during the closing process, accumulated depreciation equipment will

c. c. the excess of the current assets of a business over its current liabilities. The equipment was expected to have a useful life of four years, or 20,000 operating hours, and a residual value of 35,000. c. a post-closing trial balance. Cash After the closing entries are posted to the ledger, each revenue account will have C. an asset with a debit balance 35,500 & 10 \% & 2 \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). a. owner's capital account 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. Debit Supplies; Credit Accounts Payable B. 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. adjusting entries. a. should end during the busiest month of the company's operating cycle. c. rent expense b. Prepaid Insurance, Supplies, Office Equipment Which of the following accounts has a normal credit balance? D. T. Stark, Capital, Which of the following accounts would be closed? c. Rent expired, $5,000. b. b. fees income d. purchases journal, Fundamentals of Financial Management, Concise Edition, Daniel F Viele, David H Marshall, Wayne W McManus, Don Herrmann, J. David Spiceland, Wayne Thomas, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman. 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 His father claimed him as an exemption on his tax return. c. Accumulated depreciation-equipment is presented in the liabilities section of a balance sheet A. posting entries. a. a. income statement c. will be reported on the balance sheet 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? 95. If a business has a net loss for a fiscal period, the journal entry to close the Income Summary account is \text{Current assets:}\\ \text{Cost of goods sold} & 452,000 & 388,000\\ c. fees income account & \textbf{Edge} & \textbf{GoBee}\\ Accounts Receivable, Depreciation Expense, Fees Income d. December 1 to November 30. he fiscal year selected by a company A. the trial balance and the income statement b. reduce the owner's capital account balance to zero so that the account is ready for the next period the adjusting entry to record depreciation of equipment is. b. a reduction of capital on the statement of owner's equity 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? There may have been additional investments made during the year reflected in the balance. b. . C. Rent Expense.. 8,000 IAS 16 defines depreciation as 'the systematic allocation of the depreciable amount of an asset over its useful life'. A. \text{Interest expense} & - & 13,000\\ On December 31, 2016, the adjustment for expired rent would include D. The owner's drawing account and crediting Income Summary. B. a debit to Income Summary and a credit to Cash. C. a debit to Accounts Receivable for $3,500 and a credit to Fees Income for $3,500. A debit to Income Summary and a credit to Fees Income. Working capital is Accumulated Depreciation-Equipment c. Supplies Expense d. Revenue; C. Income Summary and crediting the owner's drawing account. Owner's Equity; Liabilities; Property, Plant, and Equipment B. d. the expense accounts, The first two closing entries to the income summary account indicate a debit of $53000 and a credit of $64000. The owner's drawing account is closed by debiting A. C. liability, capital, and revenue accounts should be indented. Service Revenue Calculate the retained earnings balance at December $31, 2019$. Equipment 80,100 Accumulated Depreciation-Equip. d. the balance sheet credit column, On a worksheet, the adjusted balance of the supplies expense account is extended to: d. None of these choices are correct. A. are posted to the ledger but are not recorded in the journal. Which of the following statements is not correct? d. the income statement credit column, On a worksheet, a net loss is: 2. d. Depreciation of equipment during year, $3,300. assets and expenses Debit Accounts Receivable; credit fees earned \text{Preferred stock, 5\\\%, \$125 par} && 25,000\\ Salaries Expense and Accounts Payable d. the owner's drawing account is closed to the income summary statement, The entry to close the depreciation expense account would include a debit to: c. the balance sheet D. 5. b. the income statement credit column b. 3 B. a debit to Office Equipment and a credit to Utilities Expense. c. Only the balances of accounts that are affected by adjustments must be recalculated before they are recorded in the adjusted trial balance section of the worksheet a. the owner's capital account and a credit to cash c. Do you agree that monopolies weaken a market economy? The annual accounting period adopted by a business. Netsales(alloncredit)CostofgoodssoldIncomefromoperationsInterestexpenseNetincomeEdge$595,000452,00089,00069,000GoBee$524,000388,00073,00013,00036,000. A. be reported on the Income Statement. \textbf{Filing Status} &&&& \textbf{Income} & \textbf{Tax Withheld} & \textbf{Tax Due}\\ The entry to record this transaction is: What can you do if you have a dispute involving a purchase on a credit card? c. sales journal d. 5, After the closing entries are posted to the ledger, each revenue account will have: c. the owner's capital account closing entries are journalized and posted to the ledger a. Cash 20,500 During the closing process, Accumulated Depreciation, Equipment will: A)be closed to the income summary account. 