- Determine if the following accounts are considered temporary or permanent.
a. Investment in Securities
b. Rental Revenue
c. Unearned Revenue - Prepare the closing entry for Happy Smiles Corp. who had Sales Revenue of $55,200 and Interest Revenue of $4,200.
- Happy Smiles Corp. incurred rental expenses of $17,500, salaries expenses of $18,950, utilities expenses of $7,800, and interest expenses of $750. Prepare the closing entries for these expenses.
- Given the information in Exercises 2 and 3, close the income summary account. Also prepare the closing entry for Christian Coco’s drawing account, which had a balance of $8,900.
- Identify which items are steps in the accounting cycle.
a. Post transactions to the ledger.
b. Prepare an adjusted trial balance.
c. Ensure transactions are authorized by the shareholders.
d. Prepare a post-closing trial balance. - Which steps in the accounting cycle are missing from the following list: Prepare financial statements, analyze transactions and record in the journal, journalize and post adjusting entries, prepare an adjusted trial balance, post transactions to the ledger, and assemble and analyze adjustment data?
- Put the following steps from the accounting cycle in order, including any missing steps and omitting any that are not a step in the accounting cycle. Prepare an end-of-period spreadsheet, post transactions to the ledger, prepare financial statements, prepare a post-closing trial balance, calculate ratios to analyze the financial statements, and journalize and post the closing entries.
- Prepare the adjusting entries for each situation for Sibley Co, which began operations on September 1, 2015.
a. The company records a $1,750 depreciation expense on machinery.
b. Upon inception, the company received $21,000 for one-year membership revenues. The company also has a calendar year-end.
c. The company’s attorney, who bills at $42 per hour and agrees to bill Sibley Co. upon settlement, spent 45 hours on a legal issue. He expects the issue to be resolved in March of the following year. - Prepare the closing entries for Sibley Co. in each independent situation.
a. The company earned membership revenues of $5,200 and rental revenue of $6,200.
b. The company incurred start-up expenses of $1,550, wage expenses of $3,400, utilities expenses of $1,900, and miscellaneous expenses of $600.
c. Sibley Co. incurred a net loss of $4,650 during its first year. - Prepare Sibley Co.’s post-closing trial balance. The company’s accounts on December 31, 2015 include: Cash, $900; Notes Payable, $965; Accounts Receivable, $1,500; Accounts Payable, $2,900; Janice Sibley, Capital, $2,185; Accrued Expenses, $2,400; Prepaid Expenses, $1,275; Machinery, $4,000, with $890 accumulated depreciation; and Land, $1,665.
- Franco Corporation began operations on August 1, 2015. The company adopts a fiscal year that begins September 1.
a. When does the company’s first fiscal year occur?
b. When is the second fiscal year? - Ripa Co. adopts a fiscal year that ends March 31. It begins operations on August 1, 2015.
a. When does the company’s first fiscal year occur?
b. When is the second fiscal year? - Dillman Pickle incorporates on July 2, 2015 and adopts a calendar year end. a. When does the company’s first fiscal year occur? b. When is the second fiscal year?
- Given the following amounts, calculate the working capital.
a. Current assets of $480 and current liabilities of $285.
b. Total assets of $5,090, long-term assets of $2,050, total liabilities of $3,500, and current liabilities of $2,200.
c. Total assets of $8,450, long-term assets of $2,600, long-term liabilities of $2,200, and owner’s equity of $1,500. - With the following amounts, calculate the company’s current ratio, rounding to two decimal places. Compare the ratios in each situation to determine which has the strongest position.
a. Current assets of $17,500 and current liabilities of $13,050
b. Total assets of $22,780, fixed assets of $5,760, and current liabilities of $16,900
c. Total liabilities of $17,900, current assets of $10,980, and long-term debt of $10,200 35.
Calculate Bixby Corporation’s current ratio with the following information, rounding to two
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