4

Completing the
Chapter

Accounting Cycle

Financial
and
Managerial
Accounting
14e

Warren
Reeve Instructor: Nguyễn Thị Kim Hương - Hoàng Anh Thư
Duchac Cell: 0983.501512 0994.183.363
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Content: sinh viên tự làm bài tập và nộp cho
giảng viên
Doing exercises and problems:
1. BE 4.2, 4.4/ P201
2. EX 4.3/ P 202
3. EX 4.4, 4.5, 4.6/ P 203
4. EX 4.14, 4.17/ P 206
5. PR 4.1 A, 4.2A/ P212
6. PR 4.3A/ P 213

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Objectives

1. Prepare financial statements

2. Prepare closing entries
3. Prepare post closing trial balance

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Problem in Group 1

Taser Consulting is a consulting firm owned and

operated by Annamarie Phipps. The following
end-of-period spreadsheet was prepared for the
year ended October 31, 2018:

Based on the preceding spreadsheet, prepare an

income statement, retained earnings statement,
and balance sheet for Taser Consulting.

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Problem in Group 1

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Discussion question 1

After the accounts have been adjusted at April 30, the end
of the fiscal year, the following balances were taken from
the ledger of Nuclear Landscaping Co.:
Retained Earnings $643,600
Dividends 10,500
Fees Earned 356,500
Wages Expense 283,100
Rent Expense 56,000
Supplies Expense 11,500
Miscellaneous Expense 13,000
Journalize the four entries required to close the accounts.

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Discussion question 2

Identifying permanent accounts

Which of the following accounts will usually appear in the
post-closing trial balance?
A. Accounts Payable B. Accumulate Depreciation
C. Cash D. Common Stock
E. Dividends F. Depreciation Expense
G. Fees Earned H. Office Equipment
I. Salaries Expense J. Salaries Payable
K. Supplies L. Supplies Expense

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Discussion question 3

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Discussion question 3

Lamp Light Company maintains and repairs warning lights,

such as those found on radio towers and lighthouses. Lamp
Light prepared the following end-of-period spreadsheet at
December 31, 2018, the end of the fiscal year:
Instructions
1. Prepare an income statement for the year ended
December 31.
2. Prepare a retained earnings statement for the year
ended December 31.
3. Prepare a balance sheet as of December 31.
4. Based upon the end-of-period spreadsheet, journalize
the closing entries.
5. Prepare a post-closing trial balance.

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Discussion question 4

Rearrange the following steps in the accounting cycle in

proper sequence:
A. A post-closing trial balance is prepared.
B. Adjustment data are asssembled and analyzed.
C. Adjusting entries are journalized and posted to the
ledger.
D. An adjusted trial balance is prepared.
E. An optional end-of-period spreadsheet is prepared.
F. An unadjusted trial balance is prepared.
G. Closing entries are journalized and posted to the ledger.
H. Financial statements are prepared.
I. Transactions are analyzed and recorded in the journal.
J. Transactions are posted to the ledger.

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.