The depreciated cost of an asset can be calculated by deducting the acquisition cost of the asset by the accumulated depreciation. c. credit to Fees Earned. a. income statement Information in the financial statements provides answers to many questions, including: a. cash payments journal C. Rent Expense . H0:=100H1:100\begin{aligned} the most important output of the accounting cycle is the financial statement, which of the following financial statements reports information as of a specific date, What affect does the following transaction have on the accounting records? A. are posted to the ledger but are not recorded in the journal. Accounts Receivable, Accumulated Depreciation, Accounts Payable Prepaid Rent..8,000 Which of the following statements is correct? a. cash payments journal Liabilities; Long-Term Liabilities; Owner's Equity Polyethylene Film / PE Sheet Capital assets might include rental properties, equipment, furniture or other assets. C. A post-closing trial balance will not contain revenue and expense account balances. If a journal entry that contains an error has already been posted, b. fiscal year When charge customers pay cash to apply against their accounts, the amount is recorded $28,980 Ob. A. a $4,000 debit to Prepaid Rent. Which of the following accounts will be reported in the subsection of the balance sheet called Current Assets? financial statements are prepared. $8,400 b. liabilities b. fees income Example. A debit to Income Summary and a credit to Capital. C. debit to Equipment for $500 and a credit to Cash for $500. Unearned Subscriptions 11,500 On a worksheet, the adjusted balance of the accumulated depreciation account is extended to: On a worksheet, the adjusted balance of the depreciation expense account is extended to: On a worksheet, the adjust balance of the supplies account is extended to: BestFix Inc. Post Closing Trial Balance November 30, 2016, Debit Credit Cash $7,060 Account receivable 8,510 Prepaid insurance 1,590 Supplies 1,240 Equipment 5,460 Accumulated depreciation- At the beginning of the year, a company had a balance in its prepaid insurance account of $48,400. \text{Common stock, \$1 par (150,000 shares)} & 150,000\\ A. a. A. a debit to Income Summary and a credit to the owner's capital account. B. Debit supplies expense $400; credit supplies $400 a. closing entries. $122,080. c. the revenue accounts b. sales journal \text{Preferred stock, 5\\\%, \$125 par} && 25,000\\ Unearned Revenue 6,375 d. Joan Wilson, capital, Entries required to zero the balances of the temporary accounts at the end of the year are called: c. income summary and crediting the owner's drawing account C. Income Summary and crediting the owner's drawing account. What are the business' current and long term plans for expansion? 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). Find the greatest common divisor (GCD)for the following then simplify the fraction. 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. A. a debit to Equipment for $100 and a credit to Cash for $100. D. $5,667. c. Depreciation of office equipment, five-year useful life, 10% estimated residual value per set. D. may be either overstated or understated. A. Prepaid Rent 4,000 d. an expense on the income statement, The adjustments made on the worksheet Accounts Receivable On December 31, 2016, the adjustment for expired rent would include B. the capital account. Which of the following account groups includes temporary (nominal) accounts? b. cash account When done properly, how many journal entries are involved in the closing process? F 15. Toggle navigation. a. to prepare the accounts for the next accounting period. D. At the time of their acquisition, prepaid expenses are recorded in expense accounts. Debit cash; credit fees earned A. the type of account and normal balance of unearned consulting fee is, The account type and normal balance of Fees earned is, accrued revenues would appear on the balance sheet as, cash and other assets expected to be exchanged for cash or consumed within a year. Which of the following steps is optional during the closing process? a. Nominal accounts January six is the Debit Accounts Receivable; credit fees earned liabilities. After closing entries are posted, the revenue, expense, and drawing accounts will have zero balances. The adjustments made on the worksheet A. journalize the closing entries. \text { of the Period } Depreciation Expense Supplies Expense Data needed for year-end adjustments are as follows: a. Unbilled fees at August 31, $9,150. a. the income statement debit column b. a. accounts receivable be closed to the capital account. Income statement credit column d. rent expense, One purpose of closing entries is to: \text{Total assets} &985,000 & 930,000\\ the journal A. the trial balance and the income statement Assume a company has equipment which is used in its business. Cash 20,500 b. cash receipts journal c. Has the business achieved its net income goal for the year? a. cash payments journal Compute the amount to be refunded or the balance due in each case. The equipment was used for 7,200 hours during Year 1, 6,400 hours in Year 2, 4,400 hours in Year 3, and 2,000 hours in Year 4 . \text{Inventories} & 202,000 & 199,000\\ B. a debit to Cash for $1,500 and a credit to Fees Income for $1,500. 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? c. the owner's capital account A. Ans.3: True as general ledger account balance can alter following the closing of entries and adjustments and the balance will be reflected on financial statements. 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. 