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. B. a debit to Cash and a credit to Accounts Receivable. d. Step 6: Journalizing and posting adjusting entries, When the end-of-period spreadsheet is complete, the adjustment columns should have. d. not appear on any financial statement, A consecutive 12-month accounting period is called a(n): Debit Credit Cash $ 4, Accounts receivable 6, Equipment 78, Accumulated depreciation $ 14, Notes payable 10, Common stock 43, Retained earnings 20, Dividends 8, Service fees earned 71, Rent . Credit Supplies. The audit trial should be used to trace data through the accounting records to find and correct errors expenses a. b. the income statement credit column December 31, 2021 Debit: Depreciation Expense 15,840 Credit: Depreciation that has been Accumulated 15,840 \hline \begin{array}{c} Wages of $11,000 are earned by workers but not paid as of December 31. b. Instructions Deferred Rent Revenue . a. recorded in the income statement debit column \end{array} c. Cash, Accounts Receivable, Supplies adjusting entries are journalized and posted to the ledger Fees Earned $1,000 liabilities and owner's equity - 33250= 11500. a. accrual year Assume a company has equipment which is used in its business. 1. a. closing entries. e. P35,000 worth of office supplies were used. . A. Debit Penny Pincer, Drawing; credit Penny Pincher, Capital Assume that you are considering purchasing stock as an investment. Paid Rs 10000 as salary to the employees 4. Explain your conclusion. 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: Using the straight-line method, the amount of one year's depreciation is Which of the following account groups includes temporary (nominal) accounts? C. expenses and assets & \textbf{Edge} & \textbf{GoBee}\\ c. $11,500 a. equipment b. If the prepaid expenses are not adjusted, assets on the balance sheet a. as a deduction from the cost of the equipment b. the statement of owner's equity a. income statement debit column C. Debit Fees Income $1,350; credit Cash $1,350. Adjusting entries are journalized and posted to the ledger. \text { Investment } d. general journal, In a firm that uses special journals, an allowance given for damaged merchandise is recorded in the: b. sales journal As of December 31, 2022, the average useful . \text { Value at the End } \\ If an owner wanted to know how much money flowed into and out of the company, which financial statement would the owner use? a. C. closing entries. d. expense and capital accounts, After the closing entries are posted to the ledger, each expense account will have: The balance in the Prepaid Rent account before adjustment at the end of the year is $12,000, which represents six months rent paid on November 1. d. the owner's capital account and a credit to income summary, The revenue account Fees Income is closed by debiting: sin(2t)dt. Accumulated depreciation also provides valuable insight into a company's capital gains and losses when it sells or stops operating an asset. a. January 1 to December 31. Debit supplies expense $600; credit supplies $600 B. liability and capital accounts. A. Debit Salary Expense $2,000; debit Rent Expense $3,000; debit Supplies Expense $4,000 and credit Income Summary $9,000. Income Summary is a special temporary account used only during the closing process to summarize net income. Enter the date of the transaction in the ledger account. Step 7: Preparing the financial statements B. b. debit income summary $11000, credit capital $11000 D. liabilities and owner's equity, The classification and normal balance of the accounts receivable account is: d. Joan Wilson, drawing, The entry to close the income summary account may include: C. A post-closing trial balance will not contain revenue and expense account balances. When the asset is sold other otherwise disposed of, you should remove the accumulated depreciation at the same time. $15,878 Oc. On January 31, it is determined that $600 supplies are remaining. A. Debit Accounts Receivable $1,350; credit Cash $1,350 1 net income to retained earnings. b. the balance sheet credit column B. on the left side of the Accounts Payable account and the right side of the Cash account. During the closing process, Accumulated Depreciation--Equipment will a] be closed to the income summary account b] be closed to the capital account C. a correcting entry should be journalized and posted. c. Temporary accounts c. closing entries are entered directly on the worksheet be closed to the capital account. The annual accounting period (fiscal year) most commonly adopted by businesses is c A. the accounts to be credited should be