Question 1

Match between columns
                        Premises: Note payable
Prepaid expense
Cash
Income summary
Owner's capital
Service revenue
Land
Owner's drawings
Accounts payable
Unearned revenue
Salaries expense
Depreciation expense
Rent expense
Accounts receivable
Interest payable

Accepted Answer

The Answer of temporary and permanent is...

Question 2

When constructing a work sheet, accounts are often needed that are not listed in the trial balance already entered on the work sheet from the ledger. Where should these additional accounts be shown on the work sheet?

Accepted Answer

These additional accounts are inserted immediately below the trial balance totals to ensure they are included in the work sheet calculations for the current accounting period.

Question 3

A reversing entry

Accepted Answer

A reversing entry is made at the beginning of a new accounting period and is the exact opposite of an adjusting entry made in the previous period. This simplifies the recording of subsequent transactions by eliminating the need for certain adjustments.

Question 4

At March 31, 2014, account balances after adjustments for Maddux Cinema are as follows:  Instructions 
a. Prepare the closing journal entries for Maddux Cinema.
b. Prepare a post-closing trial balance.

Accepted Answer

The answer of At March 31, 2014, account balances after...

Question 5

All revenue accounts (totalling $600,000), expense accounts (totalling $650,000), and the Income Summary account have been closed for the year ended December 31, 2014 for Fineberg Productions, an unincorporated business. After closing those accounts, P. Fineberg, Capital has a balance of $115,000, and P. Fineberg, Drawings has a balance of $48,000.
Instructions
a. Journalize the entries required to complete the closing of the accounts.
b. Prepare a statement of owner's equity for the year ended December 31, 2014.

Accepted Answer

The answer of All revenue accounts (totalling $600,000), expense accounts...

Question 6

If the total debits exceed total credits in the balance sheet columns of the work sheet, owner's equity

Accepted Answer

The answer of If the total debits exceed total credits...

Question 7

Although it may look unusual, when preparing a reversing entry you may create

Accepted Answer

Reversing entries are made at the beginning of the new accounting period to reverse certain adjusting entries made at the end of the previous period. A common use of reversing entries is to reverse accrued expenses. When an expense is accrued, it is recognized before it is paid, creating a liability. At the beginning of the new period, a reversing entry is made to negate this accrual. This can result in a temporary credit balance in the expense account if the actual expense payment is recorded later in the period. This process simplifies the accounting process by ensuring that the expense is not double-counted and is recognized in the correct period.

Question 8

If a company utilizes reversing entries, they will

Accepted Answer

Reversing entries are made at the beginning of the next accounting period to reverse the effect of certain adjusting entries made in the previous period. This helps to simplify the recording process and ensure accurate financial statements.

Question 9

The adjusted account balances of Stine Company, at December 31, 2014, are as follows:  Instructions 
a. Prepare closing entries for December 31, 2014.
b. Determine the balance in B. Stine's capital account after the entries have been posted.

Accepted Answer

The answer of The adjusted account balances of Stine Company,...

Question 10

Reversing entries are useful

Accepted Answer

The answer of Reversing entries are useful
...

Question 11

The income statement and balance sheet columns of Rand Company's work sheet reflect the following totals: 
-To enter the profit (or loss) for the period into the above work sheet requires an entry to the

Accepted Answer

To enter the profit (or loss) for the period into the worksheet, it requires an entry to the income statement credit column (if it's a profit) or debit column (if it's a loss) to balance the income and expenses, and to the balance sheet debit column (if it's a profit) or credit column (if it's a loss) to adjust the equity section accordingly. This reflects the increase (profit) or decrease (loss) in equity resulting from the period's operations.

Question 12

Reversing entries are used to reverse two type of adjusting entries:

Accepted Answer

Reversing entries are typically used to reverse the adjusting entries for accrued revenues and accrued expenses. This simplifies the accounting process in the next period by negating the impact of the initial accruals, making it easier to record actual revenues or expenses when they occur.

