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Exam 6: Closing Entries and Teh Postclosing Trial Balance

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Question 31

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One purpose of closing entries is to zero out the balances in the:

A) liability and capital accounts.
B) expense and capital accounts.
C) asset and liability accounts.
D) revenue and expense accounts.

E) B) and C)
F) None of the above

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Question 32

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One purpose of closing entries is to:

A) reduce the owner's capital account balance to zero so that the account is ready for the next period.
B) transfer the results of operations to owner's equity.
C) adjust the ledger account balances to provide complete and accurate figures for use on financial statements.
D) close all accounts so that the ledger is ready for the next accounting period.

E) A) and D)
F) C) and D)

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Question 33

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The Income Summary and Meryl Sussman, Capital accounts for Sussman Interior Design Services at the end of its accounting period follow. Complete the following statements. A. Total revenue for the period is ________. B. Total expenses for the period are ________. C. Net income (loss)for the period is ________. D. Owner's withdrawals for the period are ________.

"Closing" is written in the Description column of the individual revenue and expense accounts in the general ledger.

Which of the following accounts will not normally have a zero balance after the closing entries have been posted?

After the transactions have been posted, the next step in the accounting cycle is to:

The first two closing entries to the Income Summary account indicate a debit of $53,000 and a credit of $64,000. The third closing entry would be:

In the closing procedure, the total of the ________ account balances are transferred to the debit side of the Income Summary account.

Select the correct closing entry that ABC Consulting would make to close the owner's drawing account at the end of the accounting period.

Listed below in random order are the steps in the accounting cycle. 1() prepare the financial statements 2() post the journal entries to the ledger 3() record journal entries 4() prepare a trial balance What is the proper order of these steps?

The temporary owner's equity accounts are closed because they apply to only one accounting period.

The trial balance is prepared to make sure that the general ledger is in balance after adjusting and closing entries have been recorded and posted.

The balance of the Income Summary account is transferred to the ________ account.

Which of the following accounts would not be involved in any of the closing entries?

On December 31, the ledger of Hartley Engineering Company contained the following account balances: All the accounts have normal balances. Journalize the closing entries. Use 6 as the general journal page number. (Note: if you want the accounts to be in alpha order, they need to be re-arranged.)

The postclosing trial balance lists only the ________ accounts.

Use the following account balances from the adjusted trial balance of ABC Consulting: Select the correct closing entry that ABC Consulting would make to close their expense account(s) at the end of the accounting period.

A compound entry in the general journal is made to close expense accounts.

The entry to transfer a net loss to the owner's capital account would include:

The firm had net income if the entry to close the Income Summary account is recorded as a________ to the owner's capital account.