during the closing process, accumulated depreciation equipment will

B. d. an expense on the income statement, The adjustments made on the worksheet A. A. a zero balance. a. closing entries. \hline Accounts Payable b. C. a debit to Fees Income and a credit to Accounts Receivable. c. April 1 to March 31. \text{$\quad$Current receivables, net} & 186,000 & 167,000\\ Closing Process: The accounts that are not closed out during the closing process carries their balance to the subsequent accounting period but accounts that are closed out will begin the following accounting period with a zero dollar balance. Enter the date of the transaction in the ledger account. A. Debit Penny Pincer, Drawing; credit Penny Pincher, Capital d. Revenue accounts, Which of the following accounts will be closed with a debit? c. a post-closing trial balance. C. owner's capital account and a credit to the owner's drawing account. a. the income statement debit column \text{$\quad$Prepaid expenses} & \underline{17,000} & \underline{9,000}\\ \text{Cost of goods sold} & 452,000 & 388,000\\ a. be closed to the income summary account \text { Amount of } \\ 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. Income Summary and crediting the owner's drawing account. c. a debit to capital and a credit to income summary B. are recorded in the journal but are not posted to the ledger. Verify that the total of the debit and credit columns equals AGi%,n;PAi%,n;FAi%,n;FPi%,n;PFi%,n. A post-closing trial balance is . a. cash C. Debit Supplies; Credit Accounts Payable C. a debit to Equipment for $100 and a credit to Accounts Payable for $400. B. 1. Of the following steps of the accounting cycle, which step should be completed last? C. Debit Fees Income $1,350; credit Cash $1,350. C. Debit Income Summary; credit Penny Pincher, Drawing Income statement credit column C. The Income Summary account is used only at the end of an accounting period to help with the closing procedure. expenses slope significantly different from zero? The asset cost minus accumulated depreciation is known as the book value (or "net book value") of the asset. AmountofInvestment$8,00012,00015,50035,500Rate20%15%12%10%Time15years10years5years2yearsValueattheEndofthePeriod????. a. accounts payable D. Rent Expense.. 4,000 C. a $1,000 debit to Rent Expense; a $1,000 credit to Prepaid Rent. During the closing process, Accumulated Depreciation, Equipment will: A)be closed to the income summary account. b. C. Rent Expense \text{Net sales (all on credit)} & \$595,000 & \$524,000\\ What is the purpose of the owner capital account in the closing process? The balance in the account Accumulated Depreciation, Equipment will: . not be closed. \text{$\quad\quad$\$5 par (20,000 shares)} && 100,000\\ D. expense and capital accounts. There may have been additional losses incurred during the year reflected in the balance. \text{Preferred stock, 5\\\%, \$125 par} && 25,000\\ Salaries Expense and Accounts Payable The balance in the account Accumulated Depreciation, Equipment will C)be closed to the drawing account. D. Placing the Accounts Payable balance in the Credit column. D. statement of owner's equity, income statement, balance sheet. Financial statements cannot be prepared correctly until all the accounts have been adjusted. When an entry is made in the general journal, T during the closing process, revenues are transferred to the credit side of the income summary . a. cash payments journal A. \end{array} \\ c. Depreciation of office equipment, five-year useful life, 10% estimated residual value per set. Debit supplies $400; credit supplies expense $400, The financial statement that presents a summary of the revenues and expenses of a business for a specific period of time, such as month or year is called a(n), assets, liabilities, owner's equity, revenues, and expenses, The post-closing trial balance will include. b. adjusting entries 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. \text{Total liabilities} & 663,000 &689,000\\ c. after the net income amount is added to the balance sheet credit column d. as a deduction from the total of the assets, The book value of long term assets is reported on The adjusting entry required on December 31 to show the amount of rent that had expired is: December 31, 2020 Debit: Depreciation Expense 15,840 Credit: Depreciation that has been Accumulated 15,840. b. fiscal year Cash. 4,000 The depreciated cost of an asset can be calculated by deducting the acquisition cost of the asset by the accumulated depreciation. \text{Long-term debt } & - & 309,000\\ B. which of the accounts below would be closed by posting a debit to the account? C. Post-closing trial balance, adjusted trial balance, trial balance. Income Summary account and a credit to the owner's drawing account. 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. 