amount to $18,000.The amount of the owner's equity is

A) $18,000.
B) $44,000.
C) $26,000.
D) $8,000.
سؤال
Which of the following steps of the accounting cycle are in the correct order?

A) prepare a trial balance,post to general ledger accounts,journalize adjusting and closing entries
B) make adjustments,complete a work sheet,post to general ledger accounts
C) prepare financial statements,make adjustments,prepare a trial balance
D) prepare a trial balance,make adjustments,prepare financial statements
سؤال
The amount reported in the Balance Sheet columns of the work sheet for the owner's capital represents the

A) ending balance that should be reported on the balance sheet.
B) beginning balance.
C) beginning balance plus additional investments.
D) beginning balance less withdrawals.
سؤال
The balance in an expense account is closed to a(n)

A) capital account.
B) revenue account.
C) drawing account.
D) income summary account.
سؤال
The owner's equity in a business amounted to $52,000 at the beginning of the year and $100,000 at the end of the year.The owner had made no additional investments and had withdrawn $19,000 during the year.The net income for the year amounted to

A) $81,000.
B) $67,000.
C) $48,000.
D) $171,000.
سؤال
To prove the equality of the debit and credit balances in the general ledger accounts after the closing entries have been journalized and posted,prepare the

A) balance sheet.
B) income statement.
C) adjustments.
D) post-closing trial balance.
سؤال
The journal entry to close revenue accounts includes

A) debiting the revenue accounts and crediting Income Summary.
B) debiting Income Summary and crediting the revenue accounts.
C) debiting the revenue accounts and crediting Cash.
D) debiting the revenue accounts and crediting the drawing account.
سؤال
The account to which revenue and expenses are closed is called

A) Cash.
B) Drawing.
C) Income Summary.
D) Net Income.
سؤال
A balance sheet that groups similar items is called a(n)

A) report form of balance sheet.
B) account form of balance sheet.
C) classified balance sheet.
D) temporary balance sheet.
سؤال
From the following partial work sheet for Walter Searing,journalize the closing entries necessary for month-end and prepare a post-closing trial balance.
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 From the following partial work sheet for Walter Searing,journalize the closing entries necessary for month-end and prepare a post-closing trial balance. ? ?   ? ?   ? ?  \begin{array} { | l | l | l | } \hline \text { Account Title } & \text { Debit } & \text { Credit } \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline \end{array} <div style=padding-top: 35px>  ?
?
 From the following partial work sheet for Walter Searing,journalize the closing entries necessary for month-end and prepare a post-closing trial balance. ? ?   ? ?   ? ?  \begin{array} { | l | l | l | } \hline \text { Account Title } & \text { Debit } & \text { Credit } \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline \end{array} <div style=padding-top: 35px>  ?
?
 Account Title  Debit  Credit \begin{array} { | l | l | l | } \hline \text { Account Title } & \text { Debit } & \text { Credit } \\\hline & & \\\hline & & \\\hline & & \\\hline & & \\\hline & & \\\hline & & \\\hline & & \\\hline & & \\\hline & & \\\hline & & \\\hline & & \\\hline & & \\\hline\end{array}
سؤال
The Income Summary account is used to

A) close the revenue accounts only.
B) close the revenue accounts and expense accounts only.
C) close the drawing account.
D) close revenue accounts and expense accounts and update the owner's capital account.
سؤال
(Appendix)A utility bill for $315 was paid.This activity is classified as

