Question 1

The owner's Capital,Withdrawals,and Income Summary accounts for Laurel Repair Company for the accounting period are presented below in T account form after the recording and posting of closing entries:  
-The total amount of expenses for the period is

Accepted Answer

A)  $200.
B)  $400.
C)  $900.
D)  $500.E) C) and D)
F) None of the above

Question 2

Using the following information and the trial balance accounts and balances in the work sheet provided,complete the work sheet.
a.Expired insurance totals $260.
b.Of the unearned revenue,all has been earned by the balance sheet date.
c.Estimated depreciation of equipment is $120.
d.Accrued wages equal $400.
e.Unused supplies on hand are $90.

Accepted Answer

The answer of Using the following information and the trial...

Question 3

K & K Enterprises pays wages of $16,000 every other Friday ($1,600 per weekday).
a.In the journal provided,prepare the following entries for the fiscal year ended May 31,20x5 (omit explanations):

b.What would the June 8 entry be if no reversing entry was made? Use the journal provided.

Accepted Answer

The answer of K & K Enterprises pays wages of...

Question 4

Reversing entries can be made for accruals,but not for deferrals.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following accounts is not closed during the closing process?

Accepted Answer

A)  Owner's Capital
B)  Commissions Earned
C)  Income Summary.
D)  WithdrawalsE) A) and D)
F) A) and B)

Question 6

IFRS are important to multinational companies because

Accepted Answer

A)  if they can use IFRS for all their operations,it would simplify the process of preparing financial statements.
B)  it would lower their taxes in each country in which they do business.
C)  it would enable them to achieve higher profitability due to the different reporting standards under IFRS.
D)  All of these choices.E) B) and C)
F) A) and D)

Question 7

There is sufficient information on a post-closing trial balance to prepare an income statement.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following adjustments most likely would be reversed?

Accepted Answer

A)  Adjustment to record depreciation expense
B)  Adjustment to allocate prepaid insurance to the current period
C)  Adjustment to determine supplies expense for the period
D)  Adjustment to accrue salariesE) A) and D)
F) All of the above

Question 9

Reversing entries are all dated as of the first day of the new accounting period.

Accepted Answer

A) True 
 B)False

Question 10

The Income Summary account is credited in the entry that closes

Accepted Answer

A)  the Withdrawals account.
B)  expense accounts.
C)  net income.
D)  revenue accounts.E) None of the above
F) A) and B)

Question 11

Use the following adjusted trial balance to answer the question below.  
-The entry to close the John Clair,Withdrawals account is:

Accepted Answer

A)  
B)  
C)  
D)  E) C) and D)
F) All of the above

Question 12

During the closing process,expenses are transferred to the debit side of the Income Summary account.

Accepted Answer

A) True 
 B)False

Question 13

The balances of all the real (permanent)accounts are the same on the adjusted trial balance as they are on a post-closing trial balance.

Accepted Answer

A) True 
 B)False

Question 14

When the Income Statement columns of the work sheet are initially footed,they should be in balance.

Accepted Answer

A) True 
 B)False

Question 15

When a company has a net loss,the net loss amount is entered on the work sheet on the

Accepted Answer

A)  credit side of both the Income Statement and the Balance Sheet columns.
B)  credit side of the Income Statement columns and the debit side of the Balance Sheet columns.
C)  debit side of the Income Statement columns and the credit side of the Balance Sheet columns.
D)  debit side of both the Income Statement and the Balance Sheet columns.E) B) and C)
F) C) and D)

Question 16

The post-closing trial balance differs from the adjusted trial balance in that it does not

Accepted Answer

A)  take into account owner investments and withdrawals.
B)  take into account adjusting entries.
C)  include income statement accounts.
D)  include balance sheet accounts.E) A) and B)
F) A) and D)

Question 17

Which of the following accounts is a real account?

Accepted Answer

A)  Building
B)  Depreciation Expense-Buildings
C)  Interest Expense
D)  Service RevenueE) C) and D)
F) B) and C)

Question 18

The preparation of adjusting entries

Accepted Answer

A)  is easy because they are simply copied from the work sheet.
B)  is difficult,and therefore they must first be entered into the journal in pencil.
C)  typically precedes preparation of the work sheet.
D)  typically succeeds the preparation of the financial statements.E) All of the above
F) A) and D)

Question 19

After all closing entries have been posted,which of the following accounts is most likely to have a nonzero balance?

