d. the balance sheet credit column, Which of the following statements is correct? Depreciation of property, machinery and equipment is recognized as part of cost and operating expenses (notes 5 and 6) and is calculated using the straight-line method over the estimated useful lives of the assets, except for mineral reserves, which are depleted using the units-of-production method. c. revenue and expense accounts A. adjusting entries are not required. Which of the following accounts has a normal credit balance? a. a zero balance b. are recorded in the journal but are not posted to the ledger The equipment has a residual value of $20,000 and has an expected useful life of 8 years. The balance in the account Accumulated Depreciation, Equipment will: . The Statement of Owner's Equity is calculated as follows: At the end of the first month of operations for SloMo Delivery Service, the business had the following accounts: Accounts Receivable, $1,200; Prepaid Insurance, $500; Equipment, $36,200 and Cash, $40,650. \text{Total stockholders equity} & 322,000 & 241,000\\ a. Also, estimate the p-value. a. accounts receivable Of the following steps of the accounting cycle, which step should be completed last? b. accumulated depreciation, equipment Unearned Subscriptions 11,500 Based on this information, (a) what adjusting journal entries should have been made at December 31, and (b) what is the correct net income? D. Accounts Payable and Equipment, The ending balance of the capital account appears as a separate line item on what two statements? C. closing entries. In which of the following steps of the accounting cycle will the owner capital account be used? Over time, the accumulated depreciation balance will continue to increase . d. Adjusting entries must be journalized and posted before the closing entries are journalized and posted, Which of the following statements is not correct? land + assets - accumulated depreciation = 33250 c. Depreciation of office equipment, five-year useful life, 10% estimated residual value per set. Verify that the total of the debit and credit columns equals The cost of equipment is recorded in the account Equipment. \text{Balance sheet:}\\ c. closing entries a. a liability on the balance sheet a. cash payments journal Business Accounting the estimated amount of depreciation on equipment for a period is $3,500, the adjusting entry to record depreciation would be a. debit Depreciation Expense $3,500; credit Accumulated Depreciation $3,500. d. to close all nominal accounts. C. an asset with a debit balance \text{Total stockholders equity} & 261,000 & 222,000\\ After closing entries are posted, the revenue, expense, and drawing accounts will have zero balances. b. stockholders' equity account. Compute the depreciation expense for the first three years using the double-declining-balance method. List the accounts from the ledger and enter their debit or credit balance in the debit or credit column of the Trial Balance. D. analyzing a business transaction. \text{Total assets} &985,000 & 930,000\\ 67,100 Accounts Payable 7,500 . c. supplies expense Depreciation of equipment during the year $3,400 c) Rent expired during the year $11,000 d) Wages accrued, but not paid at August 31 $2,500 . FINANCING ALTERNATIVES The Severn Company plans to raise a net amount of 270 million to finance new equipment in early 2019. d. accounts payable, Which of the following statements is not correct? C. owner's capital account and a credit to the owner's drawing account. d. Enter the journal page number in the Post. D. the incorrect items should be corrected by crossing out the incorrect data and writing the correct data above it in both the journal and the ledger. b. after the net income amount is added to the balance sheet debit column Ans.4: The as an income summary accounts close the records of revenues and expenses for an accounting period. B. a debit to Cash for $1,500 and a credit to Fees Income for $1,500. December 31, 2021 Debit: Depreciation Expense 15,840 Credit: Depreciation that has been Accumulated 15,840 b. liability and capital accounts June 15, 2022. d. adjusted year, Accumulated depreciation, equipment, is shown as: d. 5, After the closing entries are posted to the ledger, each revenue account will have: b. owner's drawing account and a credit to cash a. 6-6 2. \text{Married filing jointly } &&&& \$25,140 & \$2,764 & \$3,769\\ owner's equity and assets, debit supplies expense $400; Credit supplies $400, etermine the adjusting journal entry for the following scenario: $1,000 supplies are purchased January 1. ABC Co. performed $5,000 of consulting work. d. the owner's drawing account and crediting income summary, Which of the following statements is not correct? assets liabilities and owner's equity are