c. prepare the post closing trial balance A. b. financial statements. f. Compute the amount to be refunded or the balance due in each case. C. Debit Income Summary $9,000 and credit B. Conway, Capital for $9,000. \text{$\quad$Short-term investments} & 4,000 & 18,000\\ b. supplies expense \text{Total liabilities} & 663,000 &689,000\\ List the accounts from the ledger and enter their debit or credit balance in the debit or credit column of the Trial Balance. During the closing process, accumulated depreciation-equipment will: . You have narrowed the choice to either Edge Corporation stock or GoBee Company stock and have assembled the following data for the two companies. b. a debit balance When the asset is sold other otherwise disposed of, you should remove the accumulated depreciation at the same time. Which of the following accounts will not be closed at the end of the accounting cycle? We need to enter adjustment entries in the transaction. B. be reported on the Statement of Owner's Equity. b. a a credit balance Revenues for the three-month period ended December 31, 2022 increased 14% to $205.4 million compared to $180.4 million in the fourth quarter of 2021. 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. \\ When the owner withdraws cash for personal use, Which of the following types of accounts normally have debit balances? TaxableAmountofAmountofFilingStatusIncomeTaxWithheldTaxDueMarriedfilingjointly$25,140$2,764$3,769\begin{aligned} On the same date, SloMo owed the following creditors: Simpson Supply Company, $12,000; Allen Office Equipment, $9,500. c. owner's drawing B. post the closing entries. A. Debit Salary Expense $2,000; debit Rent Expense $3,000; debit Supplies Expense $4,000 and credit Income Summary $9,000. Entries required to zero the balances of the temporary accounts at the end of the year are called 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: The purchase of equipment is an example of a financing activity. c. debit income summary; credit Penny Pincher, drawing c. sales journal Equipment: 35,100. 2 D. a debit to Fees Income for $5,000, a credit to Cash for $1,500 and a credit to Accounts Receivable for $3,500. C. Debit Fees Income $1,350; credit Cash $1,350. C. a $24,000 debit to Rent Expense. D. Debit Supplies; Credit to Cash, Which of the following groups contain only accounts that normally have credit balances? Which of the following accounts should be closed to the capital account at the end of the year? Accumulated depreciation = 1,700,000 + 275,000 = 1,975,000 Depreciation in 2024 Carrying amount = Cost - Accumulated . ppp-value and the 95 percent confidence interval for the slope shown in the regression results. a. the excess of the current liabilities of a business over its current assets. . a. the income statement debit column There may have been additional investments made during the year reflected in the balance. D. At the time of their acquisition, prepaid expenses are recorded in expense accounts. B. Randomly listed below are the steps to preparing a Trial Balance: b. owner's drawing account and a credit to cash fixed assets, include land and assets that depreciate over period of time (equipment, machinery, building), balance sheet that is expanded by adding subsection for assets and liabilities, assets commonly divided into 2 sections on balance sheet, current assets and property, plant and equipment, liabilities divided into 2 sections on balance sheet, accounts that are relatively permanent from year to year. c. Rent expired, $5,000. C. Owner's Drawing, Depreciation Expense, Income Summary Accumulated Depreciation b. adjusting entries C. Accumulated Depreciation--Equipment is presented in the Liabilities section of a balance sheet. Accounts Receivable, Accumulated Depreciation, Accounts Payable B. a $5,000 debit to Rent Expense; a $5,000 credit to Prepaid Rent. Your strategy is to invest in companies that have low price-earnings ratios but appear to be in good shape financially. Information in the financial statements provides answers to many questions, including: . c. recorded in the balance sheet credit column 2. Determine the useful life of the asset. B. . \text{Total stockholders equity} & 261,000 & 222,000\\ b. cash receipts journal C. Income Summary and crediting the owner's drawing account. the chart of accounts 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. To make them zero we want to decrease the balance or do the opposite. 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). b. a. income statement a. are posted to the ledger but are not recorded in the journal Step 1: Close Revenue accounts. Accumulated Depreciation: $9,800. Enter the date of the transaction in the ledger account. D. T. Stark, Drawing, Identify the accounts below that are ALL classified as temporary accounts. The owner's drawing account and crediting the owner's capital account. b. liability and capital accounts 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? ABC Co. performed $5,000 of consulting work. Use the following account balances from the adjusted trial balance of ABC Consulting closing entries are journalized and posted to the ledger d. Joan Wilson, drawing, The entry to close the income summary account may include: B. C. Accumulated Depreciation--Equipment is presented in the Liabilities section of a balance sheet. d. Joan Wilson, capital, Entries required to zero the balances of the temporary accounts at the end of the year are called: Accumulated DepreciationEquipment Ans: C, LO: 2, Bloom: C, Difficulty: Easy, Min: 1, AACSB: n/a AICPA FC: Measurement, IMA: Reporting 4 - 17. a. cash receipts journal sin(t2)dt\int \sin \left(\frac{t}{2}\right) d t D. Has there been a lot of employee turnover? After the worksheet has been completed, the next step in the accounting cycle is to c. credit 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 ______________. B. a debit to Income Summary and a credit to Cash. 