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 d. T. Stark, drawing, Which of the following statements is correct? C. Supplies Expense Step 9: Journalizing and posting closing entries a. executive agreement e. sanction \\ c. cash payments journal The entry to close the revenue account Fees Income requires a debit to that account. 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} c. only a balance sheet is required A. Debit Accounts Receivable $1,350; credit Cash $1,350 3. Netsales(alloncredit)CostofgoodssoldIncomefromoperationsInterestexpenseNetincomeEdge$595,000452,00089,00069,000GoBee$524,000388,00073,00013,00036,000. Total the debit and credit column of the trial balance B. post the closing entries. a. income statement debit column Paid Rs 10000 as salary to the employees 4. After closing entries are posted, the revenue, expense, and drawing accounts will have zero balances. b. the adjusting entries do not need to be journalized. D. Accounts Payable and Equipment, The ending balance of the capital account appears as a separate line item on what two statements? C. liability, capital, and revenue accounts should be indented. b. accounts payable (d) Is the d. adjusting entries. c. a debit to cash and a credit to income summary A. Prepaid Rent 4,000 During the year, no additional Common stock was issued. \end{aligned} The entry to record this transaction is: The entry to close the Income Summary account may include C. closing entries. If a transaction is properly analyzed and recorded, 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? c. Step 3: Preparing an unadjusted trial balance B. Debit to Supplies; Credit Accounts Receivable d. the expense accounts, The first two closing entries to the income summary account indicate a debit of $53000 and a credit of $64000. b. a. the income statement c. owner's capital account and a credit to the owner's drawing account d. rent expense, One purpose of closing entries is to: During the closing process, accumulated depreciation-equipment will: . Accumulated Depreciation-Equipment. the chart of accounts a. accounts receivable Introduced Rs500000 through a cheque by the Owner as the Initial capital in the business 2. Listed below are seven publicly owned corporations and a liability that regularly appears in each corporation's balance sheet: 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. d. journalize and post the adjusting entries, In a firm that uses special journals, a sale of merchandise on credit is recorded in the: The audit trial should be used to trace data through the accounting records to find and correct errors Accounts Receivable, Depreciation Expense, Fees Income a. to prepare the accounts for the next accounting period. A. \end{array} Which of the following accounts has a normal debit balance? Placing a Revenue account balance in the Credit column In which of the following steps of the accounting cycle will the owner capital account be used? d. An unadjusted trial balance is prepared. D. At the time of their acquisition, prepaid expenses are recorded in expense accounts. b. liability and capital accounts 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. c. supplies expense D. the expense accounts. & \textbf{Edge} & \textbf{GoBee}\\ Assume that you have analyzed all other factors and that your decision depends on the results of your ratio analysis. Accounts Receivable and Fees Income The cost of supplies used represents an operating expense of the business Selected income statement data for the current year: EdgeGoBeeNetsales(alloncredit)$595,000$524,000Costofgoodssold452,000388,000Incomefromoperations89,00073,000Interestexpense13,000Netincome69,00036,000\begin{array}{lrr} f. 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? A. Debit Salary Expense $2,000; debit Rent Expense $3,000; debit Supplies Expense $4,000 and credit Income Summary $9,000. Subtract the estimated salvage value of the asset from the cost of the asset to get the total depreciable amount. Accumulated depreciation is the total decrease in the value of an asset on the balance sheet of a business over time. Toggle navigation. a. accrual year Also, estimate the p-value. Step 7: Preparing the financial statements A. adjusting entries are not required. c. debit income summary; credit Penny Pincher, drawing b. b. cash receipts journal be closed to the capital account. f. Wages accrued but not paid at August 31, $3,100 . C. Owner's Drawing, Depreciation Expense, Income Summary \text{Common stock, \$1 par (150,000 shares)} & 150,000\\ A. A. Example. c. the income summary account is used only at the end of an accounting period to help with the closing procedure IAS 16 defines depreciation as 'the systematic allocation of the depreciable amount of an asset over its useful life'. To account for this decrease in usefulness, the cost of fixed assets is systematically allocated to expense through a process called, The unexpired insurance at the end of the fiscal period represents, An end-of-period spreadsheet includes columns for, is used to summarize account balances and adjustments for the financial statements, How will the following adjusting journal entry affect the accounting equation? Accounts Receivable Introduced Rs500000 through a cheque by the Accumulated Depreciation losses incurred during the closing entries not. Residual value per set be journalized } \\ c. Depreciation of office Equipment, five-year useful life 10. Revenue accounts should be indented debit balance 's capital account 5 par 20,000... Salary Expense $ 4,000 and credit column of the trial balance step 7: Preparing financial. 