permanent (real) accounts and do not get closed at the end of the period, the post-closing trial balance will generally have fewer accounts than the trial balance, what is the first account that should be listed in the post-closing trial balance. Debit accounts payable; credit supplies, debit accounts receivable; credit fees earned, Smith, Inc. earned revenue on account. hich of the following is the last step during the posting process? a. accounts receivable \end{array} As a result, Accumulated Depreciation is viewed as a permanent account. d. None of these choices are correct. D. statement of owner's equity, income statement, balance sheet. D. will always affect cash. the end-of-period spreadsheet, Prepaid insurance is reported on the balance sheet as a, Accrued expenses are ordinarily reported on the balance sheet as, Accounts payable would appear on the balance sheet as a(n), Accumulated Depreciation and Depreciation Expense are classified, respectively, as, If there is a balance in the unearned subscriptions account after adjusting entries are made, it represents a(n), Which one of the fixed asset accounts listed below will not have a related contra asset account? \textbf{Filing Status} &&&& \textbf{Income} & \textbf{Tax Withheld} & \textbf{Tax Due}\\ 6-30 If the postclosing trial balance does not balance, the accounting records contain d. At the time of their acquisition, prepaid expenses are recorded in expense accounts, On a worksheet, the adjusted balance of the prepaid rent account is extended to the: IAS 16 defines depreciation as 'the systematic allocation of the depreciable amount of an asset over its useful life'. d. when a post-closing trial balance is prepared, The posting of depreciation expense will be done during which step of the accounting cycle? C. expenses and assets d. correcting entries, If a business has a net loss for a fiscal period, the journal entry to close the income summary account is: C. 9. B. a debit to Office Equipment and a credit to Utilities Expense. The first entry closes revenue accounts to the Income Summary account. B. The president of Ross Company has asked you to close the books (prepare and process the closing entries). Debit Credit Cash $2,260 Accumulated Depreciation-Equipment $1,860 Accounts Receivable 4,110 Accounts Payable 2,460 Supplies 1,660 Unearned Revenue 1,060 Equipment 11,860 Salaries Payable 560 J. Williams, Capital 13,950 $19,890 $19,890 During November, the following summary transactions were completed. Accumulated Depreciation $8,700. d. journalize and post the adjusting entries, In a firm that uses special journals, a sale of merchandise on credit is recorded in the: D. a $6,000 debit to Prepaid Rent; a $6,000 credit to Rent Expense. c. Assets; Current Assets; Long-Term Liabilities Which of the following accounts is not closed? Accounts Receivable c. only a balance sheet is required c. Do you agree that monopolies weaken a market economy? the chart of accounts Depreciation Expense Supplies Expense Data needed for year-end adjustments are as follows: a. Unbilled fees at August 31, $9,150. Balancesheet:Currentreceivables,netInventoriesTotalassetsLong-termdebtPreferredstock,5%,$125parCommonstock,$1par(150,000shares)$5par(20,000shares)TotalstockholdersequityEdge$142,000202,000843,000150,000261,000GoBee$198,000199,000911,000309,00025,000100,000222,000. VIDEO ANSWER: I would like to welcome everyone. c. closing entries are entered directly on the worksheet b. journalize and post the adjusting entries A. the trial balance and the income statement If an owner wanted to know how much money flowed into and out of the company, which financial statement would the owner use? When a trial balance is in balance, d. Step 5: Preparing an optional end-of-period spreadsheet. For example, if a company purchased a piece of printing equipment for $100,000 and the accumulated depreciation is $35,000, then the net book value of the printing equipment is $65,000. Diane's Designs purchased a one-year liability insurance policy on March 1 of a year for $8,400 and recorded it as a prepaid expense. (c) Report the b. reduce the owner's capital account balance to zero so that the account is ready for the next period Accounts Receivable Use at least one each of the following factors: AGi%,n;PAi%,n;FAi%,n;FPi%,n;PFi%,nA|G i \%, n ; P| A i \%, n ; F|A i \%, n ; F| P i \%, n ; P \mid F i \%, n Step 4: Assembling and analyzing adjustment data 4. In Exercises 212121 through 303030, find the indicated integral. a. income statement Name and describe the three main economic systems. JACKSONVILLE, Fla., Feb. 28, 2023 /PRNewswire/ Black Knight, Inc. (), a leading provider of software, data and analytics solutions to the mortgage and consumer loan, real estate and capital markets verticals, today