Question 1

Determine the ending owner's equity of a business having a beginning owner's equity of $4,200, withdrawals of $1,500, and after closing the revenues and expenses Income Summary has a credit balance of $4,750.
$ ________

Accepted Answer

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Question 2

On the basis of the following data taken from the adjusted trial balance columns of the worksheet for the year ended December 31 for Painting the Perfect Picture, journalize the four closing entries in the proper order.

Accepted Answer

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Question 3

From the following accounts, prepare in proper form a post-closing trial balance for Logan's Pet Sitting on December 31. (Note: These balances are before closing).

Accepted Answer

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Question 4

Determine the beginning assets of a business having ending liabilities of $4,000, the liabilities decreased by $1,500 during the year, an ending owner's equity of $10,700, additional investments of $2,000, withdrawals of $15,600, and after closing the revenues and expenses the Income Summary account has a credit balance of $6,800.
$ ________

Accepted Answer

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Question 5

From the following accounts, prepare in proper form a post-closing trial balance for Matison Company on December 31.

Accepted Answer

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Question 6

Which of the following accounts would appear on the post-closing trial balance?
A)Fees Earned
B)Rent Expense
C)Owner's Capital
D)Income Summary

Accepted Answer

Owner's Capital would be the only account that appears on the post-closing trial balance since it is a permanent account that is not closed at the end of the accounting period. Fees Earned and Rent Expense are temporary accounts that get closed to the Owner's Capital account through the Income Summary account during the closing process, and Income Summary is also a temporary account that gets closed to Owner's Capital.

Question 7

What are the major goals of the closing process?

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Question 8

Which of the following sequence of actions describes the proper order in the accounting cycle?
A)Journalize, post, close, prepare financial statements, adjust, and analyze transactions
B)Prepare financial statements, journalize, post, adjust, analyze transactions, close
C)Analyze transactions, journalize, post, adjust, prepare financial statements, close
D)Post, close, prepare financial statements, adjust, analyze transactions, and journalize

Accepted Answer

The proper order of the accounting cycle is to first analyze transactions, then journalize them, post them to the ledger, adjust entries if needed, prepare financial statements, and finally close the books. Option C follows this order correctly.

Question 9

After closing the revenue and expense accounts, Income Summary showed a debit balance of $2,000. Which of the following statements is true?
A)The company had a net loss of $2,000.
B)The company had a net income of $2,000.
C)The company's cash increased $2,000.
D)None of these answers are correct.

Accepted Answer

Income Summary is used to summarize the revenue and expense accounts in a closing process. A debit balance in Income Summary means that the company had more expenses than revenue, resulting in a net loss.

Question 10

The trial balance prepared after all of the temporary accounts have been closed is called a post-closing trial balance.

Accepted Answer

The post-closing trial balance is prepared after all of the temporary accounts (revenue, expense, and dividend accounts) have been closed and the balances have been transferred to the retained earnings account. It only includes permanent accounts (asset, liability, and equity accounts) and serves to verify that the total debits equal the total credits after closing entries have been made.

Question 11

Of the following accounts, which might appear in the adjusted trial balance, but not in the post-closing trial balance?
A)Income Summary
B)Owner's Capital
C)Accounts Payable
D)Depreciation Expense

Accepted Answer

The answer of Of the following accounts, which might appear...

Question 12

The Income Summary account can be found on the worksheet.

Accepted Answer

The Income Summary account is used during the closing process in accounting and does not appear on the worksheet; it is used to transfer the balances of temporary accounts to permanent accounts.

Question 13

Determine the beginning owner's equity of a business having an ending owner's equity of $6,200, withdrawals of $2,250, and after closing the revenues and expenses, the Income Summary account has a debit balance of $3,500.
$ ________

Accepted Answer

The answer of Determine the beginning owner's equity of a...

Question 14

Why will the Income Summary account never appear on a financial statement?

Accepted Answer

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Question 15

The final step in the accounting cycle is:
A)preparing the post-closing trial balance.
B)preparing the financial statements.
C)journalizing the closing entries.
D)journalizing the adjusting entries.

