Question 1

The following adjusted trial balance is the result of the adjustments made at the end of the month of March for Erik Martin Company. Utilize these adjusted values to prepare the closing entries for Erik Martin Company.

Accepted Answer

The answer of The following adjusted trial balance is the...

Question 2

Tracy Roberts, the sole stockholder of Surfer Dude Supplies, is requesting a $75,000 loan from the bank where you work as a loan officer. He brings to you the following trial balance (or statement of accounts) as of the end of his first year of operations.
(a) What three accounts do you think should be relabeled for greater clarity?
(b) What adjustments might be necessary before an accurate set of financial statements could be prepared?

Accepted Answer

(a) The following items should be relabeled for greater clarity:
Billings Due from Others-Accounts Receivable
Amounts Owed to Others-Accounts Payable
Investment in Business-Capital Stock
(b) The following adjustments might be necessary before an accurate set of financial statements could be prepared:

Question 3

The balance sheet should be prepared

Accepted Answer

A)   before the income statement and the retained earnings statement
B)   before the income statement and after the retained earnings statement
C)   after the income statement and the retained earnings statement
D)   after the income statement and before the retained earnings statementE) B) and D)
F) None of the above C

Question 4

Accepted Answer

1)
Journal Entries:
...

Question 5

Net income appears on the work sheet in the

Accepted Answer

A)   debit column of the Balance Sheet columns
B)   debit column of the Adjustments columns
C)   debit column of the Income Statement columns
D)   credit column of the Income Statement columnsE) A) and B)
F) A) and D)

Question 6

Which of the following accounts will not be closed to Income Summary at the end of the fiscal year?

Accepted Answer

A)   Salaries Expense
B)   Fees Earned
C)   Unearned Rent
D)   Depreciation ExpenseE) None of the above
F) A) and D)

Question 7

When preparing the retained earnings statement, the beginning retained earnings balance can always be found

Accepted Answer

A)   in the Income Statement columns of the work sheet
B)   in the statement of cash flows
C)   in the general ledger
D)   in the Adjustments columns of the work sheetE) B) and C)
F) A) and D)

Question 8

The work sheet is a working paper that accountants can use to summarize adjusting entries and the account balances for the financial statements.

Accepted Answer

A) True 
 B)False

Question 9

The income summary account is closed to the retained earnings account.

Accepted Answer

A) True 
 B)False

Question 10

The natural business year

Accepted Answer

A)   is a fiscal year that ends when business activities are at its lowest point.
B)   is a calendar year that ends when business activities are at its lowest point.
C)   is a fiscal year that ends when business activities are at its highest point.
D)   is a calendar year that ends when business activities are at its highest point.E) None of the above
F) A) and B)

Question 11

Once the adjusted trial balance is in balance, the flow of accounts will now go into the financial statements.

Accepted Answer

A) True 
 B)False  True

Question 12

Accumulated Depreciation is a permanent account.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Balance Sheet accounts are considered real accounts.

Accepted Answer

A) True 
 B)False

Question 15

Once the adjusting entries are posted, the adjusted trial balance is prepared to

Accepted Answer

A)   verify that the debits and credits are in balance
B)   verify that all of the adjustments were posted in the correct accounts
C)   verify that the net income (loss)  is correct for the period
D)   verify the correct flow of accounts into the financial statementsE) A) and B)
F) B) and C)

Question 16

On January 1, 2011, the retained earnings account of Crystal Pool Service Company had a balance of $252,000. During the year, the company issued an additional $20,000 of capital stock and paid $52,400 in dividends. For the year ended December 31, 2011, Crystal Pool Service Company reported a net income of $72,300. Prepare a retained earnings statement for the year ended December 31, 2011.

Accepted Answer

The answer of On January 1, 2011, the retained earnings...

Question 17

Selected ledger accounts appear below for Fulton Surveying Services for 2011.

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> Prepare a...

Question 18

Prepaid Insurance is an example of a current asset.

Accepted Answer

A) True 
 B)False

Question 19

The following are steps to the accounting cycle. Of the following, which step should be done first?