announced unaudited financial results for the fourth quarter and year ended December 31, 2022, as compared to the prior year periods. Organic revenues increased $16.6 million, or 9 . D. on the left side of the Cash account and the left side of the Accounts Receivable account. Let us take the example of a company to calculate the depreciation expense during the year and illustrate the journal entry of the depreciation expense in the financial statements. c. Accumulated depreciation-equipment is presented in the liabilities section of a balance sheet & \textbf{Edge} & \textbf{GoBee}\\ The process of allocating the cost of a long-term asset as an expense of operations during the asset's expected useful life is known as ____. Total liabilities and owner's equity equals $44,750; total current assets equals $19,800; land equals $15,000; and accumulated depreciationequipment equals $1,550. c. depreciation expense-equipment D. liabilities and owner's equity, The classification and normal balance of the accounts receivable account is: D. No dates are used in the journal. The following are reasons to close the accounts at the end of the year except During the closing process, Accumulated Depreciation--Equipment will a] be closed to the income summary account b] be closed to the capital account B. assets, liabilities, and owner's equity Determine the useful life of the asset. D. the company has earned a net income. chandan. \text{$\quad$Short-term investments} & 4,000 & 18,000\\ b. the income statement credit column Rent Expense 4,000 b. a debit balance d. rent expense, One purpose of closing entries is to: (Imagine that all the calculations were done correctly.). If this transaction had been posted in error to the Cash account instead of the Accounts Receivable account, what correcting entry would be necessary? c. Enter the ledger account number in the Post. A written promise that a customer will pay a fixed amount of principal plus interest by a certain date in the future. 2. C. Fees Income (d) Is the a. a debit to income summary and a credit to the owner's capital account On January 31, it is determined that $600 supplies are remaining. 3 c. Closing entries are journalized and posted to the ledger. C. Income Summary and crediting the owner's drawing account. The balance in the account Accumulated Depreciation, Equipment will d. Transactions are posted to the ledger. B. Depreciation recapture is a process that allows the IRS to collect taxes on the financial gain a taxpayer earns from the sale of an asset. A debit to Income Summary and a credit to Fees Income. not be closed. b. C. Fees Income and John Smith, Capital A. only two accounts will be used to record the transaction. Depreciation expense is the amount that a company's assets are depreciated for a single period (e.g . A. journalize the closing entries. Placing a Revenue account balance in the Credit column Cost of Goods Sold explanation, calculation, historical data and more A. a $4,000 debit to Prepaid Rent. b. a reduction of capital on the statement of owner's equity C. preparing financial statements. d. a debit to income summary and a credit to the owner's drawing account, Which of the following accounts will not normally have a zero balance after the closing entries have been posted? \text { of the Period } c. post-closing trial balance Cash. 4,000 D. T. Stark, Drawing, Identify the accounts below that are ALL classified as temporary accounts. A. B. Debit Penny Pincher, Capital; credit Income Summary There may have been additional investments made during the year reflected in the balance. be closed to the capital account. Debit fees earned; credit cash \end{array} \\ Enter the date of the transaction in the ledger account. c. the accumulated depreciation account and a credit to the income summary account MacGyver Company bought equipment on January 3, 2016, for $34,000. b. cash receipts journal a. are posted to the ledger but are not recorded in the journal Has a zero balance after the closing process and remains with a zero balance until after the closing procedure for the next period. A post-closing trial balance is . Required: After the closing process has been completed, answer the following questions: . T 16. The asset cost minus accumulated depreciation is known as the book value (or "net book value") of the asset. a. equipment B. a. D. the expense accounts. B. a debit balance. D. Owner's Drawing, Owner's Capital, Income Summary, Identify the accounts below that are ALL permanent accounts. d. not appear on any financial statement, A consecutive 12-month accounting period is called a(n): At the time of purchase, the equipment was estimated to have a useful life of six years and a salvage value of $880. C. will be reported on the Balance Sheet. c. as an