Ch. 4 Eye Openers (23rd) - CHAPTER 4 COMPLETING THE...

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CHAPTER 4 COMPLETING THE ACCOUNTING CYCLE EYE OPENERS 1. The end-of-period spreadsheet (work sheet) illustrates flow of accounting information from the unad- justed trial balance into the adjusted trial balance and into the financial statements. In doing so, the spreadsheet (work sheet) illustrates the impact of the adjustments on the financial statements. 2. No. The end-of-period spreadsheet (work sheet) is a device used by the accountant to facilitate the preparation of statements. 3. A net income of $240,350 ($915,800 – $675,450) would be reported. When the Credit column exceeds the Debit column, net income is reported. If the Debit column of the Income Statement columns is more than the Credit column, a net loss is reported. 4. a. Current assets are composed of cash and other assets that may reasonably be expected to be realized in cash or sold or consumed in the near future through the normal operations of the busi- ness. b. Property, plant, and equipment is composed of assets used in the business that are of a perman- ent or relatively fixed nature.
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