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Exam 4: Completing the Accounting Cycle

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Question 51

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For each account listed,identify the category in which it would appear on a classified balance sheet.

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Question 52

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Which of the following would be considered a long-term asset?

A) Accounts Payable
B) Land
C) Cash
D) Common Stock

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Question 53

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Prepaid Rent is always classified as a long-term asset.

Regarding a classified balance sheet,which of the following statements is correct?

In the worksheet,the adjusted balance of the Service Revenue account appears in the credit column of the income statement.

The balances of select accounts of Stephanie,Inc.as of December 31,2016 are given below. $\begin{array} { | l | r | r | } \hline &{ \text { Debit } } & \text { Credit } \\\hline \text { Building } & \$ 100,000 & \\\hline \text { Cash } & 8,000 & \\\hline \text { Office Supplies } & 800 & \\\hline \text { Furniture } & 6,000 & \\\hline \text { Prepaid Insurance } & 500 & \\\hline \text { Accumulated Depreciation-Furniture } & & \$ 4,000 \\\hline \text { Land } & 33,000 & \\\hline \text { Accumulated Depreciation-Building } & & 4,700 \\\hline \text { Accounts Receivable } & 4,000 & \\\hline\end{array}$ What amount of total long-term assets would be shown on the balance sheet?

Emerald,Inc. ,earned revenues of $69,000 and incurred expenses of $74,000.No dividends were declared.Which of the following statements is correct?

GAAP requires publicly traded companies to prepare a post-closing trial balance and publish it in their annual report.

Which accounts are closed at the end of the accounting period? Why is it necessary to close these accounts?

The ending balances in the Common Stock and Dividend accounts are shown on the income statement columns of the worksheet.

The financial statement that reports assets,liabilities,and stockholders' equity as of the last day of the period is called the ________.

Which of the following entries is necessary to close the appropriate depreciation account at the end of the year?

The following is the adjusted trial balance as of December 31,2016 of Mason Photography: $\begin{array}{|l|r|r|}\hline \text { Account } & \text { Debit } & \text { Credit } \\\hline \text { Cash } & \$ 1,700 & \\\hline \text { Accounts Receivable } & 8,500 & \\\hline \text { Supplies } & 100 & \\\hline \text { Equipment } & 7,50 &\\\hline\text { Accumulated Depreciation-Equipment } & & \$ 2,000 \\\hline \text { Accounts Payable } & & 1,200 \\\hline \text { Salaries Payable } & & 800 \\\hline \text { Unearned Revenue } & & 600 \\\hline \text { Common Stock } & & 3,400 \\\hline \text { Dividends } & 2,300 &\\\hline \text { Service Revenue } & & 40,000 \\\hline \text { Salaries Expense } & 24,000 & \\\hline \text { Supplies Expense } & 2,300 & \\\hline \text { Depreciation Expense-Equipment } & 1,600 & \\\hline \text { Total } & \underline{\$ 48,000} & \$ 448,000 \\\hline\end{array}$ Provide the closing entry for revenues.

The Office Supplies account is a temporary account.

The beginning balance in the Common Stock account of a company was $14,000.The revenues and expenses were $240,000 and $100,000,respectively.During the year,the company declared and paid dividends of $7,000.The ending balance in the Retained Earnings was $133,000.(Assume that the opening balance of Retained Earnings was zero. )

The balance sheet section of the worksheet includes the asset and liability accounts and all equity accounts except revenues and expenses.

Patents,copyrights,and trademarks are examples of ________.

Which of the following steps must be completed before preparing the adjusted trial balance?

James Service Company earned revenues of $100,000 and incurred expenses of $107,000.Prepare the entry to close the Income Summary account.

Which of the following is a current asset that is expected to be converted to cash,sold,or consumed during the next year (or the normal operating cycle,if longer) ?