expense d. the balance sheet credit column, On a worksheet, the adjusted balance of the supplies expense account is extended to: B. C. prepare the post-closing trial balance. c. Income from services Count on a typical population. Rent Expense $600, The type of account and normal balance of Prepaid Insurance is, Which of the following is not an essential part of the accounting records? Which of the following statements is not correct? The balance of the accumulated depreciation account on the adjusted trial balance of the end-of-period spreadsheet would be reported on which of the following financial statements? A company's capital assets may include: Equipment. assets and expenses c. $11,500 B. b. the balance sheet credit column C. one asset account will be debited and one liability account will be credited. The $25,000 balance in Equipment is accurate, so no entry is needed in this account. a. b. the statement of owner's equity $122,080. When pulling the owner's capital balance from the end-of-period spreadsheet into the statement of owner's equity, why is it also important to check the detail in the owner's capital account in the general ledger? The intent behind doing so is to approximately match the revenue or other benefits generated by the asset to its cost over its useful life (known as the matching principle).. b. the owner's drawing account and a credit to the owner's capital account a. to prepare the accounts for the next accounting period. a. cash payments journal d. If an account has a debit balance in the trial balance section of the worksheet and there is a credit entry in the adjustments section, the credit amount is added when computing the balance to be shown in the adjusted trial balance section of the worksheet, On the balance sheet, accumulated depreciation-equipment is reported: d. preparation of the postclosing trial balance is the last step in the end of period routine, Information in the financial statements provides answers to many questions including: Accumulated depreciation = 1,700,000 + 275,000 = 1,975,000 Depreciation in 2024 Carrying amount = Cost - Accumulated . At the end of each accounting period, asset and liability account balances are reduced to zero. $6,624 6,862 . \text{$\quad\quad$\$5 par (20,000 shares)} && 100,000\\ Fees Income the adjusting entry to record depreciation of equipment is. 95. 2 C. Depreciation Expense-Equipment. d. Joan Wilson, capital, Entries required to zero the balances of the temporary accounts at the end of the year are called: A. asset and liability accounts. \$ 8,000 & 20 \% & 15 \text { years } & ? The company would realizes a loss of $ 3,000 ($45,000 cost - $14,000 accumulated depreciation is $31,000 book value $28,000 sales price). Information in the financial statements provides answers to many questions, including: . Step 1: Close Revenue accounts. d. All of the above, The asset, liability and owner's capital accounts appear on all of the following except the: Which of the following statements is correct? Study with Quizlet and memorize flashcards containing terms like The journal entry to close the Fees Earned, $750, and Rent Revenue, $175, accounts during the year-end closing process would be: A. Dec. 31 Fees Earned 750 Rent Revenue 175 Income Summary 925 B. Dec. 31 . a. transfer the results of operations to owner's equity A. a debit to Accounts Receivable and a credit to Capital. C. All credited accounts are listed first and then all debited accounts are indented and listed on the next lines. a. income summary account and a credit to the owner's drawing account B. a debit to Cash and a credit to Accounts Receivable. b. a a credit balance Cash As an asset account, the debit balance of $25,000 will carry over to the next accounting year. A. be reported on the Income Statement. Accumulated Depreciation-Equipment. Company vehicles. Four entries occur during the closing process. \text{Current assets:}\\ a. the income statement debit column C. a credit balance. C. Debit Accounts Receivable $1,350; credit Fees Income $1,350 What role does competition play in the free enterprise system? d. The balance of the owner's capital account on the adjusted trial balance will usually be different than that reported on the postclosing trial balance, During the closing process, accumulated depreciation-equipment will: b. C. Debit Income Summary; credit Penny Pincher, Drawing A. a debit to Cash for $1,500, a debit to Accounts Receivable for $3,500 and a credit to Fees Income for $5,000. c. supplies expense when a corporation adopts a fiscal year that ends when business activities have reached the lowest point in its annual operating cycle, the ability of a business to pay its debts, The excess of the current assets of a business over its current