Accepted Answer

The final step in the accounting cycle is preparing the post-closing trial balance. This step occurs after all closing entries have been made and the accounts have been brought to their final balances for the period, ensuring that the ledger is balanced and ready for the next accounting period.

Question 16

In the normal accounting cycle the:
A)financial statements are prepared after the adjusting entries are posted.
B)financial statements are prepared before the adjusting entries are posted.
C)adjusting and closing entries are journalized before the financial statements are prepared.
D)post-closing trial balance is prepared before the closing entries are posted.

Accepted Answer

The answer of In the normal accounting cycle the:
A)financial statements...

Question 17

All closing entries must be posted before preparing the post-closing trial balance.

Accepted Answer

All closing entries must be posted before preparing the post-closing trial balance. This is because the purpose of the post-closing trial balance is to ensure that all temporary accounts have been closed and only permanent accounts remain. The closing entries serve this purpose by transferring the balances of temporary accounts to permanent accounts. Therefore, the closing entries must be posted first before preparing the post-closing trial balance.

Question 18

A summary of selected ledger accounts appear below for S. Ball for the current calendar year.  Answer the following questions.
1. What was the total amount of withdrawals for the year?
2. What was the net income?
3. What was the total revenue?
4. What were the total expenses?

Accepted Answer

The answer of A summary of selected ledger accounts appear...

Question 19

The post-closing trial balance is used to determine if the ledger is in balance after closing.

Accepted Answer

The purpose of the post-closing trial balance is to verify that the ledger is in balance after the closing entries have been made. This ensures that all temporary accounts have been closed and their balances have been transferred to the appropriate permanent accounts. If the post-closing trial balance matches with the adjusted trial balance, it means that the ledger is in balance and all the accounting entries have been properly recorded.

Question 20

The post-closing trial balance contains the true ending figure for Capital.

Accepted Answer

The post-closing trial balance includes only permanent accounts, which do not include the Capital account. The ending figure for Capital is determined after the closing process, which involves closing temporary accounts such as revenue and expenses to the Capital account. Therefore, the post-closing trial balance does not contain the true ending figure for Capital.

Quiz 5: The Accounting Cycle Completed

Determine the ending owner's equity of a business having a beginning owner's equity of $4,200, withdrawals of $1,500, and after closing the revenues and expenses Income Summary has a credit balance of $4,750. $ ________

On the basis of the following data taken from the adjusted trial balance columns of the worksheet for the year ended December 31 for Painting the Perfect Picture, journalize the four closing entries in the proper order.

From the following accounts, prepare in proper form a post-closing trial balance for Logan's Pet Sitting on December 31. (Note: These balances are before closing).

From the following accounts, prepare in proper form a post-closing trial balance for Matison Company on December 31.

Which of the following accounts would appear on the post-closing trial balance?

What are the major goals of the closing process?

Which of the following sequence of actions describes the proper order in the accounting cycle?

After closing the revenue and expense accounts, Income Summary showed a debit balance of $2,000. Which of the following statements is true?

The trial balance prepared after all of the temporary accounts have been closed is called a post-closing trial balance.

Of the following accounts, which might appear in the adjusted trial balance, but not in the post-closing trial balance?

The Income Summary account can be found on the worksheet.

Determine the beginning owner's equity of a business having an ending owner's equity of $6,200, withdrawals of $2,250, and after closing the revenues and expenses, the Income Summary account has a debit balance of $3,500. $ ________

Why will the Income Summary account never appear on a financial statement?

The final step in the accounting cycle is:

In the normal accounting cycle the:

All closing entries must be posted before preparing the post-closing trial balance.

A summary of selected ledger accounts appear below for S. Ball for the current calendar year. Answer the following questions. 1. What was the total amount of withdrawals for the year? 2. What was the net income? 3. What was the total revenue? 4. What were the total expenses?

The post-closing trial balance is used to determine if the ledger is in balance after closing.

The post-closing trial balance contains the true ending figure for Capital.