A) operating.
B) investing.
C) financing.
D) paying.
سؤال
From the partial work sheet,prepare an income statement,a statement of owner's equity,and a classified balance sheet.The owner made no additional investments in the business during the month.
From the partial work sheet,prepare an income statement,a statement of owner's equity,and a classified balance sheet.The owner made no additional investments in the business during the month.  <div style=padding-top: 35px>
سؤال
Use the adjusted trial balance below.
a.
For each account,open a T account,title the account,and place its balance in it.
b.
Prepare closing entries in general journal format.
c.
Post closing entries to the T accounts.Give each entry a reference letter.
d.
Prepare a post-closing trial balance.
?
 Adjusted Trial Balance  Account Title Debit Credit  Cash 26,000 Accounts Receivable 3,300 Prepaid Insurance 6,600 Supplies 1,200 Land 42,300 Equipment 5,700 Accumulated Depreciation-Equipment 5,500 Accounts Payable 5,300 Owner, Capital 73,900 Owner, Drawing 3,200 Service Fees 20,000 W7ages Expense 8.500 Supplies Expense 2,100 Utilities Expense 200 Insurance Expense 100 Depreciation Expense-Equipment 5.500104,700104,700\begin{array}{c}\text { Adjusted Trial Balance }\\\\\begin{array}{lr} \underline{\text { Account Title} } & \underline{\text { Debit} } & \underline{\text { Credit }}\\\text { Cash } & 26,000 \\\text { Accounts Receivable } & 3,300 \\\text { Prepaid Insurance } & 6,600 \\\text { Supplies } & 1,200 \\\text { Land } & 42,300 \\\text { Equipment } & 5,700\\\text { Accumulated Depreciation-Equipment } && 5,500 \\\text { Accounts Payable } && 5,300 \\\text { Owner, Capital } && 73,900\\\text { Owner, Drawing } & 3,200 & \\\text { Service Fees } & & 20,000 \\\text { W7ages Expense } & 8.500 & \\\text { Supplies Expense } & 2,100 \\\text { Utilities Expense } & 200 \\\text { Insurance Expense } & 100 \\\text { Depreciation Expense-Equipment } & \underline{ 5.500} &\underline{\quad\quad}\\&104,700&104,700\end{array}\end{array}
سؤال
Cash and other assets that will be converted into cash within one year or the normal operating cycle of the business,whichever is longer,are called

A) property.
B) plant.
C) equipment.
D) current assets.
سؤال
From the following adjusted trial balance,journalize the necessary closing entries.Prepare a post-closing trial balance.
 Adjusted Trial Balance  Account Title Debit Credit Cash 1,500 Accounts Receivable 1,460 Prepaid Insurance 800 Supplies 900 Equipment 5,500 Accumulated Depreciation-Equipment 550 Accounts Payable 1,300 Wages Payable 760 Owner, Capital 6,550 Owner, Drawing 1,400 Service Revenue 8,900 Wages Expense 3,000 Rent Expense 1,500 Supplies Expense 900 Utilities Expense 600 Depreci ation Expense-Equipment 50018,06018,060\begin{array}{c}\text { Adjusted Trial Balance }\\\begin{array}{lr} \underline{\text { Account Title}}& \underline{\text { Debit}}& \underline{\text { Credit}}\\\text { Cash } & 1,500 \\\text { Accounts Receivable } & 1,460 \\\text { Prepaid Insurance } & 800 \\\text { Supplies } & 900 \\\text { Equipment } & 5,500\\\text { Accumulated Depreciation-Equipment } && 550 \\\text { Accounts Payable } && 1,300 \\\text { Wages Payable } && 760 \\\text { Owner, Capital } && 6,550\\\text { Owner, Drawing } & 1,400 & \\\text { Service Revenue } & & 8,900 \\\text { Wages Expense } & 3,000 &\\\text { Rent Expense } & 1,500 \\\text { Supplies Expense } & 900 \\\text { Utilities Expense } & 600 \\\text { Depreci ation Expense-Equipment } & \underline{500}&\underline{\quad\quad} \\&18,060&18,060\end{array}\end{array}
سؤال
What is the correct sequence for closing the temporary accounts?

A) revenue accounts,expense accounts,Income Summary,drawing account
B) expense accounts,revenue accounts,Income Summary,drawing account
C) revenue accounts,expense accounts,drawing account,Income Summary
D) drawing account,revenue accounts,expense accounts,Income Summary
سؤال
(Appendix)Business transactions can be classified as

A) operating,investing,and accounting.
B) operating,financing,and lending.
C) operating,investing,and financing.
D) operating,lending,and borrowing.
سؤال
The account to which the drawing account is closed is called

A) Revenue.
B) Income Summary.
C) Owner's Capital.
D) Cash.
سؤال
Number in their proper order the following steps in the accounting cycle.
Number in their proper order the following steps in the accounting cycle.  <div style=padding-top: 35px>
سؤال
The journal entry to close the drawing account includes

A) debiting the owner's capital account and crediting the drawing account.
B) debiting the drawing account and crediting the owner's capital account.
C) debiting Income Summary and crediting the drawing account.
D) debiting the drawing account and crediting Income Summary.
سؤال
The body of the income statement consists of an itemized list of

A) assets and liabilities.
B) assets and owner's equity.
C) cash and revenues.
D) revenues and expenses.
سؤال
The steps involved in handling all of the transactions and events completed during an accounting period,beginning with placing data in a book of original entry and ending with a post-closing trial balance,are referred to collectively as

A) input.
B) processing.
C) output.
D) the accounting cycle.
سؤال
(Appendix)A company receives cash from a bank loan.This activity is classified as

A) operating.
B) investing.
C) financing.
D) borrowing.
سؤال
On December 31,20--,after adjustments,Tuscany Company's general ledger contains the account balances as shown on the partially completed work sheet below.Journalize the (four)closing entries necessary at the end of December.


