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Exam 5: Closing Entries and the Post-Closing Trial Balance Including Appendix

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Question 51

Multiple Choice

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The entry to close expenses would involve (a)

A) debit to Income Summary
B) debit to drawing.
C) credit to net income.
D) debits to expense accounts.

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

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Question 52

Multiple Choice

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The entry to close Income Summary, assuming a net loss, would involve a

A) credit to cash.
B) debit to net income.
C) credit to Income Summary.
D) credit to capital.

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

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Question 53

Multiple Choice

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Financial statements prepared during the fiscal year for periods of less than twelve months are called

The adjusted balances for Tomas Co. are listed below. Cash, $20,000 Accounts Receivable, $2,500 Prepaid Insurance, $3,500 Equipment, $15,000 Accumulated Depreciation, $2,000 Accounts Payable, $4,000 J.Tomas, Capital, $30,000 J.Tomas, Drawing, $10,000 Income from Services, $35,000 Wages Expense, $12,000 Rent Expense, $8,000 The entry to close the drawing account would involve a

Boulder Co. uses the accrual basis of accounting. Boulder Co. receives cash from customers in October for services to be performed in December. Which of the following is true?

If the totals of the post-closing trial balance are not equal, the first step in tracking down the error is to verify postings to the ledger.

What is the first step in the closing process?

In preparing the first two closing entries, to which of the following columns of the work sheet does one refer?

The first step in the closing process is to close the _____________ account(s) into the ___________ account(s) .

The balance in the owner's Capital account is closed to the owner's Drawing account.

If L. Green's total revenue for the year was $38,000 and total expenses were $30,000, the third closing entry would be

Closing entries are posted to the work sheet, but not to the general ledger.

The adjusted balances for Tomas Co. are listed below. Cash, $20,000 Accounts Receivable, $2,500 Prepaid Insurance, $3,500 Equipment, $15,000 Accumulated Depreciation, $2,000 Accounts Payable, $4,000 J.Tomas, Capital, $30,000 J. Tomas, Drawing, $10,000 Income from Services, $35,000 Wages Expense, $12,000 Rent Expense, $8,000 The entry to close revenue would involve a

Which of the following accounts in the ledger will ordinarily appear in the post-closing trial balance?

Match the terms that follow with the correct definitions. -Accounts that belong to only one fiscal year and are closed out at the end of each fiscal year

The purpose of the post-closing trial balance is to make sure the debit balances equal the credit balances before the closing process.

Which of the following are all temporary accounts?

Below is an alphabetical list of accounts of Master Cleaners as of December 31, after all adjusting entries have been posted. Instructions: 1. Journalize the four closing entries in the proper order. 2. Record the account balances in t-accounts for owner's equity, revenue, and expense accounts. Post the closing entries in these t-accounts using number 1 through 4. 3. Prepare a post-closing trial balance.

Closing entries may be prepared from the ledger or the work sheet.

Match the terms that follow with the correct definitions. -Accounts that are not closed out at the end of each fiscal year