Jour enya Posty Ajusting aid Closing Cai Prepining a Post-Clasig nat Kaka Aualycing Adjusting and Closing Flr TEST A ‘aa ehamler| 5 ce 8 ae He py Ww OPE 10 D4 -& — Practices Part One—Identifying Accounting Concepts and show whether cach of the following, statements is true or false, period (o summarize the general ledger ‘counting, 1 ring a work sheet at the endl of each fise information needed to prepare financial statements isan application of the concept Accounting Period Cycle. 2. Asource document is prepared for adjusting entries 3. The ending account balances of permanent accounts for one fiscal period are the beginning account balances for the next fiscal period. 4. At the end of a fiscal period, the balances of temporary accounts are summarized and transferred to the owner's capital account. ach fiscal period with a zero balance. 5. Temporary accounts must start fiscal period are closing, 6. Journal entries used to prepare temporary accounts for a ne entries. 7. To close a temporary account, an amount equal to its balance is recorded in the account on the side opposite to its balance. 8. The income summary account has a normal debit balance. 9. The balances of the expense accounts must be reduced to zero to prepare the accounts for the next fiscal period. 10. The drawing account is a permanent account. 11. The capital account's new balance after all closing entries are posted is verified by checking it with the amount of capital shown on the balance sheet at the end of the fiscal period. 12. A post-closing trial balance verifies the equality of debits and credits in a general ledger after the closing entries are posted. Chaprer Test A © South-Western Cengage Learning Answers iT ary “Ey ‘EyWUTG Sa EAT T TORO IN OW A WT UTA TS i I BND TG] le ONS SAG T_Fl OR TA Is “ke DUO IE TG TIO a T TRESS HOI) ION PU I. aq FURS RN 1G) oul | LITER loeg]_ | SHOOT LOW) —| | WInSs THY i TWNUNOT Chapter 8—Test A Century 21 Accounting, 9th EditionName Part Two—Journalizing and Posting Adjusting and Closing Entries nee October 31 af the Jenkins Company's partial work sheet fur the mont: current year is piven below, 1, Use page 3 of the journal on page 2 of this test. Journalize andl post the adjusting entries. The general ledger accounts are on pages 4 aad 5 2. Continue using, page 3 of the journal and journalize and post the closing, entries _Jenkins Company Work Sheet Cash 10) 2Jafofoo| sto} Supplies ca)fefolofoo| @b:folefoo| sfefahoo Prepaid Insuray 1p fojooo] ‘Accts. Pay. Martin Jenkins, Capital 10so}s oo ¢[ Martin Jenkins, Drawing [Income Summary | of sates [ [cobslltoo| +] insurance Expense tc] Miscellaneous Expense [supplies Expense || aletdfoo 137]3Io]00|_11|7/Is\00| aloh}s of Net income sels ilelers 13[1\0)00]|_13)71:Jol00} «| Part Three—Preparing a Post-Closing Trial Balance Directions: Use the form on page 5 of this et to prepare a postclosng trial balance for Jenkins Company. Chapter 8—Test A © South-Western Cengage Learning