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Exam 4: Completing the Accounting Cycle

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Question 21

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The amount of the net income for a period appears on both the income statement and the balance sheet for that period.

A) True
B) False

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Question 22

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Kirk Enterprises offers rug cleaning services to business clients. Below is the trial balance for Kirk Enterprises, which was prepared on the end-of-period spreadsheet (work sheet) for the year ended July 31.​Required Enter the adjustment data in the work sheet for the transactions shown below and place the balances in the Adjusted Trial Balance columns.​Adjustments:a) The equipment is estimated to last for five years with no salvage value. The asset will be depreciated evenly over its useful life. Record one month's depreciation.b) Accrued wages, $2.c) Unused supplies on hand, $8.d) Of the unearned revenue, 75% has been earned.e) Unexpired insurance remaining at the end of the month, $9.

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Question 23

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The balance sheet accounts are referred to as real or permanent accounts.

After the account balances have been extended from the Adjusted Trial Balance columns on the work sheet, the difference between the initial totals of the Balance Sheet Debit and Credit columns is net income or net loss.

Which of the following accounts would appear in the Income Statement columns of the end-of-period spreadsheet?

The income statement should be prepared

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

Evan Roberts owns a business, Shore Sports, that rents canoes and kayaks. Below is the adjusted trial balance at December 31.​ The entry required to close the expense accounts at the end of the period will

Of the following steps of the accounting cycle, which step should be completed last?

The closing process is sometimes referred to as closing the books.

A reversing entry reverses the effects of an adjusting entry from the previous period.​

Which one of the fixed asset accounts listed below will not have a related contra asset account?

The accumulated depreciation account is closed to the drawing account.

Reconstruct the adjusting and closing entries from the following.​​​ ​ ​​ ​​

After analyzing transactions, the next step would be to post the transactions in the ledger.

The chart of accounts, the journal, and the ledger are essential parts of the accounting system.

After net income is entered on the end-of-period spreadsheet, the Balance Sheet Debit and Credit columns must

Wages are $37,500 per week for a five-day workweek, ending on Friday. The last payday of the year was Friday, June 26. Which of the following is correct for the reversing entry on July 1?

Evan Roberts owns a business, Shores Sports, that rents canoes and kayaks. Below is the adjusted trial balance at December 31.​ The entry required to close the revenue and expense accounts at the end of the period includes a

Accumulated Depreciation is a permanent account.