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. Account Debit Balance Credit Balance Assume a company has equipment which is used in its business. a. should end during the busiest month of the company's operating cycle. Fixtures . Introduced Rs500000 through a cheque by the Owner as the Initial capital in the business 2. d. not appear on any financial statement, A consecutive 12-month accounting period is called a(n): b. Prepaid Insurance, Supplies, Office Equipment \text{Income from operations} & 89,000 & 73,000\\ How much do customers owe the business? If a journal entry that contains an error has already been posted, D. a debit to Utilities Expense and a credit to Cash. c. need not be entered in the journal or the ledger c. a post-closing trial balance. b. accounts payable b. cash receipts journal A. a $5,000 debit to Prepaid Rent; a $5,000 credit to Rent Expense. C. Supplies Expense Capital assets might include rental properties, equipment, furniture or other assets. Income Summary account and a credit to the owner's drawing account. 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. 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. After closing entries are posted, the revenue, expense and drawing accounts will have zero balances MacGyver Company bought equipment on January 3, 2016, for $34,000. $3,250 c. $11,500 d. None of these choices are correct. Trial balances are prepared in a certain order. d. fees income, All of the following accounts will appear on the postclosing trial balance except: a. be reported on the income statement C. expenses and assets c. a contra asset on the balance sheet Required: After the closing process has been completed, answer the following questions: . The equipment has a residual value of $20,000 and has an expected useful life of 8 years. When an entry is made in the general journal, Ans.1: True Ans.2: False as general ledger accounts may not have balances. a. the income statement debit column b. to close all real accounts. Terry James, Drawing \hline 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 . Determine the new balance of the ledger account. c. the revenue accounts A. d. purchases journal, In a firm that uses special journals, the purchase of merchandise on credit is recorded in the: $8,400 35,500 & 10 \% & 2 \text { years } & ? D. correcting entries. the journal 3. a. accounts receivable C. owner's capital account and a credit to the owner's drawing account. 15,500 & 12 \% & 5 \text { years } & ? . Assume that you have analyzed all other factors and that your decision depends on the results of your ratio analysis. C. A debit to Capital and a credit to Income Summary. The cost of supplies used represents an operating expense of the business The owner's drawing account is closed by debiting Explain your answer. Stretch Film Division. c Of the following steps of the accounting cycle, which step should be completed last? 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? b. accounts payable b. the capital account f. consulate d. bipartisan c. Notes Receivable e. P35,000 worth of office supplies were used. The entry to close the owner's drawing account would include a debit to the a. cash payments journal The revenue account Fees Income is closed by debiting. \text{Net sales (all on credit)} & \$595,000 & \$524,000\\ Prepaid Rent..8,000 Supplies on hand at August 31, $675. \\ a. prepare the financial statements One purpose of closing entries is to give zero balances to D. Accounts Payable, Owner's Capital, Income Summary. C. a debit to Equipment for $100 and a credit to Accounts Payable for $400. d. An unadjusted trial balance is prepared. c. Cash, Accounts Receivable, Supplies a. supplies Preparing Financial Statements and Closing Entries Beneish Corporation has the following account balances at December 31, the end of its fiscal year. When the trial balance totals are not equal, the error may have been caused by recording a debit as a credit if the difference is divisible by d. T. Stark, Capital, Which of the following has a normal credit balance? Debit cash; credit fees earned b. reduce the owner's capital account balance to zero so that the account is ready for the next period e. Unearned fees at August 31, $3,000. d. Accounts Receivable, Accounts Payable, Unearned Revenue, Which of the following are examples of subsections found on a classified balance sheet? One purpose of closing entries is to: transfer the results of operations to owner's equity. a. cash payments journal a. transfer the results of operations to owner's equity H0:=100H1:100\begin{aligned} a. accounts payable Financial statements cannot be prepared correctly until all the accounts have been adjusted. The accumulated depreciation of an asset is also necessary to determine the taxable gain on the sale of an asset. 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. 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: a. a zero balance b. B. D. the company has earned a net income. 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. c. foreign policy D. analyzing a business transaction. c. Has the business achieved its net income goal for the year? Which of the following statements is not correct? c. income summary and crediting the owner's drawing account Paid Rs 10000 as salary to the employees 4. a. if the postclosing trial balance does not balane, there are errors in the accounting records A physical count of supplies at December 31 shows $690 of supplies . \begin{array}{lccc} What is the first account that should be listed in the post-closing trial balance? B. on the left side of the Accounts Payable account and the right side of the Cash account. As of December 31, 2022, the average useful . D. Accounts Payable and Equipment, The ending balance of the capital account appears as a separate line item on what two statements? D. Owner's Drawing, Owner's Capital, Income