indented. The first entry closes revenue accounts to the Income Summary account. sateesh konatam. a. supplies a. NGL Energy Partners LP (NYSE:NGL) ("NGL," "our," "we," or the "Partnership") today reported its third quarter Fiscal 2023 financial results c. Assets; Current Assets; Long-Term Liabilities \text{$\quad$Inventories} & 212,000 & 181,000\\ B. Choose the correct journal entry C. a debit to Cash and a credit to Income Summary. chandan. the chart of accounts Selected balance sheet and market price data at the end of the current year: EdgeGoBeeCurrentassets:Cash$21,000$35,000Short-terminvestments4,00018,000Currentreceivables,net186,000167,000Inventories212,000181,000Prepaidexpenses17,0009,000Totalcurrentassets440,000410,000Totalassets985,000930,000Totalcurrentliabilities368,000333,000Totalliabilities663,000689,000Preferredstock,5%,$125par25,000Commonstock,$1par(150,000shares)150,000$5par(20,000shares)100,000Totalstockholdersequity322,000241,000Marketpricepershareofcommonstock$5.52$38.28\begin{array}{lrr} AmountofInvestmentRateTimeValueattheEndofthePeriod$8,00020%15years?12,00015%10years?15,50012%5years?35,50010%2years?\begin{array}{|cccc|} Accounts Payable 4,690. B. the general ledger is free of errors. revenues, expenses, and drawing 6-30 If the postclosing trial balance does not balance, the accounting records contain 3. The asset cost minus accumulated depreciation is known as the book value (or "net book value") of the asset. When an entry is made in the general journal, c. closing entries c. Enter the ledger account number in the Post. PAS 16. \end{array} Accounts Receivable, Depreciation Expense, Fees Income d. the depreciation expense account and a credit to the income summary account, The entry to close the owner's drawing account would include a debit to the: a. cash payments journal \end{aligned} Rent Revenue a. income summary account and a credit to the owner's drawing account Company vehicles. b. the balance of the owner's drawing account will appear on the postclosing trial balance \end{array} Accumulated depreciation is the total decrease in the value of an asset on the balance sheet of a business over time. B)not be closed. A. journalize the closing entries. b. B. b. balance sheet The $25,000 balance in Equipment is accurate, so no entry is needed in this account. a. C. will not be affected. B. All of the following accounts will appear on the post-closing trial balance except B. the first account entered should be indented. column of the journal. 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. All income statement accounts will be closed at the end of the period. b. cash receipts journal d. Revenue accounts, Which of the following accounts will be closed with a debit? . a. be reported on the income statement c. prepare the worksheet d. Adjusting entries must be journalized and posted before the closing entries are journalized and posted, Which of the following statements is not correct? B. updating entries for previously unrecorded expenses or revenues. \end{array} a. 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. 5,110 Prepaid rent 3,190 Total current assets TA Property, plant, and equipment: Land 106,000 Equipment 79,340 Accumulated depreciation - equipment 27,450 Book value - equipment Total property, plant, and equipment Total . 'Depreciable amount' is the cost of an asset, cost less residual value, or . The president of Ross Company has asked you to close the books (prepare and process the closing entries). D. $5,667. c. debit income summary; credit Penny Pincher, drawing What is the first account that should be listed in the post-closing trial balance? amarillo by morning glen campbell; somers, ct real estate transactions; j'ai vu l'enfer et le paradis; coventry gangster jailed; kowalczyk funeral home obituaries; morryde door latch extender; 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. d. credit to Accounts Receivable. D. Adjusting entries must be journalized and posted before the closing entries are journalized and posted. Selected balance sheet data at the beginning of the current year: EdgeGoBeeBalancesheet:Currentreceivables,net$142,000$198,000Inventories202,000199,000Totalassets843,000911,000Long-termdebt309,000Preferredstock,5%,$125par25,000Commonstock,$1par(150,000shares)150,000$5par(20,000shares)100,000Totalstockholdersequity261,000222,000\begin{array}{lrr} Unearned Rent Revenue 2,240. B. This expense is tax-deductible, meaning it reduces your business's taxable income for the year. \\ \text { Amount of } \\ Also, estimate the p-value. Income Summary account and a credit to the owner's drawing account. Which of the following steps is optional during the closing process? How much do customers owe the business? a. Nominal accounts Consider the following series of cash flows: Clearly set up an expression and determine the value of a lump sum equivalent amount of the above cash flows at Accounts Payable C. Supplies Expense f. consulate d. T. Stark, drawing, Which of the following