ACC 1800-Accounting in-class activity 11 ingProcedures problem 1-Matching Match the following terms with the appropriate d B. Accounting cycle C. Tempor D. Working papers E. Income summary G. Closing entries Operating cycle of a business J. Pro forma statements 1. Various analyses and internal documents prepared by accountants when organiaing information for internal and external decision makers. from the sale of those goods and services all revenues and a debit for the sum of all expenses. 2. The time span from when cash is used to acquire goods and services until cash is received onlyu account only used for the closing process that contains a credit for the sum of 3. A temporary 4. A widely used working paper that is a useful tool for preparers in working with accounting 5. A list of permanent accounts and their balances from the ledger after all closing entries are 6. Recurring steps in preparing financial statement performed each accounting period, information, usually not available to external decision makers. journalized and posted. beginning with analyzing transactions and ending with a post-closing trial balance or reversing entries. 7. Entries used to transfer end-of-period balances in revenue, expense, and withdrawals accounts to the permanent owner's capital account. 8. Statements that show the effects of proposed transactions as if the transactions had already 9. Accounts that report on activities related to one or more future accounting periods; they 10. Accounts that accumulate data related to one accounting period only; they include income occurred carry their ending balances into the next period. statement accounts, withdrawals, and the Income Summary account. Problem 2-Closing Entries: The adjusted trial balance of Carson's Interset Services follows ARSON'S INTERNET Adjusted Trial Balance December 3 Cash Supplies S 1,170 5 3,400 13,925 Supplies expense Utilities expense Insurance expense $41,370 $41,370 Prepare the four closing entries necessary Pest. DateAccounts and EsplanationsRe What is the balance of Carson Gaines' capital account after the closing entries are posted? problem 3 - Matching: Match the following terms with the appropriate definition A Debit B. Credit period C. Credit terms E. Discount period Credit Gross profit Periodic inventory system F. G. H Perpetual inventory system I. Sales discount J. Purchase discount 1. An inventory accounting method that continually updates accounting records for inventory available 2. An inventory accounting method that updates the accounting records for merchandise transactions 3. The time period in which reduced payment can be made by the buyer because of a cash discount for sale and inventory sold only at the end of a period offered by a seller of goods on credit 4. A notification that informs the seller of a debit made to the seller's account payable in the buyers records 5. A cash discount granted, from the view of the purchaser intended to encourage buyers to pay 7. A cash discount granted from the view of the seller, indicated in the credit terms on the invoice. 9. The description of the amounts and timing of payments from a buyer to a seller for a purchase 6. A notification that informs a buyer of a seller's credit to a buyer's account. 8. The calculation of net sales less cost of goods sold. 10. The amount of time allowed before full payment is due