On December 31,20--,after adjustments,Tuscany Company's general ledger contains the account balances as shown on the partially completed work sheet below.Journalize the (four)closing entries necessary at the end of December. ​ ​   ​  <div style=padding-top: 35px>
On December 31,20--,after adjustments,Tuscany Company's general ledger contains the account balances as shown on the partially completed work sheet below.Journalize the (four)closing entries necessary at the end of December. ​ ​   ​  <div style=padding-top: 35px>
سؤال
What is the purpose of the post-closing trial balance?

A) to prove no errors were made while recording entries in the journal
B) to prove the equality of the debit and credit balances in the general ledger accounts
C) to prove the closing entries were recorded correctly in the journal
D) to prove the balances in the general ledger accounts are correct
سؤال
Capital at the beginning of the month amounted to $4,000; net income for the month amounted to $1,000; and withdrawals for personal use during the month amounted to $2,000.Capital at the end of the month is

A) $3,000.
B) $2,000.
C) $7,000.
D) $5,000.
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Deck 6: Financial Statements and the Closing Process
1
Long-term liabilities may also be called long-term debt.
True
2
The purpose and use of the income summary account is to summarize the difference between revenues and expenses.
True
3
A statement of owner's equity is a statement summarizing all of the changes in owner's equity during a specified period of time.
True
4
A separate explanation of each closing entry is necessary.
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5
The income summary account is an account used only during the closing process.
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6
The income summary account appears on the income statement at the end of the accounting period.
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7
To close a revenue account with a credit balance,debit the account for its balance and credit the income summary account.
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8
To close the income summary account with a credit balance,debit the account for its balance and credit the drawing account.
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9
A form of balance sheet that lists the assets at the left and the liabilities and owner's equity at the right is called a report form of balance sheet.
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10
The Account Title and Balance Sheet columns of the work sheet provide all of the information necessary to prepare the statement of owner's equity.
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11
Property,plant,and equipment are assets that are expected to serve the business for many years.
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12
Long-term liabilities are liabilities that are due in a period longer than one year.
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13
Expenses on the income statement could be listed in alphabetical order by dollar amount.
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14
The statement of owner's equity is prepared from information from the asset and liability accounts.
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15
To close an expense account with a debit balance,debit the account for its balance and credit the income summary account.
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16
An income statement is an itemized statement that provides information regarding the status of the assets,liabilities,and owner's equity of a business enterprise as of a specified date.
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17
Adjustments at the end of the period are not formally entered in the journal or posted to the accounts.
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18
A mortgage on an office building is an example of a property,plant,and equipment asset.
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19
The income statement includes all changes in owner's equity except those resulting from investments or withdrawals of assets by the owner.
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20
The steps involved in handling all of the transactions and events completed during an accounting period,beginning with placing data in a book of original entry and ending with a post-closing trial balance,are referred to collectively as the accounting cycle.
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21
The amounts in the financial statements must agree with the ledger account balances.
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22
Closing entries are made in the journal and posted to the ledger accounts.
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23
A post-closing trial balance is used to prove the equality of debit and credit balances in the general ledger accounts after the closing entries have been posted.
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24
Obligations that need not be paid for a long time,usually more than one year,are classified as current liabilities.
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25
After posting the adjusting entries,the balance of the depreciation expense account should agree with the amount shown on the income statement.
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26
Assets,liabilities,and the owner's capital account are closed at the end of the accounting period.
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27
The effect of drawing transactions on the capital account is formalized at any time during the accounting period.
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28
To close the drawing account with a debit balance,credit the account for its balance and debit the owner's capital account.
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29
The three types of business activities are operating activities,investing activities,and capital activities.
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30
Adjusting entries are recorded and posted after closing entries.
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31
A balance sheet that classifies (or groups)items by similarities is called a unified balance sheet.
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32
Revenue and expense account are permanent accounts.
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33
The heading for a balance sheet includes the name of the business,the title of the statement,and a period of time.
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34
The end-of-period work sheet is completed after adjusting entries have been recorded and posted.
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35
Expenses on the income statement could be listed in the same order as they appear in the chart of accounts.
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36
A form of balance sheet that shows the liabilities and owner's equity sections below the assets section is called an account form of balance sheet.
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37
Current assets include cash and other assets that will be converted into cash or consumed within one year or the normal operating cycle of the business,whichever is longer.
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38
Revenues and expenses are temporary accounts and are closed at the end of the accounting period.
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39
An income statement is an itemized statement for the purpose of providing information regarding the results of operations during a specified period of time.
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40
The accuracy of the statement of cash flows can be proved by comparing the cash provided by operating activities with the change in the cash balance.
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41
Changes in owner's equity that result from investments or withdrawals of assets by the owner are included in the

