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Exam 6: Closing Entries and the Postclosing Trial Balance

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Question 31

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

A) prepare the financial statements.
B) prepare the postclosing trial balance.
C) prepare the worksheet.
D) journalize and post the adjusting entries.

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Question 32

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Which of the following statements is not correct?

A) If the postclosing trial balance does not balance, there are errors in the accounting records.
B) The audit trial should be used to trace data through the accounting records to find and correct errors.
C) The balance of the owner's capital account, as reflected on the postclosing trial balance, will match the amount reported on the income statement.
D) The balance of the owner's capital account on the adjusted trial balance will usually be different than that reported on the postclosing trial balance.

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Question 33

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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.

The partial worksheet for the Jamison Company showed the following data on October 31, 2013. Record the closing entries on page 6 of a general journal.

The entry to close the owner's drawing account would include a debit to the

During the closing process, Accumulated Depreciation--Equipment will

After the closing entries are posted, the balance of the owner's capital account agrees with the amount of owner's equity shown on the balance sheet for the period.

The adjusted ledger accounts of RD Consulting on December 31, 2013, appear as follows. All accounts have normal balances and adjusting entries have been made. Extend the balances to the Balance Sheet and Income Statement columns of the worksheet. Then, journalize the closing entries on page 4 of a general journal.

After the worksheet has been completed, the next step in the accounting cycle is to

All of the following accounts will appear on the postclosing trial balance except

The owner's capital account is closed at the end of each accounting period.

The revenue account Fees Income is closed by debiting

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

From the following list identify the accounts that will appear on the postclosing trial balance by placing an X before those accounts. A. Cash B. Accounts Receivable C. Supplies D. Equipment E. Accumulated Depreciation F. Accounts Payable G. Jane Nelson, Capital H. Jane Nelson, Drawing I. Fees Income J. Depreciation Expense K. Salaries Expense L. Supplies Expense M. Utilities Expense

Following are the steps in the accounting cycle. Arrange the steps in the proper sequence. A. Analyze transactions. B. Interpret the financial information. C. Journalize the transactions. D. Post the journal entries. E. Prepare a postclosing trial balance. F. Prepare financial statements. G. Prepare a worksheet. H. Record adjusting entries. I. Record closing entries.

The ____________________ entries transfer the results of operations to owner's equity.

After the closing entries are posted to the ledger, each revenue account will have

"After-closing trial balance" is another name for the postclosing trial balance.

If the Income Summary account has a debit balance before it is closed, the firm experienced a net ____________________ from operations.

The asset, liability, and owner's capital accounts appear on all of the following except the