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Title: Question 1
QA_Ori:
The four-step closing entry process is: (i) close the revenue (and gain) accounts to the
Title: Question 2
QA_Ori:
Closing entries affect temporary accounts: revenues, expenses, withdrawals, and income
summary. Specifically, closing entries at the end of an accounting period prepare the
Title: Question 3
QA_Ori:
(i) Closing entries prepare the temporary accounts—revenue and expense (and gain and
Title: Question 4
QA_Ori:
The Income Summary account is used to summarize the period’s revenues and expenses.
Title: Question 5
QA_Ori:
Yes, an error would have occurred because a post-closing trial balance should only
Title: Question 6
QA_Ori:
A work sheet can be used to collect and organize data for preparing (i) adjusting entries,
Title: Question 7
QA_Ori:
The adjustments in the Adjustments columns of a work sheet are identified by letters to
Title: Question 8
QA_Ori:
A company’s operating cycle is the normal time between paying cash for merchandise
Title: Question 9
QA_Ori:
Assets on a typical classified balance sheet include current assets and noncurrent assets—
Title: Question 10
QA_Ori:
Title: Question 11
QA_Ori:
Title: Question 12
QA_Ori:
Reversing entries simplify subsequent entries for accrued expenses and accrued revenues
Title: Question 13
QA_Ori:
The following reversing entry could be made as of the first day of the next accounting
Title: Question 14
QA_Ori:
The five main categories of noncurrent assets on Polaris’s balance sheet are: Property and
Title: Question 15
QA_Ori:
KTM’s current assets are: Liquid assets; Accounts receivable – trade to third parties;
Title: Question 16
QA_Ori:
Title: Question 17
QA_Ori:
The closing entry likely recorded on December 31, 2011, to transfer the company’s net
income to its Retained Earnings account would likely have been (in thousands of Euro):
Title: Quick Study 4-1
QA_Ori:
1. Permanent accounts report on activities related to one or more future
accounting periods, and they carry their ending balances into the next period.
Title: Quick Study 4-2
QA_Ori:
1. (e) Analyzing transactions and events.
2. (h) Journalizing transactions and events.
3. (a) Posting the journal entries.
Title: Quick Study 4-3
QA_Ori:
1. B
2. F
Title: Quick Study 4-4
QA_Ori:
Current assets
Cash............................................................. $ 7,000
Accounts receivable..................................... 18,000
Current liabilities
Title: Quick Study 4-5
QA_Ori:
a. 5 d. 3
Title: Quick Study 4-6
QA_Ori:
a. BS d. IS
Title: Quick Study 4-7
QA_Ori:
CLAUDELL COMPANY
Work Sheet
Unadjusted
Trial Balance
Adjustments
Adjusted
Trial Balance
Income
Statement
Balance Sheet
Account Title Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Prepaid Rent................... 1,000 (a) 200 800
Services Revenue............ 55,60
0
(b) 900 56,50
0
56,500
Title: Quick Study 4-8
QA_Ori:
Computation of B. Warton, Capital for the Dec. 31, 2013, balance sheet
Title: Quick Study 4-9
QA_Ori:
Dec. 31 Services Revenue 13,000
Income Summary
13,00
0
To close the revenue account.
Title: Quick Study 4-10
QA_Ori:
The only account from QS 4-9 that would appear in post-closing trial balance is
D. Mai, Capital.
Title: Quick Study 4-11A
QA_Ori:
2013
Jan. 1 Management Fees Earned
12,00
0
12,00
Title: Quick Study 4-12
QA_Ori:
Title: Exercise 4-1
QA_Ori:
Closing entries
1 Services Revenue 401
76,00
0
2 Income Summary 901
47,80
0
Depreciation Expense 603 15,000
3 Income Summary 901
28,20
0
4 M. Muncel, Capital 301
22,00
0
Posted ledger accounts
M. Muncel, Capital No. 301 Salaries Expense No. 622
Date PR Debit Credit Balance Date PR Debit Credit Balance
M. Muncel, Withdrawals No. 302 Insurance Expense No. 637
Date PR Debit Credit Balance Date PR Debit Credit Balance
Services Revenue No. 401 Rent Expense No. 640
Date PR Debit Credit Balance Date PR Debit Credit Balance
Depreciation Expense No. 603 Income Summary No. 901
Date PR Debit Credit Balance Date PR Debit Credit Balance
Posted ledger accounts