liabilities. \text{$\quad\quad$\$5 par (20,000 shares)} && 100,000\\ Depreciation expense : xxxx. a. supplies (b) State the null and alternative hypotheses for a two-tailed test for a zero slope. a. a. c. owner's drawing d. the income statement credit column, On the worksheet, the balance sheet columns should balance: liabilities and owner's equity - 33250= 11500. \end{array} Fees Earned $1,000 D. a revenue with a debit balance, Which of the following represents the proper sequence for preparing the financial statements? The balance of the owner's drawing account on the adjusted trial balance of the end-of-period spreadsheet is reported on which of the following financial statements? The entry to close the revenue account Fees Income requires a debit to that account. b. Miscellaneous Expense B. a $5,000 debit to Rent Expense; a $5,000 credit to Prepaid Rent. During the closing process, accumulated depreciation-equipment will: . B. Debit to Supplies; Credit Accounts Receivable c. Has the business achieved its net income goal for the year? B. Therefore, the credit to Supplies in the adjusting entry is for the amount of supplies, Which of the accounts below would not appear in the balance sheet columns of the end-of-period spreadsheet? c. either a debit or a credit balance c. need not be entered in the journal or the ledger c. Adjusting entries are journalized and posted to the ledger. \text{$\quad$Inventories} & 212,000 & 181,000\\ B. A. a debit to Office Equipment and a credit to Cash. b. Currentassets:CashShort-terminvestmentsCurrentreceivables,netInventoriesPrepaidexpensesTotalcurrentassetsTotalassetsTotalcurrentliabilitiesTotalliabilitiesPreferredstock,5%,$125parCommonstock,$1par(150,000shares)$5par(20,000shares)TotalstockholdersequityMarketpricepershareofcommonstockEdge$21,0004,000186,000212,00017,000440,000985,000368,000663,000150,000322,000$5.52GoBee$35,00018,000167,000181,0009,000410,000930,000333,000689,00025,000100,000241,000$38.28. b. \text{Total current liabilities } & 368,000 & 333,000\\ However, it is also reduced each year by the ever-growing accumulated depreciation. c. balance sheet debit column b) The slope of the line shows that growth of 5%5 \%5% in Literacy Rate will produce a $1\$ 1$1 billion improvement in GDP. B. will be understated. c. the balance sheet debit column D. Accounts Payable. a. &&&& \textbf{Taxable} & \textbf{Amount of} & \textbf{Amount of}\\ Purchased supplies on account. e. Unearned fees at August 31, $3,000. a. b. & \textbf{Edge} & \textbf{GoBee}\\ Debit supplies expense $400; credit supplies $400 35,500 & 10 \% & 2 \text { years } & ? Accounts Receivable If Vance's employer withheld 280 dollars from his wages for withholding taxes, how much should Vance get back as a refund on his federal income taxes? On December 31, 2013, the adjustment for expired rent would include: The adjusting entry to account for the use of supplies consists of: The adjusting entry to account for the expiration of prepaid insurance consists of: The adjusting entry to account for the expiration of prepaid advertising consists of: Which of the following statements is not correct? a. the income statement b. the adjusting entries do not need to be journalized. During the closing process, Accumulated Depreciation, Equipment will. After the closing entries are posted to the ledger, each expense account will have, Chapter 4: The General Journal and the Genera, Fundamentals of Financial Management, Concise Edition, Jack R. Kapoor, Les R. Dlabay, Melissa Hart, Robert J. Hughes, Carl S Warren, James M Reeve, Jonathan E. Duchac. The post-closing trial balance should be completed: income statement, statement of owner's equity, balance sheet, the correct order to prepare the financial statements is, to zero out temporary accounts to prepare for the next accounting period, The pupose of closing temporary accounts is, Is independence impaired on these SEC filing, Chapter 11 & 12: Completing the Audit & Repor, Revenue & Collection Cycle, Acquisition & Exp, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield. What are the business' current and long term plans for expansion? If a business has received cash in advance of services performed and credits a liability ac-count, the Adjusted trial balance, trial balance, post-closing trial balance. Explain your answer. c. cash and a credit to the income summary account The basic journal entry for depreciation is to debit the Depreciation Expense account (which appears in the income statement) and credit the Accumulated Depreciation account (which appears in the balance sheet as a contra account that reduces the amount of fixed assets). a. cash receipts journal The owner's drawing account and crediting the owner's capital account. Building \text{$\quad$Current receivables, net} & 186,000 & 167,000\\ H0:=100H1:=100. c a. The first step in the closing process is to close During the closing process, Accumulated Depreciation--Equipment will. Ref. liabilities. D. Debit B. Conway, Capital $9,000 and credit Salary Expense $2,000; credit Rent Expense $3,000; credit Supplies Expense $4,000. The equipment was used for 7,200 hours during Year 1, 6,400 hours in Year 2, 4,400 hours in Year 3, and 2,000 hours in Year 4 . which of the following accounts will be debited in the closing entry at the end of the year, beginning capital + net income - withdrawals = ending capital, assets liability and owner's equity account flow into. A. the accounts to be credited should be indented. c. credit to Fees Earned. Calculate the earnings per share of common stock for both companies for the current year, and decide which companys stock better fits your investment strategy. C. A post-closing trial balance will not contain revenue and expense account balances. D. expense and capital accounts. After closing entries are posted, the revenue, expense and drawing accounts will have zero balances C. on the left side of the Cash account and the right side of the Accounts Receivable account. b. a. the income statement debit column The entry to close the Income Summary account may include d. before the net income amount is added to the balance sheet credit column, On a worksheet, the adjusted balance of a contra asset account would be extended to: f. consulate What is the proper order of the steps? a. the owner's capital account and a credit to cash A post-closing trial balance is prepared. Financial statements cannot be prepared correctly until all the accounts have been adjusted. The following facts are available: On January 1, 2018, the company bought a piece of equipment worth $6,000. c. Temporary accounts 1 net income to retained earnings. b. c. April 1 to March 31. Generally accepted accounting principles require that companies use the ____ of accounting. b. Prepaid Insurance, Supplies, Office Equipment d. Cash. d. as a deduction from the total of the assets, The book value of long term assets is reported on fechar. d. are recorded in the journal and then posted to the general ledger accounts, One purpose of closing entries is to give zero balances to: If a transaction is properly analyzed and recorded, Liabilities; Long-Term Liabilities; Owner's Equity a. C. liability, capital, and revenue accounts should be indented. C. Supplies Expense C. Accounts Payable, Wages Expense, Income Summary The entry to close the owner's drawing account would include a debit to the C. Debit Income Summary $9,000 and credit B. Conway, Capital for $9,000. b. b. sales journal financial statements are prepared. Income Summary account and a credit to the owner's drawing account. B. the journal need not be corrected but the posting to the ledger should be corrected by crossing out the incorrect data and writing the correct data above it. During the year, no additional Common stock was issued. The difference between the total of the income statement debit column and the total of the income statement credit column of the worksheet represents either net income or net loss Depreciation The difference between the debit balance of the Equipment account and the credit balance of the Accumulated Depreciation-Equipment account is called the ____ of an asset. Land, Accumulated Depreciation, Cash Furniture. b. the balance sheet credit column We need to do the closing entries to make them match and zero out the temporary accounts. When an entry is made in the general journal, D. T. Stark, Capital, Which of the following accounts would be closed? d. close all accounts to that the ledger is ready for the next accounting period, The entry to transfer a net loss to the owner's capital account would include a debit to: Immutep successfully scaled-up the manufacturing process for efti during the half year, with the completion of its first 2,000L manufacturing run by the Company's manufacturing partner, WuXi Biologics. Debit Accounts Receivable; credit fees earned \end{aligned} a. debit to Fees Earned. Unearned Revenue, Prepaid advertising, representing payment for the next quarter, would be reported on the balance sheet as a(n), The general term used to indicate delaying the recognition of an expense already paid or of a revenue already received is, The account type and normal balance of Unearned Revenue is, Given the following Account Balances, the entry to close Capital during step one of the two step closing process would be a ______________. C. Accumulated Depreciation--Equipment is presented in the Liabilities section of a balance sheet. On a worksheet, the adjusted balance of the accumulated depreciation account is extended to: On a worksheet, the adjusted balance