FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 13: Financial Statements and Closing Procedures

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 31

Essay

Review LaterAdd Note

Review Later

The data below concerns adjustments to be made at the Tyson Company. Record the adjusting entries on page 12 of a general journal as of December 31, 2013. On the same page of the general journal, record the reversing entries as of January 1, 2014. Include descriptions. Adjustment data: (a) On October 1, 2013, the firm paid rent of $18,000 in advance for a 6-month period. (b) A total of $15,000 should be recorded as depreciation of equipment for 2013. (c) On December 31, 2013, the firm owed salaries of $12,000 that will not be paid until January 2014. (d) On December 31, 2013, the firm owed the employer's social security (6.2%) and Medicare (1.45%) taxes on all of the accrued salaries.

Correct Answer

verified

Show Answer

Question 32

True/False

Review LaterAdd Note

Review Later

After all adjusting entries are posted, the balances of the general ledger accounts should match the amounts shown in the Adjusted Trial Balance section of the worksheet.

A) True
B) False

Correct Answer

verified

Show Answer

Question 33

Multiple Choice

Review LaterAdd Note

Which of the following accounts will appear on the postclosing trial balance?

Which of the following statements is correct?

Interest on notes payable would be listed in the Other Income section of a classified income statement.

Which of the following statements is not correct?

If the Income Summary account has a credit balance after revenues, and expenses are closed, the firm had a net income for the fiscal period.

Teresa Davis is the owner of a convenience shop. The firm had a net income of $4,500 for the year. What accounts are debited and credited to transfer the net loss to the owner's capital account during the closing process?

Cash, items that will normally be converted to cash within one year, and items that will be used up within one year are called ____________________ assets.

A reversing entry should not be made for an adjusting entry to record

For the current fiscal year, Purchases were $166,000, Purchase Returns and Allowances were $3,000 and Freight In was $12,000. If the beginning merchandise inventory was $110,000 and the ending merchandise inventory was $75,000, the Cost of Goods Sold is:

Which of the following is not a section on a Classified Balance Sheet?

Current assets are usually listed on a balance sheet in order of liquidity.

Which of the following accounts is not closed?

The adjusted trial balance data given below is from the Bennett Company's worksheet for the year ended December 31, 2013. The firm had net income of $100,000 for the year. Prepare a statement of owner's equity for the year. No additional investments were made during the period. $\begin{array}{l}\text { ADJUSTED TRIAL BALANCE }\\\begin{array} { | l | r | r | } \hline { \text { ACCOUNT NAME } } & \text { DEBIT } & { \text { CREDIT } } \\\hline \text { Ben Bennett, Capital } & & 122,000 \\\hline \text { Ben Bennett, Drawing } & 30,000 & \\\hline\end{array}\end{array}$

A classified income statement showed net sales of $870,000, cost of goods sold of $376,000, and total operating expenses of $330,000 for the fiscal year ended December 31, 2013. 1. What was the gross profit on sales? 2. What was the net income from operations?

An adjusting entry was made for accrued salaries of $600 at the end of 2013. The adjusting entry was then reversed. To record the first payroll of 2014, which totaled $1,500, Salaries Expense should be debited for ____________________.

The beginning capital balance shown on a statement of owner's equity is $43,000. Net income for the period is $18,000. The owner withdrew $22,000 cash from the business and made no additional investments during the period. The owner's capital balance at the end of the period is

A company reported gross profit of $85,000, total operating expenses of $40,000 and interest income of $2,500. What is the income from operations?

On a classified balance sheet, Accounts Payable would appear in the ____________________ section.