Assuming the following Adjusted Trial Balance, re-create the Post-Closing Trial Balance that would result after all closing journal entries were made and posted:

$$\begin{array}{c} \textbf{Adjusted Trial Balance} \end{array}$$

$$\begin{array}{lcc} &\textbf{Debit}&\textbf{Credit}\\[5pt] \text{Cash}&\text{\$\hspace{5pt}5,450}\\ \text{Accounts Receivable}&\text{\hspace{10pt}4,700}\\ \text{Supplies}&\text{\hspace{18pt}250}\\ \text{Prepaid Insurance}&\text{\hspace{10pt}1,250}\\ \text{Salaries Payable}&&\text{\$\hspace{13pt}650}\\ \text{Common Stock}&&\text{\hspace{10pt}5,000}\\ \text{Retained Earnings}&&\text{\hspace{18pt}750}\\ \text{Dividends}&\text{\hspace{10pt}1,400}\\ \text{Service Fee Revenue}&&\text{\hspace{5pt}17,300}\\ \text{Salaries Expense}&\text{\hspace{10pt}9,050}\\ \text{Supplies Expense}&\text{\hspace{10pt}1,000}\\ \text{Insurance Expense}&\underline{\text{\hspace{18pt}600}}&\underline{\text{\hspace{34pt}}}\\ &\underline{\underline{\text{\$\hspace{1pt}23,700}}}&\underline{\underline{\text{\$\hspace{1pt}23,700}}}\\ \end{array}$$

Identify which of the following accounts would not be listed on the company’s Post-Closing Trial Balance.

Accounts payable            $19,000
Advertising expense          23,760
Cash                         55,332
Common stock                 38,000
Dividends                     9,000
Fee revenue                  60,000
Prepaid insurance            21,466
Land                         45,000

Which account would be credited when closing the account for rent expense for the year?

A. Prepaid Rent

B. Rent Expense

C. Rent Revenue

D. Unearned Rent Revenue

After the first two closing entries are made, Income Summary has a debit balance of $22,750. What does this indicate about the company’s net income or loss?

The following Post-Closing Trial Balance contains errors. Prepare a corrected Post-Closing Trial Balance:

$$\begin{array}{c} \textbf{Post-Closing Trial Balance} \end{array}$$

$$\begin{array}{lcc} &\textbf{Debit}&\textbf{Credit}\\[5pt] \text{Cash}&&\text{\$\hspace{1pt}32,660}\\ \text{Supplies}&\text{\$\hspace{5pt}7,200}\\ \text{Land}&&\text{\hspace{5pt}25,000}\\ \text{Notes Payable}&\text{\hspace{5pt}47,700}\\ \text{Common Stock}&&\text{\hspace{10pt}7,000}\\ \text{Retained Earnings}&\underline{\text{\hspace{34pt}}}&\underline{\text{\hspace{5pt}10,160}}\\ &\underline{\underline{\text{\$\hspace{1pt}54,900}}}&\underline{\underline{\text{\$\hspace{1pt}74,820}}}\\ \end{array}$$

Which of the following accounts is considered a temporary or nominal account?

A. Fees Earned Revenue

B. Prepaid Advertising

C. Unearned Service Revenue

D. Prepaid Insurance

Assume you are the controller of a large corporation, and the chief executive officer (CEO) has requested that you refrain from posting closing entries at 20X1 year-end, with the intention of combining the two years’ profits in year 20X2, in an effort to make that year’s profits appear stronger.

Write a memo to the CEO, to offer your response to the request to skip the closing entries for year 20X1.

Explain what is meant by the term real accounts (also known as permanent accounts).

Explain what is meant by the term real accounts (also known as permanent accounts).

The May cash records of Dickson Insurance follow:

$$\begin{array}{lllll} \hline \text{Cash Receipts}&&\text{Cash payments}\\ \text{Date}&\text{Cash Debit}&\text{Check No.}&\text{Cash Credit}\\ \hline \text{May 4}&\$4,150&1416&\$850\\ \quad9&540&1417&160&\\ \quad14&540&1418&670&\\ \quad17&2,190&1419&1,690&\\ \quad31&1,870&1420&1,450&\\ \quad&&1420&1,200&\\ \quad&&1422&640&\\ \hline \end{array}$$

Dickson’s Cash account shows a balance of $16,650 at May 31. On May 31, Dickson received the following bank statement:

$$\begin{array}{lrrr} \text{Bank Statement for May}\\ \text{Beginning balance}&&&\$ 14,000\\ \text{Deposits and other Credits:}&&&\\ \text{May 1}&EFT&\$200&\\ \text{5}&&4,150&\\ \text{10}&&540&\\ \text{15}&&560&\\ \text{18}&&2,190&\\ \text{22}&BC&1,700&9,340\\ \text{Checks and other Debits:}&&&\\ \text{May 8}&NSF&\$300&\\ \text{11 (check no. 1416)}&&850&\\ \text{19}&EFT&400&\\ \text{22 (check no. 1417) }&&160&\\ \text{29 (check no. 1418) }&&670&\\ \text{31 (check no. 1419)}&&1,960&\\ \text{31}&SC&10&(4,750)\ \text{Ending Balance}&&&\$18,590\\ \text{}&&&\\ \hline \end{array}$$

Additional data for the bank reconciliation follow: a. The EFT deposit was a receipt of rent. The EFT debit was an insurance payment. b. The NSF check was received from a customer. c. The $\$ 1,700$ bank collection was for a note receivable. d. The correct amount of check number 1419 for rent expense is $\$ 1,960$. Dickson's controller mistakenly recorded the check for $\$ 1,690$. Requirements

1. Prepare the bank reconciliation of Dickson Insurance at May 31, 2012.
2. Journalize any required entries from the bank reconciliation.