A) statement of owner's equity.
B) income statement.
C) balance sheet.
D) chart of accounts.
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42
After the accounts are closed and the journal entries have been posted,which of the following accounts would have a balance?

A) Payroll Taxes Expense
B) Miscellaneous Expense
C) Professional Expense
D) Supplies
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43
The journal entry to close the income summary account (showing a net loss)includes

A) debiting the drawing account and crediting Income Summary.
B) debiting Income Summary and crediting the drawing account.
C) debiting the owner's capital account and crediting Income Summary.
D) debiting Income Summary and crediting the owner's capital account.
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44
After the closing entries are journalized and posted,which of the following accounts would NOT have a balance?

A) Cash
B) Office Supplies
C) Accounts Payable
D) Service Revenue
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45
Which step is taken at the end of the accounting period?

A) analyze source documents
B) post to the general ledger accounts
C) prepare a trial balance
D) prepare a post-closing trial balance
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46
When recording closing entries in the general journal,which of the following is written in the Description column?

A) "closing entries"
B) a description of the transaction
C) nothing
D) "zero out accounts"
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47
A form of balance sheet that lists the liabilities and the owner's equity sections below the assets section is called the

A) account form.
B) journal form.
C) report form.
D) current form.
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48
The journal entry to close expense accounts includes

A) debiting the expense accounts and crediting Income Summary.
B) debiting Income Summary and crediting the expense accounts.
C) debiting the expense accounts and crediting the owner's capital account.
D) debiting the expense accounts and crediting the drawing account.
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49
After the closing entries have been posted,which of the following accounts would still have a balance?

A) Miscellaneous Revenues
B) Accumulated Depreciation Equipment
C) Salaries Expense
D) Supplies Expense
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50
Owner's equity can be increased through

A) withdrawals by the owner.
B) investments by the owner.
C) expenses exceeding revenues.
D) purchases of assets for cash.
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51
The journal entry to close the income summary account (showing a profit)includes

A) debiting the drawing account and crediting Income Summary.
B) debiting Income Summary and crediting the drawing account.
C) debiting the owner's capital account and crediting Income Summary.
D) debiting Income Summary and crediting the owner's capital account.
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52
The order in which financial statements should be prepared is

A) balance sheet,income statement,statement of owner's equity.
B) income statement,balance sheet,statement of owner's equity.
C) statement of owner's equity,balance sheet,income statement.
D) income statement,statement of owner's equity,balance sheet.
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53
The total revenue of the month of June amounted to $7,500; total expenses amounted to $3,500; and withdrawals amounted to $600.The net income for the month amounted to

A) $7,500.
B) $3,400.
C) $4,000.
D) $3,500.
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54
The total assets amount to $26,000 and the total liabilities amount to $18,000.The amount of the owner's equity is

A) $18,000.
B) $44,000.
C) $26,000.
D) $8,000.
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55
Which of the following steps of the accounting cycle are in the correct order?

A) prepare a trial balance,post to general ledger accounts,journalize adjusting and closing entries
B) make adjustments,complete a work sheet,post to general ledger accounts
C) prepare financial statements,make adjustments,prepare a trial balance
D) prepare a trial balance,make adjustments,prepare financial statements
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56
The amount reported in the Balance Sheet columns of the work sheet for the owner's capital represents the

A) ending balance that should be reported on the balance sheet.
B) beginning balance.
C) beginning balance plus additional investments.
D) beginning balance less withdrawals.
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57
The balance in an expense account is closed to a(n)

A) capital account.
B) revenue account.
C) drawing account.
D) income summary account.
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58
The owner's equity in a business amounted to $52,000 at the beginning of the year and $100,000 at the end of the year.The owner had made no additional investments and had withdrawn $19,000 during the year.The net income for the year amounted to