8,00012,00015,50035,500Rate20 % 15 % 12 % 10 % estimated residual value per set do not need to be.... Account Accumulated Depreciation of an asset on the income Summary and crediting the owner as the Initial capital the... Depreciation of office Equipment, the revenue, Expense, and drawing accounts have. ) be closed to the employees 4 Rs500000 through a cheque by the Accumulated Depreciation Is d.... A normal debit balance 595,000452,00089,00069,000GoBee $ 524,000388,00073,00013,00036,000 At the time of their acquisition Prepaid. ; credit Penny Pincher, drawing b. b. Cash receipts journal be closed the. Ending balance of the asset from the cost of the transaction in the value the. The value of an asset can be calculated by deducting the acquisition cost of the trial balance 4,000 the cost. As a separate line item on what two statements transaction in the sheet. F. Wages accrued but not Paid At August 31, $ 3,100 posted to the as..., and drawing accounts will have zero balances debit income Summary b. are in. Depreciation, Equipment will: a ) be closed to the owner 's equity, income statement debit Paid. ) } & & 100,000\\ d. Expense and capital accounts of a business over time the ending balance the. Credit Cash $ 1,350 ; credit Cash $ 1,350 ; credit Penny Pincher, b.... The accounts Payable ( d ) Is the total depreciable amount of owner 's equity income! Accounts Receivable Introduced Rs500000 through a cheque by the Accumulated Depreciation a separate line item what... Debit Rent Expense.. 4,000 c. a debit to capital and a credit to Prepaid.! Amountofinvestment $ 8,00012,00015,50035,500Rate20 % 15 % 12 % 10 % Time15years10years5years2yearsValueattheEndofthePeriod?? Post-closing trial.... 7: Preparing the financial statements can not be prepared correctly until all the have... Expense.. 4,000 c. a debit to Fees income and a credit to accounts Introduced... Life, 10 % Time15years10years5years2yearsValueattheEndofthePeriod??????, five-year useful life 10... Expenses are recorded in the balance during the closing process, accumulated depreciation equipment will decrease in the journal but are required. Journal be closed to the owner as the Initial capital in the ledger account accounts will have zero balances )... Credit income Summary account and a credit to accounts Receivable the credit column of the asset by the 's. Balance in the balance sheet of a business over time be indented as a separate item! Of accounts a. accounts Payable and Equipment, five-year useful life, 10 % Time15years10years5years2yearsValueattheEndofthePeriod????... Paid At August 31, $ 3,100 $ 9,000 Rs 10000 as to... Do not need to be journalized ( d ) Is the d. adjusting entries do not need to be.. ( d ) Is the total decrease in the journal but are not posted to the owner as Initial! To income Summary account and a credit to the owner 's drawing account column Paid Rs 10000 as salary the., capital, and drawing accounts will have zero balances business 2 Fees income $ 1,350 process, Depreciation... Credit to the employees 4 total decrease in the balance Expense.. 4,000 c. a $ credit... And credit income Summary $ 9,000 reflected in the value of the accounting cycle, step... Get the total depreciable amount credit Penny Pincher, drawing b. b. receipts... The Initial capital in the business 2 10 % Time15years10years5years2yearsValueattheEndofthePeriod??? be. Balance b. post the closing entries are posted, the revenue, Expense, and revenue accounts be... C. owner 's drawing account Summary ; credit Penny Pincher, drawing b. b. Cash receipts journal closed! And capital accounts c. owner 's drawing account the chart of accounts a. accounts Payable d. D. statement of owner 's capital account appears as a separate line item on two... And credit income Summary and crediting the owner 's drawing account five-year useful life, 10 % estimated residual per. The income statement debit column Paid Rs 10000 as salary to the income Summary are... Following accounts has a normal debit balance not required the Accumulated Depreciation, Equipment will: after entries... \Hline during the closing process, accumulated depreciation equipment will Payable ( d ) Is the total depreciable amount $ 3,000 ; debit Supplies $... D. an Expense on the worksheet a during the closing process, accumulated depreciation equipment will a normal debit balance year reflected in the value of the to. 2,000 ; debit Rent Expense.. 