Chapters 6, TEST 6A
Chapter 6, TEST 6A
Name _________________________
Date _________________________
SCORING RECORD
| |Total Possible | |Student |
|Section | |Deductions |Score |
|A |30 | | |
|B |30 | | |
|C |10 | | |
|D |30 | | |
|Total |100 | | |
Section A
DIRECTIONS: Each of the following statements is true or false. Indicate your choice by writing in the Answers column T for a true answer or F for a false answer. (2 points for each correct answer)
For
Answers Scoring
1. If there are no additional investments, the Balance
Sheet supplies all the necessary information to
prepare the financial statements. _____ _____
2. An Income Statement summarizes revenue, expenses
and owners withdrawals. _____ _____
3. The Balance Sheet columns of the work sheet
provide all of the information needed to prepare
a Statement of Owner's Equity unless there are
additional investments. _____ _____
4. Current assets include cash and assets that
will be converted into cash within one year. _____ _____
5. Long-term liabilities are liabilities that
require the use of current assets. _____ _____
6. The amounts in the financial statements must
agree with the ledger account balances. _____ _____
7. A classified balance sheet groups similar items
together. _____ _____
8. Revenues, expenses, and drawing accounts are
permanent accounts. _____ _____
9. Temporary accounts accumulate information
across accounting periods. _____ _____
10. Closing entries are made in the journal and
posted to the ledger accounts. _____ _____
11. To close a revenue account with a credit
balance, debit the account for its balance and
credit the income summary account. _____ _____
12. The income summary account appears on the income
statement at the end of the accounting period. _____ _____
13. Adjusting entries must be recorded and posted
before closing entries. _____ _____
14. The steps involved in accounting for business
activities during an accounting period is
referred to as the accounting cycle. _____ _____
15. After posting the closing entries, a post-
closing trial balance should be prepared. _____ _____
Section B
Directions: Complete each of the following statements by writing in the Answers column the letter of the word or words that correctly completes each statement. (3 points each)
For
Answers Scoring
1. The body of the balance sheet consists of an
itemized list of: (A) assets and liabilities;
(B) assets and owner's equity; (C) cash and
revenues; (D) revenues and expenses;
(E) assets, liabilities, and owner's equity. _____ _____
2. The owner's equity in a business amounted to
$10,000 at the beginning of the year; $15,000
at the end of the year; and the owner had
withdrawn $25,000 and made no additional
investments during the year. The net income
for the year amounted to: (A) $10,000;
(B) $15,000; (C) $25,000; (D) $30,000;
(E) $40,000. _____ _____
3. The revenue for the month amounted to $30,000,
total expenses amounted to $17,500, and
withdrawals totaled $4,500. The net income
for the month is: (A) $4,500; (B) $8,000
(C) $12,500; (D) $17,500; E) $30,000. _____ _____
4. The statement of owner's equity includes
information based on: (A) the capital and
drawing accounts; (B) the liabilities of the
business; (C) the amount of net income or net
loss; (D) A and C; (E) B and C. _____ _____
5. After the accounts are closed and the journal
entries have been posted, the following account
would have a balance: (A) Payroll Tax Expense;
(B) Accumulated Depreciation; (C) Professional Fees;
(D) Drawing; (E) Sales. _____ _____
6. The account to which the Income Summary account is
closed is called: (A) Revenue; (B) Drawing;
(C) Capital; (D) Cash; (E) Cost. _____ _____
7. The journal entry to close the drawing account
includes: (A) debiting the Income Summary and
crediting the Drawing account; (B) debiting the
Capital and crediting the Drawing account;
(C) crediting the Capital account and debiting
the Drawing account; (D) debiting the Drawing
account and crediting the Income Summary;
(E) debiting Cash and crediting the Drawing
account. _____ _____
8. What is the correct sequence for closing the
temporary accounts? (A) revenue accounts,
expense accounts, Income Summary, Drawing;
(B) expense accounts, revenue accounts, Income
Summary, Drawing; (C) revenue accounts, expense
accounts, Drawing, Income Summary; (D) Drawing,
revenue accounts, expense accounts, Income
Summary; (E) Net Income, Drawing, Income Summary. _____ _____
9. To prove the equality of the debit and credit
balances in the general ledger accounts after
the closing entries have been journalized and
posted the following is prepared: (A) Trial
Balance; (B) Balance Sheet; (C) Closing
Statement; (D) Post-closing trial balance;
E. (E) Work Sheet. _____ _____
10. What is the purpose of the post-closing trial
balance? (A) to prove no errors were made
while recording entries in the journal; (B)
to prove the closing entries were recorded
correctly in the journal; (C) to prove the
equality of the debit and credit balances in
the general ledger accounts; (D) to prove the
balances in the general ledger accounts are
correct; (E) none of these. _____ _____
Section C
DIRECTIONS: Indicate which of the following ledger accounts are temporary, using T, or permanent using P. (2 points each)
For
Answers Scoring
A. Accounts Payable _____ _____
B. S. Jones, Drawing _____ _____
C. Income Summary _____ _____
D. Sales _____ _____
E. Insurance Expense _____ _____
Section D
DIRECTIONS: Using the following T accounts, prepare closing entries in general journal form dated July 31, 20__. Then post the closing entries to the T accounts.
Accum. Depreciation Wages Utilities
Computer Equipment 181.1 Expense 511 Expense 533 Bal. 480 Bal. 8,700 Bal. 398
Wages Advertising Insurance
Payable 219 Expense 512 Expense 535
Bal. 3,100 Bal. 141 Bal. 460
Clyde Gray, Rent Gas and Oil
Capital 311 Expense 521 Expense 538
Bal. 25,000 Bal.4,100 Bal. 367
Clyde Gray, Supplies Deprec. Exp.-
Drawing 312 Expense 523 Computer Equip. 541
Bal. 3,000 Bal. 950 Bal. 480
Income Telephone Miscellaneous
Summary 313 Expense 525 Expense 549
Bal. 544 Bal. 400
Service
Fees 401
Bal.15,820
GENERAL JOURNAL
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