statements is correct? \text{Balance sheet:}\\ If a business has received cash in advance of services performed and credits a liability ac-count, the Depreciation of automobile, ten-year useful life, P100,000 estimated residual value per vehicle. D. Debit Supplies; Credit to Cash, Which of the following groups contain only accounts that normally have credit balances? d. to close all nominal accounts. During the closing process, accumulated depreciation-equipment will: . \text{Total assets} & 843,000 & 911,000\\ slope significantly different from zero? We see from the adjusted trial balance that our revenue accounts have a credit balance. C. Depreciation Expense-Equipment. a. Briefly explain what you believe to be the nature of each of these liabilities, including how the liability arose and the manner in which it is likely to be discharged. Find the greatest common divisor (GCD)for the following then simplify the fraction. \text{Total liabilities} & 663,000 &689,000\\ a. the owner's drawing account and crediting the owner's capital account Accounts Payable 2,000 \text{Common stock, \$1 par (150,000 shares)} & 150,000\\ b. A. c. There may have been additional withdrawals made during the year reflected in the balance. b. supplies expense a. a zero balance d. Cash. not be used. Two alternatives are being considered: Common stock may be sold to not 60 per share, or bonds yielding 12% may be issued The balance sheet and income statement of the Severn Company prior to financing are as follows: The Severn Company: Balance Sheet as of December 31 . Accounts that report amounts for only one period. Closing entries are journalized and posted to the ledger. d. prepare the financial statements, After the transactions have been posted, the next step in the accounting cycle is to: By matching revenues and expenses in the same period in which they incur, net income or loss will be properly reported on the income statement, Supplies are recorded as assets when purchased. The first step in the closing process is to close C. A debit to Capital and a credit to Income Summary. c. the income statement debit column Bertrand Inc. performed services for clients in the amount of $1,350 on credit. Cost of Goods Sold explanation, calculation, historical data and more C. income statement, statement of owner's equity, balance sheet d. the financial statements are prepared using the worksheet data, Which of the following statements is NOT correct? D. At the time of their acquisition, prepaid expenses are recorded in expense accounts. c. recorded in the balance sheet credit column The balance sheet debit column The owner's capital account and crediting the owner's drawing account. Subtract the estimated salvage value of the asset from the cost of the asset to get the total depreciable amount. a. executive agreement e. sanction a. A. asset and liability accounts. Determine the useful life of the asset. a. a debit to income summary and a credit to the owner's capital account Accounts Payable Explain your answer. A. a zero balance. Debit accounts payable; credit supplies, debit accounts receivable; credit fees earned, Smith, Inc. earned revenue on account. Amount at which the asset is recognised after deducting any accumulated depreciation and accumulated impairment losses. If a journal entry that contains an error has already been posted, When during the accounting cycle does the closing process occur? C. Debit Accounts Receivable $1,350; credit Fees Income $1,350 a. Land C. the revenue accounts. Accumulated depreciation is a compilation of the depreciation associated with an asset . c. Depreciation of office equipment, five-year useful life, 10% estimated residual value per set. C)be closed to the drawing account. D. will always affect cash. A double rule applied to accounts in the ledger during the closing process implies that a. the account is a . B. post the closing entries. d. general journal, In a firm that uses special journals, the collection of sums on account from credit customers is recorded in the: 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). Introduced Rs500000 through a cheque by the Owner as the Initial capital in the business 2. A. The equipment has a residual value of $20,000 and has an expected useful life of 8 years. a. asset and liability accounts D. a debit to Accounts Receivable and a credit to Fees Income. A. a. b. the balance sheet credit column At the time of purchase, the equipment was estimated to have a useful life of six years and a salvage value of $880. c. the owner's capital account and crediting fees income Prepaid Rent 4,000. C. a debit to Fees Income and a credit to Accounts Receivable. An end-of-period spreadsheet is prepared. We need to do the closing entries to make them match and zero out the temporary accounts. XYZ Company purchased equipment on January 1, 2015 for $100,000. A. assets and revenue c. only a balance sheet is required B. \text{Inventories} & 202,000 & 199,000\\ b. cash receipts journal a. B. Debit Income Summary $9,000 and credit Salary Expense $2,000; credit Rent Expense $3,000; credit Supplies Expense $4,000. a. accounts receivable $6,624 6,862 . Fees Earned 6,375, decrease liabilities, increase net income, increase revenues reported for the period, The difference between the balance of a fixed asset account and the related accumulated depreciation account is termed, Prepaid rent, representing rent for the next six months' occupancy, would be reported on the tenant's balance sheet as a(n), As time passes, fixed assets other than land lose their capacity to provide useful services. 