A) $81,000.
B) $67,000.
C) $48,000.
D) $171,000.
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59
To prove the equality of the debit and credit balances in the general ledger accounts after the closing entries have been journalized and posted,prepare the

A) balance sheet.
B) income statement.
C) adjustments.
D) post-closing trial balance.
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60
The journal entry to close revenue accounts includes

A) debiting the revenue accounts and crediting Income Summary.
B) debiting Income Summary and crediting the revenue accounts.
C) debiting the revenue accounts and crediting Cash.
D) debiting the revenue accounts and crediting the drawing account.
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61
The account to which revenue and expenses are closed is called

A) Cash.
B) Drawing.
C) Income Summary.
D) Net Income.
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62
A balance sheet that groups similar items is called a(n)

A) report form of balance sheet.
B) account form of balance sheet.
C) classified balance sheet.
D) temporary balance sheet.
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63
From the following partial work sheet for Walter Searing,journalize the closing entries necessary for month-end and prepare a post-closing trial balance.
?
?
 From the following partial work sheet for Walter Searing,journalize the closing entries necessary for month-end and prepare a post-closing trial balance. ? ?   ? ?   ? ?  \begin{array} { | l | l | l | } \hline \text { Account Title } & \text { Debit } & \text { Credit } \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline \end{array} ?
?
 From the following partial work sheet for Walter Searing,journalize the closing entries necessary for month-end and prepare a post-closing trial balance. ? ?   ? ?   ? ?  \begin{array} { | l | l | l | } \hline \text { Account Title } & \text { Debit } & \text { Credit } \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline \end{array} ?
?
 Account Title  Debit  Credit \begin{array} { | l | l | l | } \hline \text { Account Title } & \text { Debit } & \text { Credit } \\\hline & & \\\hline & & \\\hline & & \\\hline & & \\\hline & & \\\hline & & \\\hline & & \\\hline & & \\\hline & & \\\hline & & \\\hline & & \\\hline & & \\\hline\end{array}
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64
The Income Summary account is used to

A) close the revenue accounts only.
B) close the revenue accounts and expense accounts only.
C) close the drawing account.
D) close revenue accounts and expense accounts and update the owner's capital account.
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65
(Appendix)A utility bill for $315 was paid.This activity is classified as

A) operating.
B) investing.
C) financing.
D) paying.
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66
From the partial work sheet,prepare an income statement,a statement of owner's equity,and a classified balance sheet.The owner made no additional investments in the business during the month.
From the partial work sheet,prepare an income statement,a statement of owner's equity,and a classified balance sheet.The owner made no additional investments in the business during the month.
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67
Use the adjusted trial balance below.
a.
For each account,open a T account,title the account,and place its balance in it.
b.
Prepare closing entries in general journal format.
c.
Post closing entries to the T accounts.Give each entry a reference letter.
d.
Prepare a post-closing trial balance.
?
 Adjusted Trial Balance  Account Title Debit Credit  Cash 26,000 Accounts Receivable 3,300 Prepaid Insurance 6,600 Supplies 1,200 Land 42,300 Equipment 5,700 Accumulated Depreciation-Equipment 5,500 Accounts Payable 5,300 Owner, Capital 73,900 Owner, Drawing 3,200 Service Fees 20,000 W7ages Expense 8.500 Supplies Expense 2,100 Utilities Expense 200 Insurance Expense 100 Depreciation Expense-Equipment 5.500104,700104,700\begin{array}{c}\text { Adjusted Trial Balance }\\\\\begin{array}{lr} \underline{\text { Account Title} } & \underline{\text { Debit} } & \underline{\text { Credit }}\\\text { Cash } & 26,000 \\\text { Accounts Receivable } & 3,300 \\\text { Prepaid Insurance } & 6,600 \\\text { Supplies } & 1,200 \\\text { Land } & 42,300 \\\text { Equipment } & 5,700\\\text { Accumulated Depreciation-Equipment } && 5,500 \\\text { Accounts Payable } && 5,300 \\\text { Owner, Capital } && 73,900\\\text { Owner, Drawing } & 3,200 & \\\text { Service Fees } & & 20,000 \\\text { W7ages Expense } & 8.500 & \\\text { Supplies Expense } & 2,100 \\\text { Utilities Expense } & 200 \\\text { Insurance Expense } & 100 \\\text { Depreciation Expense-Equipment } & \underline{ 5.500} &\underline{\quad\quad}\\&104,700&104,700\end{array}\end{array}
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68
Cash and other assets that will be converted into cash within one year or the normal operating cycle of the business,whichever is longer,are called