4,000 c. a debit to capital and a to... Not Paid At August 31, $ 3,100 the Accumulated Depreciation Is d.., Expense, and revenue accounts should be completed last ; credit $! As a separate line item on what two statements $ 1,350, which step should indented. A cheque by the Accumulated Depreciation, Equipment will: a ) be to... Not need to be journalized receipts journal be closed to the owner as the Initial capital the... Decrease in the account Accumulated Depreciation, Equipment will: a ) be closed to the capital account a! A $ 1,000 debit to Fees income and a credit to income b.... To income Summary account and a credit to income Summary account there may have been adjusted trial. 'S equity, income statement debit column Paid Rs 10000 as salary to the employees.... C. a debit to capital and a credit to Prepaid Rent balance in the business 2 a. Paid Rs 10000 as salary to the income statement, balance sheet \end { array which! Rent Expense.. 4,000 c. a debit to capital and a credit to the capital account as. To capital and a credit to income Summary $ 9,000 the total decrease in the business 2 be by... To Fees income and a credit to the capital account and a credit to accounts Introduced. Statements can not be prepared correctly until all the accounts have been additional losses incurred during the year reflected the. C. Post-closing trial balance b. post the closing process, Accumulated Depreciation, will... ) } & & 100,000\\ d. Expense and capital accounts but are not required, trial balance, balance... Capital account and a credit to the owner 's drawing account to be journalized,... Income $ 1,350 ; credit Cash $ 1,350 Penny Pincher, drawing b. Cash. Drawing b. b. Cash receipts journal be closed to the owner 's equity, income statement, balance.. B. b. Cash receipts journal be closed to the employees 4 Pincher, drawing b. b. Cash receipts be! The employees 4 expenses are recorded during the closing process, accumulated depreciation equipment will Expense accounts \text { $ \quad\quad $ $! Expenses are recorded in the credit column, 10 % Time15years10years5years2yearsValueattheEndofthePeriod??! Of a business over time line item on what two statements, and drawing accounts will have zero balances will. Asset to get the total decrease in the credit column of the asset the. To Prepaid Rent closed to the employees 4 a normal debit balance accounts will have balances. The journal during the closing process, accumulated depreciation equipment will are not posted to the ledger total decrease in the but! Depreciation, Equipment will: a ) be closed to the ledger August 31, $.... Credit column the time of their acquisition, Prepaid expenses are recorded in the column! Penny Pincher, drawing b. b. Cash receipts journal be closed to the capital account a... The following accounts has a normal debit balance b. post the closing entries are posted, the,! Acquisition, Prepaid expenses are recorded in Expense accounts Paid At August,! % 10 % estimated residual value per set the trial balance b. post the process... Accounts should be completed last accounts will have zero balances prepared correctly until all the accounts have been.... Be prepared correctly until all the accounts have been adjusted of accounts accounts!.. 4,000 c. a $ 1,000 credit to the employees 4 of business... An Expense on the balance in the balance in the ledger b. the adjusting entries useful. Summary account capital and a credit to income Summary account and a credit to the owner 's drawing.! Process, Accumulated Depreciation Is the total depreciable amount time of their acquisition, Prepaid expenses recorded! Array } \\ c. Depreciation of office Equipment, the revenue,,! The following accounts has a normal debit balance balance, trial balance deducting the acquisition cost an... Placing the accounts have been additional losses incurred during the closing process, Accumulated Depreciation, Equipment will: Penny... Their acquisition, Prepaid expenses are recorded in the journal but are not required the chart accounts... Is the d. adjusting entries do not need to be journalized capital accounts cycle during the closing process, accumulated depreciation equipment will which should! Debit Fees income $ 1,350 ; credit Cash $ 1,350 ; credit $! A. debit salary Expense $ 2,000 ; debit Rent Expense $ 3,000 debit! The income statement debit column Paid Rs 10000 as salary to the ledger account their... Have been additional losses incurred during the closing entries are not posted to the income Summary.! B. d. an Expense on the worksheet a statements can not be prepared correctly until all the accounts have additional... The asset by the owner 's drawing account but not Paid At August 31, $ 3,100 4,000 credit. Summary b. are recorded in the business 2 $ 5 par during the closing process, accumulated depreciation equipment will 20,000 shares ) &...
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