From the following Company S adjusted trial balance, prepare the following:

C. Balance Sheet (simple—unclassified)

$$\begin{array}{c} \textbf{Adjusted Trial Balance} \end{array}$$

$$\begin{array}{lcc} &\textbf{Debit}&\textbf{Credit}\\[5pt] \text{Cash}&\text{\$\hspace{5pt}55,200}\\ \text{Accounts Receivable}&\text{\hspace{10pt}30,200}\\ \text{Prepaid Insurance}&\text{\hspace{15pt}6,000}\\ \text{Land}&\text{\hspace{10pt}30,000}\\ \text{Accounts Payable}&&\text{\$\hspace{5pt}14,300}\\ \text{Salaries Payable}&&\text{\hspace{15pt}6,100}\\ \text{Common Stock}&&\text{\hspace{10pt}26,000}\\ \text{Retained Earnings}&&\text{\hspace{10pt}38,900}\\ \text{Dividends}&\text{\hspace{10pt}16,500}\\ \text{Service Revenue}&&\text{\hspace{5pt}211,850}\\ \text{Insurance Expense}&\text{\hspace{10pt}24,000}\\ \text{Salaries Expense}&\text{\hspace{5pt}128,350}\\ \text{Miscellaneous Expense}&\underline{\text{\hspace{15pt}6,900}}&\underline{\text{\hspace{39pt}}}\\ &\underline{\underline{\text{\$\hspace{1pt}297,150}}}&\underline{\underline{\text{\$\hspace{1pt}297,150}}}\\ \end{array}$$

Use Table discussed earlier to find the annual premium of each of the following life insurance policies:

$$\begin{array}{} \begin{array}{}\text{Sex} \end{array}& \begin{array}{}\text{Age} \end{array}& \begin{array}{}\text{Policy type}\end{array}& \begin{array}{}\text{Rate classification} \end{array}& \begin{array}{}\text{Face Value}\end{array}& \begin{array}{}\text{Annual premium}\end{array}&\\ \text{Female}&30&\text{Whole-life}&\text{NT}&\$200,000 \end{array}$$

Grant Company has the following post-closing trial balance on December 31, 2016:

$$\begin{array}{c} &\textbf{GRANT COMPANY}\\ &\textbf{Post-Closing Trial Balance}\\ &\textbf{December 31, 2016}\\ \end{array}$$

$$\begin{array}{lrr} \textbf{Account}&\textbf{Debit}&\textbf{Credit}\\ \text{Cash}&\$26,000&\\ \text{Accounts receivable}&19,000&\\ \text{Merchadise Inventory}&16,500&\\ \text{Prepaid Insurance}&16,500&\\ \text{Equipment and Fixtures}&56,000&\\ \text{Accumulated Depreciation}&&\$15,000\\ \text{Accounts Payable}&&16,000\\ \text{Common Stock}&&17,000\\ \text{Retained Earnings}&&\underline{64,975}\\ \text{Totals}&\$119,100&\$119,100\\ \hline\hline \end{array}$$

The company's accounting department has gathered the following budgeting information for the first quarter of 2017:

$$\begin{array}{lr} \hline \text { Budgeted total sales, all on account } & \$ 121,200 \\ \text { Budgeted purchases of merchandise inventory, all on account } & 60,900 \\ \text { Budgeted cost of goods sold } & 60,600 \\ \text { Budgeted selling and administrative expenses: } & \\ \text { Commissions expense } & 6,060 \\ \text { Salaries expense } & 8,000 \\ \text { Rent expense } & 4,800 \\ \text { Depreciation expense } & 400 \\ \text { Insurance expense } & 200 \\ \text { Budgeted cash receipts from customers } & 127,960 \\ \text { Budgeted cash payments for merchandise inventory } & 67,675 \\ \text { Budgeted cash payments for salaries and commissions } & 15,243 \\ \text { Budgeted income tax expense } & 4,800 \\ \hline \end{array}$$

Additional information: Rent and income tax expenses are paid as incurred. Insurance expense is an expiration of the prepaid amount. Requirements

1. Prepare a budgeted income statement for the quarter ended March 31, 2017.
2. Prepare a budgeted balance sheet as of March 31, 2017.
3. Prepare a budgeted statement of cash flows for the quarter ended March 31, 2017.

A physician performs medical services for a patient on October 20; the total bill for the medical services was $200. The patient makes a co-pay of$20 on October 20, and the insurance company pays the remaining balance of $180 on November 19. On what date(s) will the physician record the revenue for those medical services provided on October 20?

a.$200 of revenue on October 20 b. $20 of revenue on October 20 and$180 of revenue on November 19 c. $200 of revenue on November 19 d.$180 of revenue on October 20 and the remaining $20 on November 19