ACC221 MIAMI UNIVERSITY FINAL PAPER 2026
COMPLETE QUESTIONS AND ANSWERS
◉ 1) General Ledger-Determine the ending CREDIT balance of the
sales revenue account 2) General Journal-Debit Sales Revenue with
the ending balance of the Sales Revenue account and Credit Retained
Earnings for the same amount 3) Post it to the General Ledger
accounts. Answer: 3 Steps for Closing Revenue Accounts
◉ Dr-Sales Revenue (w/ ending CREDIT balance of the Sales
Revenue Account in the GL), Cr-Retained Earnings (w/ same
amount). Answer: Close Revenue Account (Journal Entry)
◉ DR-Retained Earnings (w/ ending DEBIT balance of the Supplies
Expense Account in the GL) CR-Supplies Expense (w/ same amount).
Answer: Close Expense Account (Journal Entry) Ex-Supplies Expense
◉ Shows all of the General Ledger account balances after the closing
entries have been made. Used to determine that everything is in
balance and ready to start a new Accounting Cycle. Answer: Post-
Closing Trial Balance
◉ 1) Determine the effects of each business transaction on AC 2)
Make GJ entry and post to the GL 3) Enter any required adjusting
entries into the GJ and post to the GL 4) Prepare a Pre-Closing Trial
,Balance 5) Prepare an Income Statement 6) Calculate the ending
balance of the Retained Earnings Account 7) Prepare a Balance
Sheet 8) Enter revenue, expense, and dividend closing entries into
the GJ and post to GL 9) Prepare Post-Closing Trial Balance. Answer:
9 Steps in the Accounting Cycle
◉ Always the same as the ending balances of the previous period.
Answer: Permanent Account Beginning Balances
◉ Always 0 b/c they are closed at the end of each period. Answer:
Temporary Account Beginning Balances
◉ Receive two assets from the customer. Cash and a promise to pay
in the future (Accounts Receivable). Answer: Sale to a Customer
Both for Cash and on Account
◉ Dr-Cash (w/ cash amount), Dr-Accounts Receivable (w/ amount
promised to pay), Cr-Sales Revenue (w/ full amount of sale).
Answer: Sale to a Customer Both for Cash and on Account (Journal
Entry)
◉ Dr-Cash, Cr-Accounts Receivable. Answer: Collect an Account
Receivable (Journal Entry)
, ◉ Dr-Inventory, Cr-Accounts Payable. Answer: Make Payment on a
Vendor's Accounts Payable (Journal Entry)
◉ A Contra Asset Account that shows how much the cost of an asset
has been depreciated and how much has not yet been depreciated.
Answer: Accumulated Depreciation Account
◉ An asset account where the balance will be either a Credit balance
or a balance of 0. An asset account is supposed to have a Debit
balance. Answer: Contra Asset Account
◉ Equipment Cost/Months of Useful Life=Monthly reduction in the
equipment account. Answer: Straight-Line Depreciation Equation
◉ Dr-Depreciation Expense, Cr-Accumulated Depreciation. Answer:
Accumulated Depreciation (Adjustment Entry)
◉ Depreciation Expense understated, Total Expenses understated,
Net Income overstated, Accumulated Depreciation understated,
Total Assets overstated, Retained Earnings overstated, Total Equity
overstated, Total Liabilities and Equity overstated. Answer: Errors
Resulting From a Failure to Make Accumulated Depreciation
Adjustment Entry (8 Errors)
COMPLETE QUESTIONS AND ANSWERS
◉ 1) General Ledger-Determine the ending CREDIT balance of the
sales revenue account 2) General Journal-Debit Sales Revenue with
the ending balance of the Sales Revenue account and Credit Retained
Earnings for the same amount 3) Post it to the General Ledger
accounts. Answer: 3 Steps for Closing Revenue Accounts
◉ Dr-Sales Revenue (w/ ending CREDIT balance of the Sales
Revenue Account in the GL), Cr-Retained Earnings (w/ same
amount). Answer: Close Revenue Account (Journal Entry)
◉ DR-Retained Earnings (w/ ending DEBIT balance of the Supplies
Expense Account in the GL) CR-Supplies Expense (w/ same amount).
Answer: Close Expense Account (Journal Entry) Ex-Supplies Expense
◉ Shows all of the General Ledger account balances after the closing
entries have been made. Used to determine that everything is in
balance and ready to start a new Accounting Cycle. Answer: Post-
Closing Trial Balance
◉ 1) Determine the effects of each business transaction on AC 2)
Make GJ entry and post to the GL 3) Enter any required adjusting
entries into the GJ and post to the GL 4) Prepare a Pre-Closing Trial
,Balance 5) Prepare an Income Statement 6) Calculate the ending
balance of the Retained Earnings Account 7) Prepare a Balance
Sheet 8) Enter revenue, expense, and dividend closing entries into
the GJ and post to GL 9) Prepare Post-Closing Trial Balance. Answer:
9 Steps in the Accounting Cycle
◉ Always the same as the ending balances of the previous period.
Answer: Permanent Account Beginning Balances
◉ Always 0 b/c they are closed at the end of each period. Answer:
Temporary Account Beginning Balances
◉ Receive two assets from the customer. Cash and a promise to pay
in the future (Accounts Receivable). Answer: Sale to a Customer
Both for Cash and on Account
◉ Dr-Cash (w/ cash amount), Dr-Accounts Receivable (w/ amount
promised to pay), Cr-Sales Revenue (w/ full amount of sale).
Answer: Sale to a Customer Both for Cash and on Account (Journal
Entry)
◉ Dr-Cash, Cr-Accounts Receivable. Answer: Collect an Account
Receivable (Journal Entry)
, ◉ Dr-Inventory, Cr-Accounts Payable. Answer: Make Payment on a
Vendor's Accounts Payable (Journal Entry)
◉ A Contra Asset Account that shows how much the cost of an asset
has been depreciated and how much has not yet been depreciated.
Answer: Accumulated Depreciation Account
◉ An asset account where the balance will be either a Credit balance
or a balance of 0. An asset account is supposed to have a Debit
balance. Answer: Contra Asset Account
◉ Equipment Cost/Months of Useful Life=Monthly reduction in the
equipment account. Answer: Straight-Line Depreciation Equation
◉ Dr-Depreciation Expense, Cr-Accumulated Depreciation. Answer:
Accumulated Depreciation (Adjustment Entry)
◉ Depreciation Expense understated, Total Expenses understated,
Net Income overstated, Accumulated Depreciation understated,
Total Assets overstated, Retained Earnings overstated, Total Equity
overstated, Total Liabilities and Equity overstated. Answer: Errors
Resulting From a Failure to Make Accumulated Depreciation
Adjustment Entry (8 Errors)