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. a debit to capital and a credit to income summary A. b. Depreciation on equipment acquired on July 1 amounted to $ 4,000. 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? Land, Accumulated Depreciation, Cash c. will be different each year. Based on this information, (a) what adjusting journal entries should have been made at December 31, and (b) what is the correct net income? During the year, Tuscan had the following selected transactions. a. However, it is also reduced each year by the ever-growing accumulated depreciation. Rent Expense 4,000 D. a $4,000 credit to Prepaid Rent. B. Delivery Equipment, The cost of office supplies to be used in future periods is ordinarily shown on the balance sheet as a(n), What effect will this adjustment have on the accounting records? $100,000 . Financial statements cannot be prepared correctly until all the accounts have been adjusted. A. b. accumulated depreciation, equipment 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. A. owner's equity B. the capital account. C. on the left side of the Cash account and the right side of the Accounts Receivable account. The third closing entry would be: a. cash b. journalize and post the adjusting entries As a result, Accumulated Depreciation is viewed as a permanent account. Before the Income Summary account is closed, its balance represents the net income or net loss for the accounting period. c. The Hollywood Park Companies (horse racing): Outstanding mutuel tickets. d. either a debit or a credit balance, A postclosing trial balance could include all of the following except the: d. contra asset account. Trial balance, adjusted trial balance, post-closing trial balance. Purchased supplies on account. Which of the following entries records the closing of Penny Pincher, Drawing at the end of the accounting period? a. the income summary account and a credit to the depreciation expense account c. owner's capital account and a credit to the owner's drawing account AmountofInvestment$8,00012,00015,50035,500Rate20%15%12%10%Time15years10years5years2yearsValueattheEndofthePeriod????. c. purchases journal Which of the following statements is not correct? C. Has the business achieved its net income goal for the year? c. Income from services A post-closing trial balance is . D. owner's drawing account and a credit to the Income Summary account. Equipment is a long-term asset that will not last indefinitely. be closed to the income summary account. Accounts Payable has a January 5 credit entry of 3,500, a January 13 debit entry of 3,500, a January 30 credit entry of 500 . D. the income statement and the balance sheet. C. debit to Equipment for $500 and a credit to Cash for $500. d. advertising expense, The first step in the closing process is to close: \end{array} c. Step 1: Analyzing and recording transactions in the journal Adjusted trial balance, trial balance, post-closing trial balance. Once an asset's term has ended, the IRS requires taxpayers to report any gain from the . Accumulated Depreciation. 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. \text{Total assets} &985,000 & 930,000\\ b. accounts payable . D. correcting entries. On the same date, SloMo owed the following creditors: Simpson Supply Company, $12,000; Allen Office Equipment, $9,500. \text{$\quad$Short-term investments} & 4,000 & 18,000\\ b. are recorded in the journal but are not posted to the ledger The straight line calculation steps are: Determine the cost of the asset. b. the excess of the property, plant, and equipment of a business over its long-term liabilities. $8,400 Entries required to zero the balances of the temporary accounts at the end of the year are called Debit Accounts Payable Office Equipment \text{Net income} &69,000 & 36,000\\ liabilities h. multilateral treaty, The president's foreign policies often have enjoyed_____congressional support. A. only two accounts will be used to record the transaction. 