Accepted Answer

A)   Closing entries are journalized and posted to the ledger.
B)   Transactions are posted to the ledger.
C)   Adjusting entries are journalized and posted to the ledger.
D)   Financial statements are prepared.E) All of the above
F) A) and D)

Question 20

Accumulated depreciation appears on the

Accepted Answer

A)   balance sheet in the current assets section
B)   balance sheet in the property, plant and equipment section
C)   balance sheet in the long-term liabilities section
D)   income statement as an operating expenseE) C) and D)
F) A) and D)

Exam 4: Completing the Accounting Cycle

The following adjusted trial balance is the result of the adjustments made at the end of the month of March for Erik Martin Company. Utilize these adjusted values to prepare the closing entries for Erik Martin Company.

Correct Answer
verified

The balance sheet should be prepared

Correct Answer
verified
C

Correct Answer
verified
1)
Journal Entries:
...
View Answer

Net income appears on the work sheet in the

Correct Answer
verified

Which of the following accounts will not be closed to Income Summary at the end of the fiscal year?

Correct Answer
verified

When preparing the retained earnings statement, the beginning retained earnings balance can always be found

Correct Answer
verified

The work sheet is a working paper that accountants can use to summarize adjusting entries and the account balances for the financial statements.

Correct Answer
verified

The income summary account is closed to the retained earnings account.

Correct Answer
verified

The natural business year

Correct Answer
verified

Once the adjusted trial balance is in balance, the flow of accounts will now go into the financial statements.

Correct Answer
verified
True

Accumulated Depreciation is a permanent account.

Correct Answer
verified

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

Correct Answer
verified

Balance Sheet accounts are considered real accounts.

Correct Answer
verified

Once the adjusting entries are posted, the adjusted trial balance is prepared to

Correct Answer
verified

Correct Answer
verified

Selected ledger accounts appear below for Fulton Surveying Services for 2011.

Correct Answer
verified
Prepare a...
View Answer

Prepaid Insurance is an example of a current asset.

Correct Answer
verified

The following are steps to the accounting cycle. Of the following, which step should be done first?

Correct Answer
verified

Accumulated depreciation appears on the

Correct Answer
verified

Exam 4: Completing the Accounting Cycle

The following adjusted trial balance is the result of the adjustments made at the end of the month of March for Erik Martin Company. Utilize these adjusted values to prepare the closing entries for Erik Martin Company.

Correct AnswerverifiedShow Answer

The balance sheet should be prepared

Correct AnswerverifiedC

Correct Answerverified1)Journal Entries:...View AnswerShow Answer

Net income appears on the work sheet in the

Correct AnswerverifiedShow Answer

Which of the following accounts will not be closed to Income Summary at the end of the fiscal year?

Correct AnswerverifiedShow Answer

When preparing the retained earnings statement, the beginning retained earnings balance can always be found

Correct AnswerverifiedShow Answer

The work sheet is a working paper that accountants can use to summarize adjusting entries and the account balances for the financial statements.

Correct AnswerverifiedShow Answer

The income summary account is closed to the retained earnings account.

Correct AnswerverifiedShow Answer

The natural business year

Correct AnswerverifiedShow Answer

Once the adjusted trial balance is in balance, the flow of accounts will now go into the financial statements.

Correct AnswerverifiedTrue

Accumulated Depreciation is a permanent account.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Balance Sheet accounts are considered real accounts.

Correct AnswerverifiedShow Answer

Once the adjusting entries are posted, the adjusted trial balance is prepared to

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Selected ledger accounts appear below for Fulton Surveying Services for 2011.

Correct Answerverified Prepare a...View AnswerShow Answer

Prepaid Insurance is an example of a current asset.

Correct AnswerverifiedShow Answer

The following are steps to the accounting cycle. Of the following, which step should be done first?

Correct AnswerverifiedShow Answer

Accumulated depreciation appears on the

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
C

Correct Answer
verified
1)
Journal Entries:
...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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True

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Prepare a...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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