Question 13

The income statement and balance sheet columns of Rand Company's work sheet reflect the following totals: 
-The profit (or loss) for the period is

Accepted Answer

The answer of The income statement and balance sheet columns...

Question 14

The work sheet does NOT show

Accepted Answer

The worksheet does not show the ending balance in the owner's capital account; it is used to prepare financial statements and does not directly display the final capital account balance.

Question 15

The following selected accounts appear in the adjusted trial balance for Bender Company.
1. Accumulated Depreciation 5. Supplies
2. Depreciation Expense 6. Accounts Payable
3. J. Bender, Capital 7. Service Revenue
4. J. Bender, Drawings
Instructions
Identify the accounts that would be included in the post-closing trial balance.

Accepted Answer

The answer of The following selected accounts appear in the...

Question 16

When preparing a worksheet, the profit (or loss) for the period

Accepted Answer

The profit (or loss) for the period is determined by calculating the difference between the totals of the debit and credit columns for the income statement section of the worksheet. This reflects the company's financial performance over the period, showing whether it has made a profit or incurred a loss.

Question 17

When using a work sheet, adjusting entries are journalized

Accepted Answer

The answer of When using a work sheet, adjusting entries...

Question 18

Assuming that there is a loss for the period, which column will the loss balance be entered in?

Accepted Answer

The answer of Assuming that there is a loss for...

Question 19

The adjusted account balances of Fitness Centre at July 31 are as follows:  Instructions
Prepare the end of the period closing entries for the Fitness Centre.

Accepted Answer

The answer of The adjusted account balances of Fitness Centre...

Question 20

As Al Choi was doing his year-end accounting, he noticed that the bookkeeper had made errors in recording several transactions. The erroneous transactions are as follows:
1. A cheque for $900 was issued for supplies previously purchased on account. The bookkeeper debited Accounts Receivable and credited Cash for $900.
2. A cheque for $680 was received as payment on account. The bookkeeper debited Accounts Payable for $860 and credited Accounts Receivable for $860.
3. When making the entry to record the year's depreciation expense, the bookkeeper debited Accumulated Depreciation for $3,500 and credited Cash for $3,500.
4. When accruing the interest on a note payable, the bookkeeper debited Cash for $200 and credited Interest Payable for $200.
Instructions
Prepare the appropriate correcting entries. (Do not reverse the original entries.)

Accepted Answer

The answer of As Al Choi was doing his year-end...

Quiz 4: Completion of the Accounting Cycle

The closing process requires only temporary accounts to be adjusted. Listed below are both temporary and permanent accounts. State which accounts are permanent or temporary.

When constructing a work sheet, accounts are often needed that are not listed in the trial balance already entered on the work sheet from the ledger. Where should these additional accounts be shown on the work sheet?

A reversing entry

At March 31, 2014, account balances after adjustments for Maddux Cinema are as follows: Instructions a. Prepare the closing journal entries for Maddux Cinema. b. Prepare a post-closing trial balance.

If the total debits exceed total credits in the balance sheet columns of the work sheet, owner's equity

Although it may look unusual, when preparing a reversing entry you may create

If a company utilizes reversing entries, they will

The adjusted account balances of Stine Company, at December 31, 2014, are as follows: Instructions a. Prepare closing entries for December 31, 2014. b. Determine the balance in B. Stine's capital account after the entries have been posted.

Reversing entries are useful

The income statement and balance sheet columns of Rand Company's work sheet reflect the following totals: -To enter the profit (or loss) for the period into the above work sheet requires an entry to the

Reversing entries are used to reverse two type of adjusting entries:

The income statement and balance sheet columns of Rand Company's work sheet reflect the following totals: -The profit (or loss) for the period is

The work sheet does NOT show

When preparing a worksheet, the profit (or loss) for the period

When using a work sheet, adjusting entries are journalized

Assuming that there is a loss for the period, which column will the loss balance be entered in?

The adjusted account balances of Fitness Centre at July 31 are as follows: Instructions Prepare the end of the period closing entries for the Fitness Centre.