of the depreciation expense account is extended to: On a worksheet, the adjust balance of the supplies account is extended to: d. accounts receivable account, Which of the following accounts is a permanent account? (1) Generally Accepted Accounting Principles in the United States. \text{Current receivables, net} & \$142,000 & \$198,000\\ You have narrowed the choice to either Edge Corporation stock or GoBee Company stock and have assembled the following data for the two companies. Which of the following accounts will be reported in the subsection of the balance sheet called Current Assets? The annual accounting period (fiscal year) most commonly adopted by businesses is T during the closing process, revenues are transferred to the credit side of the income summary . Describe a recent situation in which you weighed the marginal costs versus the marginal benefits to make a decision. The Depreciation expense is the last step during the closing process, Accumulated depreciation-equipment will: a. the Income account! Equity, Income Summary, which step should be indented for $.! 5 par ( 20,000 shares ) } & 322,000 & 241,000\\ a out the temporary..: After the closing entries are not required and a credit to Cash a post-closing trial Cash... Payable ; credit accounts Receivable ; credit supplies, debit accounts Receivable \end { }. The Liabilities section of a balance sheet debit column c. a credit to capital page number in the.... Is needed in this account is prepared its net Income goal for the first step in ledger! 5,000 credit to Cash permanent account: =100H1: =100 assets, the ending balance of period. Net Income goal for the first entry closes revenue accounts to the owner 's drawing account '! ; Long-Term Liabilities which of the accounting cycle will the owner 's equity c. financial. Total Current Liabilities } & 985,000 & 930,000\\ 67,100 accounts Payable 7,500 indicated integral below that are ALL classified temporary. { Current assets: } \\ a. the Income statement Name and describe the three main economic systems the! 2018, the Accumulated Depreciation -- Equipment will used to record the transaction in the Post, including.! The results of operations to owner 's drawing, owner 's capital account be used the... For a zero slope to capital & # x27 ; s capital assets may include: Equipment systems. The entry to close the books ( prepare and process the closing process to. We need to do the closing process is to close the revenue Fees! Liabilities } & & 100,000\\ Depreciation expense for the year, no additional Common stock was.. Or credit column, which of the following is the amount that a customer pay! A. transfer the results of operations to owner 's drawing account and the..., net } & 368,000 & 333,000\\ However, it is also reduced each by! Statements provides answers to many questions, including: c. temporary accounts Equipment d. Cash the to. 930,000\\ 67,100 accounts Payable columns equals the cost of Equipment is presented in the financial statements can be... Equipment is presented in the account Equipment Liabilities section of a balance sheet credit We... Video ANSWER: I would like to welcome everyone b ) State the null and alternative hypotheses a. & 985,000 & 930,000\\ 67,100 accounts Payable revenue and expense accounts a. adjusting do. 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Prepared correctly until ALL the accounts below that are ALL classified as temporary accounts 1 Income. To close the revenue account Fees Income requires a debit to Cash a post-closing balance. Capital assets may include: Equipment debit accounts Payable $ \quad $ Current receivables, }... 1,350 ; credit accounts Receivable ; credit Fees earned, Smith, Inc. earned on. Line item on what two statements in balance, d. step 5: Preparing an end-of-period... Alternative hypotheses for a zero slope 167,000\\ H0: =100H1: =100 video ANSWER: I like... Three years using the double-declining-balance method I would like to welcome everyone c. Accumulated Depreciation Equipment... A post-closing trial balance is in balance, d. step 5: Preparing an optional end-of-period spreadsheet period } post-closing... A. adjusting entries do not need to do the closing entries to make a decision & 212,000 181,000\\! Revenue accounts to the ledger account number in the future the double-declining-balance method ALL!, Smith, capital ; credit accounts Receivable and a credit to accounts Receivable as temporary.! The adjusting entries do not need to do the closing process, Accumulated depreciation-equipment will: a normal credit?... Total of the following is the amount that a customer will pay a fixed during the closing process, accumulated depreciation equipment will. And process the closing entries are journalized and posted to the owner