Question

Which of the following is performed last at the end of the year?

1. Prepare adjusting entries.

2. Prepare closing journal entries.
3. Prepare a post-closing trial balance.

4.Prepare an adjusted trial balance.

One Company sold goods for $5,000 to Foster Company on March 12 on credit. Terms of the sale were 2/10, n/30. At the time of the sale, Tropical recorded the transaction by debiting accounts receivable for $5,000 and crediting sales revenue for $5,000. Foster paid the balance due, less the discount, on March 21. To record the March 21 transaction, One would debit:

At the end of the accounting period, which of the following accounts would not be closed?

1.Bad Debt Expense
2.Inventory

3.Sales Revenue
4.Cost of Goods Sold

Which of the following would decrease stockholders' equity?

1.Dividends paid to owners.
2.Repayment of notes payable.

3.Land purchased for cash.

4.Stock issued for cash.

Answer 1

1) At the end of accounting period, After financial statement all closing entries would be done and after closing entries we should prepare post closing trial balance

So answer is 3. Prepare a post-closing trial balance.

2) Journal entries

Date	General Journal	Debit	Credit
	Cash (5000*98)	4900
	Sales discount	100
	Account receivable		5000

3) At the end of accounting period, All revenue and expense account would be closed so in this question only inventory account is not revenue or expense account

So answer is b) Inventory

4) Repayment of notes payable, Land purchase for cash and stock issued would not decrease in Stockholder's equity

But Dividend paid to owner decrease retained earnings and stockholder's equity

So answer is a) Dividends paid to owners