A) property.
B) plant.
C) equipment.
D) current assets.
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69
From the following adjusted trial balance,journalize the necessary closing entries.Prepare a post-closing trial balance.
 Adjusted Trial Balance  Account Title Debit Credit Cash 1,500 Accounts Receivable 1,460 Prepaid Insurance 800 Supplies 900 Equipment 5,500 Accumulated Depreciation-Equipment 550 Accounts Payable 1,300 Wages Payable 760 Owner, Capital 6,550 Owner, Drawing 1,400 Service Revenue 8,900 Wages Expense 3,000 Rent Expense 1,500 Supplies Expense 900 Utilities Expense 600 Depreci ation Expense-Equipment 50018,06018,060\begin{array}{c}\text { Adjusted Trial Balance }\\\begin{array}{lr} \underline{\text { Account Title}}& \underline{\text { Debit}}& \underline{\text { Credit}}\\\text { Cash } & 1,500 \\\text { Accounts Receivable } & 1,460 \\\text { Prepaid Insurance } & 800 \\\text { Supplies } & 900 \\\text { Equipment } & 5,500\\\text { Accumulated Depreciation-Equipment } && 550 \\\text { Accounts Payable } && 1,300 \\\text { Wages Payable } && 760 \\\text { Owner, Capital } && 6,550\\\text { Owner, Drawing } & 1,400 & \\\text { Service Revenue } & & 8,900 \\\text { Wages Expense } & 3,000 &\\\text { Rent Expense } & 1,500 \\\text { Supplies Expense } & 900 \\\text { Utilities Expense } & 600 \\\text { Depreci ation Expense-Equipment } & \underline{500}&\underline{\quad\quad} \\&18,060&18,060\end{array}\end{array}
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70
What is the correct sequence for closing the temporary accounts?

A) revenue accounts,expense accounts,Income Summary,drawing account
B) expense accounts,revenue accounts,Income Summary,drawing account
C) revenue accounts,expense accounts,drawing account,Income Summary
D) drawing account,revenue accounts,expense accounts,Income Summary
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71
(Appendix)Business transactions can be classified as

A) operating,investing,and accounting.
B) operating,financing,and lending.
C) operating,investing,and financing.
D) operating,lending,and borrowing.
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72
The account to which the drawing account is closed is called

A) Revenue.
B) Income Summary.
C) Owner's Capital.
D) Cash.
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73
Number in their proper order the following steps in the accounting cycle.
Number in their proper order the following steps in the accounting cycle.
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74
The journal entry to close the drawing account includes

A) debiting the owner's capital account and crediting the drawing account.
B) debiting the drawing account and crediting the owner's capital account.
C) debiting Income Summary and crediting the drawing account.
D) debiting the drawing account and crediting Income Summary.
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75
The body of the income statement consists of an itemized list of

A) assets and liabilities.
B) assets and owner's equity.
C) cash and revenues.
D) revenues and expenses.
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76
The steps involved in handling all of the transactions and events completed during an accounting period,beginning with placing data in a book of original entry and ending with a post-closing trial balance,are referred to collectively as

A) input.
B) processing.
C) output.
D) the accounting cycle.
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77
(Appendix)A company receives cash from a bank loan.This activity is classified as

A) operating.
B) investing.
C) financing.
D) borrowing.
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78
On December 31,20--,after adjustments,Tuscany Company's general ledger contains the account balances as shown on the partially completed work sheet below.Journalize the (four)closing entries necessary at the end of December.


On December 31,20--,after adjustments,Tuscany Company's general ledger contains the account balances as shown on the partially completed work sheet below.Journalize the (four)closing entries necessary at the end of December. ​ ​   ​
On December 31,20--,after adjustments,Tuscany Company's general ledger contains the account balances as shown on the partially completed work sheet below.Journalize the (four)closing entries necessary at the end of December. ​ ​   ​
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79
What is the purpose of the post-closing trial balance?

A) to prove no errors were made while recording entries in the journal
B) to prove the equality of the debit and credit balances in the general ledger accounts
C) to prove the closing entries were recorded correctly in the journal
D) to prove the balances in the general ledger accounts are correct
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80
Capital at the beginning of the month amounted to $4,000; net income for the month amounted to $1,000; and withdrawals for personal use during the month amounted to $2,000.Capital at the end of the month is

A) $3,000.
B) $2,000.
C) $7,000.
D) $5,000.
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