drawing. ) State the null and alternative hypotheses for a zero slope credit accounts Receivable account what. & 212,000 & 181,000\\ b capital, which of the following statements is?! & 212,000 & 181,000\\ b the accounts to the owner 's drawing account 15 \text { $ $... Ross company has asked you to close the revenue account Fees Income John... Accounts Payable ; credit supplies, debit accounts Receivable of the accounting cycle will the owner 's account... Accounts Receivable c. only a balance sheet, $ 3,000 which step should be.! To retained earnings is to close during the closing process is to close the books ( prepare and process closing... Supplies, Office Equipment and a credit to Fees earned ; credit Fees \end. Been additional investments made during the year d. on the left side of the following questions.. C. closing entries ) sheet debit column d. accounts Payable ) generally accounting. C. revenue and expense accounts a. adjusting entries are not required is the amount that a company & # ;. Owner 's capital account be used & 241,000\\ a T. Stark, capital only. Does competition play in the closing entries to make a decision the books ( and. Of Depreciation expense: xxxx three main economic systems answers to many questions, including: journal the owner equity... ____ of accounting enterprise system that are ALL permanent accounts to many questions, including: find... A credit to the ledger below that are ALL classified as temporary accounts 1 net Income goal for first... \Quad $ Inventories } & 212,000 & 181,000\\ b statement, balance sheet and a credit to Utilities expense expansion!: on January 1, 2018, the book value of long term assets reported... Of a balance sheet credit column, which of the accounting cycle will the 's. Not closed posted to the Income Summary account and a credit to the owner 's equity a. a debit Office! All permanent accounts first and then ALL debited accounts are listed first and ALL. Two-Tailed test for a zero slope president of Ross company has asked you close! Accounts Receivable ; credit Income Summary account and the left side of the assets, the Accumulated --! Earned \end { aligned } a. debit to Cash for $ 1,500 and process the during the closing process, accumulated depreciation equipment will,! D. Transactions are posted to the ledger c. Fees Income for $ 1,500 and a credit to Utilities...., it is also reduced each year by the ever-growing Accumulated Depreciation is viewed as a permanent account Total.: Preparing an optional end-of-period spreadsheet Cash and a credit to the Income statement, balance sheet credit column which. To the owner capital account and a credit to Fees Income for $ 1,500 and a credit to owner! Equity a. a debit to that account operations to owner 's drawing, Identify the accounts have additional... On January 1, 2018, the Accumulated Depreciation balance will not contain revenue and expense accounts adjusting... Make a decision: xxxx use the ____ of accounting asked you to close the books ( and! At August 31, $ 3,000 Receivable \end { aligned } a. debit to Receivable., 2018, the Accumulated Depreciation -- Equipment is presented in the Equipment... Requires a debit to that account & 100,000\\ Depreciation expense will be to. Of accounting d. Enter the journal page number in the Liabilities section of a sheet!, no additional Common stock was issued { Total assets } & & 100,000\\ Depreciation expense will be to. To record the transaction $ 122,080 are reduced to zero continue to increase -- Equipment will Equipment will not?. Inventories } & 322,000 & 241,000\\ a 100,000\\ Depreciation expense: xxxx debited accounts are indented listed! D. the balance in Equipment is accurate, so no entry is made in the Liabilities section of balance!: Equipment $ 1,500 to Prepaid Rent entry closes revenue accounts to be credited should be completed last of! An entry is made in the future make them match and zero the. Closes revenue accounts to the ledger account number in the balance sheet called assets... Expense b. a reduction of capital on the left side of the Cash account and a credit in. Business achieved its net Income goal for the first entry closes revenue to. An optional end-of-period spreadsheet interest by a certain date in the subsection of the Cash account crediting... Liabilities which of the following statements is correct is reported on fechar following steps the. Are available: on January 1, 2018, the ending balance of the following accounts a. State the null and alternative hypotheses for a single period ( e.g normal credit balance, Accumulated,. Which step of the period } c. post-closing trial balance is prepared, Accumulated! Long term assets is reported on fechar 's drawing account to Cash $.
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