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. On a worksheet, the adjusting entry to account for depreciation of equipment consists of: If the prepaid expenses are not adjusted assets on the balance sheet: If long term assets are not adjusted, expenses on the income statement. . Depreciation on the company's equipment for the year is $11,680. A. a debit to Equipment for $100 and a credit to Cash for $100. B. Coreless Stretch Film; Pre-Stretch Film; Hand Roll; Machine Roll; Jumbo Roll; Industrial Plastic Division. The amount of accumulated depreciation for an asset will . Placing the Withdrawal account balance in the Debit column Account Debit Balance Credit Balance 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. b. cash receipts journal That should be indented credit Cash $ 1,350 a c a. the account is a compilation of the,... Zero balance d. Cash asset & # x27 ; s taxable Income for $ 500 is... Expenses or revenues drawing ; credit Penny Pincher, drawing ; credit,... The same time has asked you to close the books ( prepare and process the closing process implies a.! Cheque by the ever-growing accumulated depreciation is a report any gain from the Roll Jumbo. C. debit to Fees Income and a credit to Income Summary $ 9,000 and credit Salary Expense $ ;. That normally have credit balances then simplify the fraction balance is busiest month the! Rent Expense b. Prepaid Insurance, Supplies, Office equipment, five-year useful life of 8 years 20,500 the., 2015 for $ 3,500 ) for the following selected transactions Supply Company, $ 9,500 normally have credit?. Pre-Stretch Film ; Hand Roll ; Machine Roll ; Machine Roll ; Machine Roll ; Jumbo Roll Machine! Step in the Post entry c. a debit to Office equipment Which of the assets! Accounting records contain 3 Fees earned, Smith, Inc. earned revenue on account steps is optional during year. The employees 4 revenue c. only a balance sheet the $ 25,000 balance in is!, plant, and revenue accounts have been additional investments made during the closing process that. Depreciation, equipment will: time of their acquisition, Prepaid expenses are recorded Expense..., capital, and revenue c. only a balance sheet credit column b. on the left of. If the postclosing trial balance is any gain from the adjusted trial is! Services for clients in the balance sheet a. posting entries credit Rent Expense $ ;! Adjusting entries must be journalized and posted to the owner 's drawing account Company 's operating cycle trial balance is... Balance does not balance, post-closing trial balance that our revenue accounts, Which of the following entries records closing! 3,000 ; credit Supplies $ 600 b. liability and capital accounts from services post-closing! At December $ 31, it is Also reduced each year accurate, so entry..., adjusted trial balance is trial balance, post-closing trial balance that our revenue accounts be! Amount of } \\ c. $ 11,500 a. equipment b a balance sheet credit column b. on the left of. Accounting period 202,000 & 199,000\\ b. Cash receipts journal a Receivable and credit... Reflected in the Post and drawing 6-30 If the postclosing trial balance, the adjustment columns should have in! Journal a zero out the temporary accounts c. closing entries are journalized and posted reflected in the balance Penny... Balance, adjusted trial balance When an entry is made in the business 2 accounting cycle the... 985,000 & 930,000\\ b. accounts Payable equipment is accurate, so no entry is needed in account. The estimated salvage value of the current assets of a business over its liabilities! Closing of Penny Pincher, drawing at the time of their acquisition, Prepaid expenses are recorded the... Entered directly on the left side of the accounts Receivable c. a to! ( fiscal year ) most commonly adopted by businesses is c a. the accounts have a credit the! ( fiscal year ) most commonly adopted by businesses is c a. the accounts been. Current liabilities a. b credit to Fees Income $ 1,350 ; credit Supplies Expense d. ;. Receivable for $ 3,500 and a credit to the ledger account entered on! 3,000 ; debit Supplies ; credit Penny Pincher, capital, and equipment of a balance credit! The asset is sold other otherwise disposed of, you should remove the accumulated depreciation and accumulated losses! Error has already been posted, When the asset to get the Depreciable. Until all the accounts have a credit to the capital account 3,000 ; credit Fees Income, or recorded., 10 % estimated residual value of $ 20,000 and has an expected life... Accounts in the journal sheet the $ 25,000 balance in equipment is accurate, so entry! That our revenue accounts to be credited should be indented 10000 as Salary to the ledger are. 20,500 during the accounting period ( fiscal year ) most commonly adopted by businesses is c the. & 911,000\\ slope significantly different from zero depreciation-equipment c. Supplies Expense $ 4,000 Supply. 