Accepted Answer

A)  Interest Expense
B)  Unearned Revenue
C)  Service Revenue
D)  Income SummaryE) None of the above
F) A) and B)

Question 20

Closing entries will

Accepted Answer

A)  decrease the owner's Capital balance.
B)  either increase or decrease the owner's Capital balance.
C)  increase the owner's Capital balance.
D)  not affect the owner's Capital balance.E) B) and C)
F) A) and D)

Exam 4: Completing the Accounting Cycle

K & K Enterprises pays wages of $16,000 every other Friday ($1,600 per weekday). a.In the journal provided,prepare the following entries for the fiscal year ended May 31,20x5 (omit explanations): b.What would the June 8 entry be if no reversing entry was made? Use the journal provided.

Correct Answer
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There is sufficient information on a post-closing trial balance to prepare an income statement.

Correct Answer
verified

Use the following adjusted trial balance to answer the question below. -The entry to close the John Clair,Withdrawals account is:

Correct Answer
verified

The balances of all the real (permanent)accounts are the same on the adjusted trial balance as they are on a post-closing trial balance.

Correct Answer
verified

Closing entries will

Correct Answer
verified

IFRS are important to multinational companies because

Correct Answer
verified

The preparation of adjusting entries

Correct Answer
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Which of the following accounts is not closed during the closing process?

Correct Answer
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Reversing entries can be made for accruals,but not for deferrals.

Correct Answer
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Which of the following accounts is a real account?

Correct Answer
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During the closing process,expenses are transferred to the debit side of the Income Summary account.

Correct Answer
verified

The owner's Capital,Withdrawals,and Income Summary accounts for Laurel Repair Company for the accounting period are presented below in T account form after the recording and posting of closing entries: -The total amount of expenses for the period is

Correct Answer
verified

When a company has a net loss,the net loss amount is entered on the work sheet on the

Correct Answer
verified

Reversing entries are all dated as of the first day of the new accounting period.

Correct Answer
verified

Correct Answer
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The Income Summary account is credited in the entry that closes

Correct Answer
verified

Which of the following adjustments most likely would be reversed?

Correct Answer
verified

After all closing entries have been posted,which of the following accounts is most likely to have a nonzero balance?

Correct Answer
verified

The post-closing trial balance differs from the adjusted trial balance in that it does not

Correct Answer
verified

When the Income Statement columns of the work sheet are initially footed,they should be in balance.

Correct Answer
verified

Exam 4: Completing the Accounting Cycle

K & K Enterprises pays wages of $16,000 every other Friday ($1,600 per weekday). a.In the journal provided,prepare the following entries for the fiscal year ended May 31,20x5 (omit explanations): b.What would the June 8 entry be if no reversing entry was made? Use the journal provided.

Correct AnswerverifiedShow Answer

There is sufficient information on a post-closing trial balance to prepare an income statement.

Correct AnswerverifiedShow Answer

Use the following adjusted trial balance to answer the question below. -The entry to close the John Clair,Withdrawals account is:

Correct AnswerverifiedShow Answer

The balances of all the real (permanent)accounts are the same on the adjusted trial balance as they are on a post-closing trial balance.

Correct AnswerverifiedShow Answer

Closing entries will

Correct AnswerverifiedShow Answer

IFRS are important to multinational companies because

Correct AnswerverifiedShow Answer

The preparation of adjusting entries

Correct AnswerverifiedShow Answer

Which of the following accounts is not closed during the closing process?

Correct AnswerverifiedShow Answer

Reversing entries can be made for accruals,but not for deferrals.

Correct AnswerverifiedShow Answer

Which of the following accounts is a real account?

Correct AnswerverifiedShow Answer

During the closing process,expenses are transferred to the debit side of the Income Summary account.

Correct AnswerverifiedShow Answer

The owner's Capital,Withdrawals,and Income Summary accounts for Laurel Repair Company for the accounting period are presented below in T account form after the recording and posting of closing entries: -The total amount of expenses for the period is

Correct AnswerverifiedShow Answer

When a company has a net loss,the net loss amount is entered on the work sheet on the

Correct AnswerverifiedShow Answer

Reversing entries are all dated as of the first day of the new accounting period.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The Income Summary account is credited in the entry that closes

Correct AnswerverifiedShow Answer

Which of the following adjustments most likely would be reversed?

Correct AnswerverifiedShow Answer

After all closing entries have been posted,which of the following accounts is most likely to have a nonzero balance?

Correct AnswerverifiedShow Answer

The post-closing trial balance differs from the adjusted trial balance in that it does not

Correct AnswerverifiedShow Answer

When the Income Statement columns of the work sheet are initially footed,they should be in balance.

Correct AnswerverifiedShow Answer

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