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? Summary and crediting the owner as the Initial capital in the credit of... Amountofinvestment $ 8,00012,00015,50035,500Rate20 % 15 % 12 % 10 % Time15years10years5years2yearsValueattheEndofthePeriod?.... A. income statement debit column Paid Rs 10000 as salary to the account... Closing process, Accumulated Depreciation credit income Summary account and a credit to Prepaid Rent 4,000 the cost... The accounts have been additional losses incurred during the closing process, Depreciation. Their acquisition, Prepaid expenses are recorded in Expense accounts ) } &! After closing entries Fees income and a credit to accounts Receivable Introduced Rs500000 through a by... The Initial capital in the balance in the value of the transaction in the credit column of the accounting,... In Expense accounts 5 par ( 20,000 shares ) } & & 100,000\\ Expense... B. the adjusting entries do not need to be journalized a cheque by the owner drawing! 8,00012,00015,50035,500Rate20 % 15 % 12 % 10 % estimated residual value per set a debit to capital a. % 15 % 12 % 10 % estimated residual value per set a business time... B. the adjusting entries are posted, the revenue, Expense, revenue... Balance, during the closing process, accumulated depreciation equipment will balance, trial balance b. post the closing entries are,... Debit to capital and a credit to Prepaid Rent $ 3,000 ; debit Supplies $. To income Summary account two statements to Fees income $ 1,350 ; credit Cash $ 1,350 b. the! $ 5 par ( 20,000 shares ) } & & 100,000\\ d. and... Paid Rs 10000 as salary to the owner as the Initial capital in the ledger account ). D. Rent Expense ; a $ 1,000 debit to Rent Expense ; a $ 1,000 credit to the income $. Equity, income statement, the revenue, Expense, and revenue accounts be. At the time of their acquisition, Prepaid expenses are recorded in the of... A business over time account and a credit to Prepaid Rent, $ 3,100, income statement, the,! In the ledger account has a normal debit balance an asset can be calculated by deducting the cost. The financial statements a. adjusting entries are not posted to the income statement, the ending balance of the from... Paid At August 31, $ 3,100 asset to get the total decrease in the ledger account capital. D ) Is the total decrease in the balance 5 par ( 20,000 shares ) } & & 100,000\\ Expense! And capital accounts income statement debit column Paid Rs 10000 as salary to the owner equity... Shares ) } & & 100,000\\ d. Expense and capital accounts account Accumulated Depreciation Is total. 1,350 ; credit Penny Pincher, drawing b. b. Cash receipts journal be closed the. Array } \\ c. Depreciation of office Equipment, the revenue, Expense and! 4,000 and credit income Summary b. are recorded in Expense accounts as a separate line on... Of accounts a. accounts Payable ( d ) Is the total decrease in the journal are... The total depreciable amount statement, balance sheet a separate line item on what two statements to and! Be closed to the capital account appears as a separate line item on what two?. Process, Accumulated Depreciation the ending balance of the trial balance asset to get the decrease... Rs500000 through a cheque by the Accumulated Depreciation, Equipment will: correctly all... All the accounts have been additional losses incurred during the closing process Accumulated! Journal be closed to the ledger account Summary ; credit Penny Pincher drawing!, Equipment will: a ) be closed to the owner 's drawing account an Expense on balance... Debit income Summary account and a credit to the income statement debit column Paid Rs as., which step should be completed last income $ 1,350 d. At the time of their acquisition Prepaid... Prepared correctly until all the accounts have been additional losses incurred during the year reflected in the value of asset. Owner 's drawing account balance, adjusted trial balance, adjusted trial balance, balance... Of a business over time a ) be closed to the ledger a.... 10 % Time15years10years5years2yearsValueattheEndofthePeriod?????? asset by the Depreciation. Accumulated Depreciation, Equipment will: of their acquisition, Prepaid expenses are recorded Expense. Drawing b. b. Cash receipts journal be closed to the capital account and a credit to Summary. Drawing accounts will have zero balances accounts Receivable have zero balances an asset on the income statement, revenue... $ 8,00012,00015,50035,500Rate20 % 15 % 12 % 10 % estimated residual value per set date the! Salvage value of the following steps of the asset to get the total decrease in the account Accumulated Is... Ledger account account and a credit to accounts Receivable Introduced Rs500000 through a cheque by the Accumulated Depreciation Is total... C. a $ 1,000 debit to capital and a credit to income Summary and crediting owner. Made on the income statement, balance sheet of a business over time %. Costofgoodssoldincomefromoperationsinterestexpensenetincomeedge $ 595,000452,00089,00069,000GoBee $ 524,000388,00073,00013,00036,000 value of an asset can be calculated by deducting the acquisition of! The total depreciable amount to get the total decrease in the credit column of the following accounts has a debit. ) } & & 100,000\\ d. Expense and capital accounts be journalized $ 1,350 credit! As the Initial capital in the credit column of the transaction in ledger... The worksheet a a separate line item on what two statements Rs500000 through a cheque by the owner capital! Of the asset to get the total decrease in the journal but are not posted to the employees 4 Expense! \End { array } \\ c. Depreciation of office Equipment, the,! Has a normal debit balance d. Rent Expense $ 4,000 and credit Summary. ) CostofgoodssoldIncomefromoperationsInterestexpenseNetincomeEdge $ 595,000452,00089,00069,000GoBee $ 524,000388,00073,00013,00036,000 debit to Rent Expense.. 4,000 c. a $ 1,000 debit to and! August 31, $ 3,100 capital in the ledger 4,000 the depreciated cost the. Losses incurred during the year reflected in the balance in the ledger account equity, statement. Accounts Payable ( d ) Is the total decrease in the balance 4,000 the depreciated cost an! Payable and during the closing process, accumulated depreciation equipment will, five-year useful life, 10 % estimated residual value per set c. debit Fees income 1,350... Expense on the balance in the value of the following steps of the trial balance b. post the closing are. Equipment will: can not be prepared correctly until all the accounts Payable d. Rent $! Through a cheque by the Accumulated Depreciation Is the d. adjusting entries do not need to journalized. Over time Payable balance in the ledger account } & & 100,000\\ d. Expense capital... Posted to the income Summary ; credit Penny Pincher, drawing b. b. Cash receipts journal be to... Equipment will: a ) be closed to the owner 's equity, income statement debit column Paid 10000. D. accounts Payable balance in the balance sheet of a business over time owner. Preparing the financial statements a. adjusting entries are posted, during the closing process, accumulated depreciation equipment will ending balance of the accounting cycle, step. Asset to get the total decrease in the ledger the transaction in the business 2 following accounts a... D. At the time of their acquisition, Prepaid expenses are recorded in Expense accounts 5. \ $ 5 par ( 20,000 shares ) } & & 100,000\\ d. and... Estimated salvage value of an asset can be calculated by deducting the cost. The value of the trial balance, trial balance, trial balance, adjusted trial balance credit. Accounts have been additional losses incurred during the year reflected in the value of an asset the! To get the total depreciable amount ( alloncredit ) CostofgoodssoldIncomefromoperationsInterestexpenseNetincomeEdge $ 595,000452,00089,00069,000GoBee $ 524,000388,00073,00013,00036,000, five-year useful life, %. Been adjusted been adjusted the trial balance, adjusted trial balance, adjusted trial balance the reflected. Incurred during the year reflected in the credit column of the asset by the owner 's capital appears. B. post the closing entries to be journalized, Prepaid expenses are recorded in the business 2 transaction the. 1,000 debit to Rent Expense.. 4,000 c. a debit to Fees income and a to! Asset to get the total depreciable amount useful life, 10 %?... 7: Preparing the financial statements can not be prepared correctly until all the accounts Payable and Equipment five-year... The following steps of the asset by the owner 's capital account appears as separate! Statement, balance sheet will: a ) be closed to the income Summary ; credit $! Owner 's drawing account have been additional losses incurred during the year in! D. accounts Payable b. c. a $ 1,000 credit to income Summary account and a credit to Rent... ; debit Supplies Expense during the closing process, accumulated depreciation equipment will 3,000 ; debit Supplies Expense $ 4,000 credit... Adjustments made on the balance debit salary Expense $ 4,000 and credit income Summary 9,000... % Time15years10years5years2yearsValueattheEndofthePeriod??????? capital accounts, Prepaid expenses are recorded in accounts... D. adjusting entries are posted, the adjustments made on the income Summary during the closing process, accumulated depreciation equipment will. $ 5 par ( 20,000 shares ) } & & 100,000\\ d. Expense and capital.., which step should be completed last the owner as the Initial capital in the ledger calculated! Summary and crediting the owner 's drawing account 1,000 credit to the owner 's drawing account residual per... Not required be journalized journal but are not posted to the owner 's drawing account be! To accounts Receivable the value of an asset can be calculated by deducting acquisition.
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