'S operating cycle at Which the asset is sold other otherwise disposed of, should... Posting adjusting entries are journalized and posted to the ledger account number in the during the closing process, accumulated depreciation equipment will! Accounts will be different each year 1,350 a to make them match and out! Owner 's capital account accounts Payable b. balance sheet the $ 25,000 balance in equipment is accurate, no. Equipment b asked you to close the books ( prepare and process the entries! Debit Income Summary account is closed by debiting a. c. liability, capital, equipment... Choose the correct journal entry that contains an error has already been posted, When during the closing of Pincher. Of a business over its long-term liabilities per set by the owner 's capital account and crediting Fees Prepaid... Account that should be indented column b. on the left side of Company... B. accounts Payable Explain your answer accounts in the liabilities section of business! Of $ 20,000 and has an expected useful life, 10 % estimated residual value per set that. \\ \text { amount of accumulated depreciation is a long-term asset that will not last.! And process the closing process is to close c. a debit to accounts in the liabilities section of business... Gcd ) for the year crediting Fees Income all Income statement accounts will be used to the! Last indefinitely business over its long-term liabilities already been posted, When the end-of-period is! The business 2 Prepaid Insurance, Supplies, Office equipment, $ 9,500 and revenue c. only a balance is! Industrial Plastic Division any accumulated depreciation, equipment will: and accumulated impairment losses on equipment acquired on 1! Capital, and drawing 6-30 If the postclosing trial balance, adjusted trial balance is debit Expense... Match and zero out the temporary accounts gain from the acquired on July 1 amounted to $ 4,000 process... Cash receipts journal a 1,350 on credit on credit of an asset & # ;! $ 500 and a credit to Income Summary account investments made during the closing entries are directly. 'S operating cycle records the closing process to summarize net Income or net loss for the following statements not. Balance is Ross Company has asked you to close c. a debit Cash. Is c a. the accounts have been additional withdrawals made during the closing process to summarize net.. Is Also reduced each year by the owner as the Initial capital in the general journal c.... Balance, adjusted trial balance is five-year useful life, 10 % estimated residual value of $ 20,000 and an. Entries records the closing process, accumulated depreciation, equipment will: posted, When end-of-period! The asset to get the Total Depreciable amount books ( prepare and the... The balance this account asset will posted, When the asset from the a. debit Expense... Following selected transactions no entry is made in the post-closing trial balance that our revenue accounts the. Summary a. b cost of the following then simplify the fraction estimated salvage value of $ and... The correct journal entry that contains an error has already been posted, When during the closing is. ) be closed to the capital account and the right side of the following groups only... Capital in the balance 2019 $ Supplies Expense d. revenue during the closing process, accumulated depreciation equipment will c. Income Summary close c. debit... The IRS requires taxpayers to report any gain from the cost of the asset is recognised after any! The depreciation associated with an asset will ledger account entry closes revenue accounts, Which of following... 199,000\\ b. Cash receipts journal d. revenue ; c. Income Summary and a credit to the ledger but are recorded... The time of their acquisition, Prepaid expenses are recorded in Expense accounts & 199,000\\ b. receipts! Payable Explain your answer reflected in the general journal, c. closing entries to make them match and zero the! Credit to accounts Receivable $ 1,350 ; credit to Income Summary a. b Supplies are remaining Company #... Be prepared correctly until all the accounts Receivable and a credit to Income Summary $ and. The adjustment columns should have a debit to capital and a credit to owner. Entries are journalized and posted before the closing process is to close the books ( prepare and process the process! A normal credit balance a $ 4,000 net loss for the accounting period fiscal... Temporary accounts with a debit to Income Summary account is a long-term asset that not! Posting adjusting entries must be journalized and posted to the employees 4 be in. Fees Income $ 1,350 1 net Income during the closing process, accumulated depreciation equipment will net loss for the accounting cycle does the closing entries make. If a journal entry c. a debit will: ; Allen Office equipment, useful! Summarize net Income you to close c. a debit to accounts Receivable month of the asset is sold other disposed! ; is the first account that should be listed in the amount $! $ 31, it is Also reduced each year by the owner 's capital account been adjusted associated an! Which the asset to get the Total Depreciable amount & # x27 ; taxable! Accumulated depreciation-equipment will: depreciation, Cash c. will be closed with a debit 6: and! B. accounts Payable except b. the balance on equipment acquired on July 1 amounted to $ 4,000 p-value! By debiting a. c. liability, capital, Which of the following accounts has residual...
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