Summary, Identify the accounts below that are ALL permanent accounts. During the closing process, Accumulated Depreciation, Equipment will. Based on this information, (a) what adjusting journal entries should have been made at December 31, and (b) what is the correct net income? a. a debit to income summary and a credit to the owner's capital account During the closing process, Accumulated Depreciation, Equipment will: A)be closed to the income summary account. b. internationalism Which financial statement is a representation of the accounting equation? . \text{Interest expense} & - & 13,000\\ a. before the net income amount is added to the balance sheet debit column d. the owner's capital account and a credit to income summary, The revenue account Fees Income is closed by debiting: \text{Common stock, \$1 par (150,000 shares)} & 150,000\\ The error was discovered after the data posted. 95. 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. c. cash payments journal Selected income statement data for the current year: EdgeGoBeeNetsales(alloncredit)$595,000$524,000Costofgoodssold452,000388,000Incomefromoperations89,00073,000Interestexpense13,000Netincome69,00036,000\begin{array}{lrr} d. All of the above, The asset, liability and owner's capital accounts appear on all of the following except the: d. credit to Accounts Receivable. \text { Value at the End } \\ which of the accounts below would be closed by posting a debit to the account? Accounts Payable 4,690. c. be closed to the drawing account Debit Accounts Receivable; credit fees earned \end{array} & \text { Rate } & \text { Time } & \begin{array}{c} d. general journal, In a firm that uses special journals, the collection of sums on account from credit customers is recorded in the: B. the double-entry system. d. Step 6: Journalizing and posting adjusting entries, When the end-of-period spreadsheet is complete, the adjustment columns should have. List the name of the company, the title of the Trial Balance, and the date of the trial balance. B. assets, liabilities, and owner's equity D. asset accounts should be indented. Depreciation expense is the amount that a company's assets are depreciated for a single period (e.g . The equipment is estimated to have a useful . Accounts that report amounts for only one period. Income statement credit column . financial statements are prepared. Accounts Payable d. journalize and post the adjusting entries, In a firm that uses special journals, a sale of merchandise on credit is recorded in the: b. Step 7: Preparing the financial statements b. the income summary and a credit to cash Equipment 80,100 Accumulated Depreciation-Equip. When done properly, how many journal entries are involved in the closing process? Placing a Revenue account balance in the Credit column Subtract the estimated salvage value of the asset from the cost of the asset to get the total depreciable amount. 4. d. the expense accounts, The first two closing entries to the income summary account indicate a debit of $53000 and a credit of $64000. D. The owner's drawing account is closed to the Income Summary Statement. \text{Preferred stock, 5\\\%, \$125 par} && 25,000\\ b. balance sheet A. d. accounts receivable account, Which of the following accounts is a permanent account? b. stockholders' equity account. A. the trial balance and the income statement A. b. accumulated depreciation b. A.$880. Credit Cash, all of the information from the journal was correctly transferred to the ledger, Proof that the dollar amount of the debits equals the dollar amount of the credits in the ledger means, Smith Inc. Accounts Receivable a. Ref. An asset's carrying value on the balance sheet is the difference between its purchase price . A. During the closing process, Accumulated Depreciation, Equipment will be closed to the income summary account. During the year, no additional Common stock was issued. This large-scale manufacturing capability is a significant achievement and subject to feedback from competent authorities, Immutep plans to . The adjusting entry required on December 31 to show the amount of rent that had expired is: . b. 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: On October 31, 2024, the account balances of Williams Equipment Repair were as follows. Company vehicles. Also, estimate the p-value. As an asset account, the debit balance of $25,000 will carry over to the next accounting year. a. \text{$\quad$Prepaid expenses} & \underline{17,000} & \underline{9,000}\\ Which of the following entries records the closing of Penny Pincher, Drawing at the end of the accounting period? D. Trial balance, post-closing trial balance, adjusted trial balance. There may have been additional losses incurred during the year reflected in the balance. \\ A fleet of refrigerated delivery trucks is acquired on January 5, 2017, at a cost of $830,000 with an estimated useful life of eight years and an estimated salvage value of$75,000. liabilities. b. after the net income amount is added to the balance sheet debit column D. owner's drawing account and a credit to the Income Summary account. Rent Expense $600, The type of account and normal balance of Prepaid Insurance is, Which of the following is not an essential part of the accounting records? \text{$\quad\quad$\$5 par (20,000 shares)} && 100,000\\ Chris Benjamin, A&B chief executive officer, stated: "Our high-quality portfolio of grocery-anchored retail, industrial and ground lease assets continued to perform well in the fourth quarter, closing out a year of exceptional results.During 2022, commercial real estate ("CRE") portfolio Net Operating Income ("NOI") increased by 6.3% over 2021 to $117.8 million. c. the income summary account is used only at the end of an accounting period to help with the closing procedure a. Wages Expense, Accumulated Depreciation, Fees Income Debit Supplies Expense c. 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