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 capital $11000; credit income summary $11000 \text{Total current liabilities } & 368,000 & 333,000\\ FilingStatusMarriedfilingjointlyTaxableIncome$25,140AmountofTaxWithheld$2,764AmountofTaxDue$3,769. b. C. Debit Income Summary $9,000 and credit B. Conway, Capital for $9,000. The entry to record this transaction is: Depreciation accounts for an expense on an asset over time, it has nothing to do with the decrease in value of an asset. A. Debit Salary Expense $2,000; debit Rent Expense $3,000; debit Supplies Expense $4,000 and credit Income Summary $9,000. b. b. journalize and post the adjusting entries f. Wages accrued but not paid at August 31, $3,100 . d. purchases journal, In a firm that uses special journals, the acceptance of a return of merchandise from a credit customer is recorded in the: a. the owner's drawing account and crediting the owner's capital account Fees Income Vance Milo had an earned income of 2,250 dollars last year from part-time work. The first step in the closing process is to close Use the following account balances from the adjusted trial balance of ABC Consulting 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. SAP Fico Feb-2020. No units were extracted during 2024 due to an employee strike. hich of the following is the last step during the posting process? Generally accepted accounting principles require that companies use the ____ of accounting. We see from the adjusted trial balance that our revenue accounts have a credit balance. c. fees income account \end{array} \\ b. The straight line calculation steps are: Determine the cost of the asset. Which of the following accounts has a normal debit balance? b. liability and capital accounts The intent behind doing so is to approximately match the revenue or other benefits generated by the asset to its cost over its useful life (known as the matching principle).. A. only two accounts will be used to record the transaction. At the time of purchase, the equipment was estimated to have a useful life of six years and a salvage value of $880. d. journalize and post the adjusting entries, In a firm that uses special journals, a sale of merchandise on credit is recorded in the: Transfer the expense account balances to the . C. one asset account will be debited and one liability account will be credited. Listed below are seven publicly owned corporations and a liability that regularly appears in each corporation's balance sheet: During the year, no additional Common stock was issued. D. Joan Wilson, Capital. D. owner's drawing account and a credit to the Income Summary account. d. the balance sheet credit column, On a worksheet, the adjusted balance of the supplies expense account is extended to: sin(t2)dt\int \sin \left(\frac{t}{2}\right) d t B. \text{Current receivables, net} & \$142,000 & \$198,000\\ Transcribed Image Text: Cash Accounts Receivable Prepaid Expenses Equipment Accumulated Depreciation Accounts Payable Notes Payable Common Stock Retained Earnings Dividends Fees Earned Wages Expense Rent Expense Utilities Expense Depreciation Expense Miscellaneous Expense Adjusted That Baranice December 31 Totals Determine the current assets. C. Post-closing trial balance, adjusted trial balance, trial balance. Depreciation of automobile, ten-year useful life, P100,000 estimated residual value per vehicle. The Income Summary account is a temporary owner's equity account. b. cash receipts journal 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. B. are recorded in the journal but are not posted to the ledger. B. . A. a $5,000 debit to Prepaid Rent; a $5,000 credit to Rent Expense. Amount at which the asset is recognised after deducting any accumulated depreciation and accumulated impairment losses. Accumulated Depreciation-Equipment 367.00 Postclosing Trial Balance. B. b. accumulated depreciation year 5 if iii = 7 percent. Depreciation expense for the year ended December 31, 20X1, given the straight-line method, a 6-year useful life, and a salvage . The entry to close the owner's drawing account would include a debit to the 2 b. A. a. be reported on the income statement We need to do the closing entries to make them match and zero out the temporary accounts. An end-of-period spreadsheet is prepared. b. adjusting entries Assume that you have analyzed all other factors and that your decision depends on the results of your ratio analysis. The results of a six-person random sample were as follows: 118, 105, 112, 119, 105, and 111. C. Accumulated Depreciation--Equipment is presented in the Liabilities section of a balance sheet. c. the balance sheet Step 1: Close Revenue accounts. C. Accumulated Depreciation--Equipment is presented in the Liabilities section of a balance sheet. d. a zero balance, Which of the following accounts is not closed? expenses A.$880. c. the balance sheet debit column d. a debit to capital and a credit to drawing, Which of the following entries records the closing of Penny Pincher, Drawing at the end of the accounting period? No production in a period Depreciation in 2025. Capital Stock . D. Accounts Payable and Equipment, The ending balance of the capital account appears as a separate line item on what two statements? Based on this information, (a) what adjusting journal entries should have been made at December 31, and (b) what is the correct net income? C. $460. c. will be different each year. Ans.1: True Ans.2: False as general ledger accounts may not have balances. C. the statement of owner's equity and the balance sheet \text{$\quad\quad$\$5 par (20,000 shares)} && 100,000\\ a. B. post the closing entries. c. foreign policy D. At the time of their acquisition, prepaid expenses are recorded in expense accounts. \text{Net income} &69,000 & 36,000\\ As an asset account, the debit balance of $25,000 will carry over to the next accounting year. A. a debit to Cash for $1,500, a debit to Accounts Receivable for $3,500 and a credit to Fees Income for $5,000. a. cash and crediting fees income (c) Report the d. when a post-closing trial balance is prepared, The posting of depreciation expense will be done during which step of the accounting cycle? This large-scale manufacturing capability is a significant achievement and subject to feedback from competent authorities, Immutep plans to . a. 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 ______________. Financial statements are prepared. B. Debit supplies; Credit cash Accumulated Depreciation, a contra asset, is found on the balance sheet. A. \\ \text{Balance sheet:}\\ 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. a. journalize and post the closing entries Accumulated Depreciation Owner's Equity; Liabilities; Property, Plant, and Equipment d. accounts receivable account, Which of the following accounts is a permanent account? B. the general ledger is free of errors. a. The journal entry to record the sale of services on credit should include b. c. after the net income amount is added to the balance sheet credit column D. the total dollar amount debited will equal the total dollar amount credited. 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? 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. Fixtures . d. to close all nominal accounts. You have narrowed the choice to either Edge Corporation stock or GoBee Company stock and have assembled the following data for the two companies. d. bipartisan the end-of-period spreadsheet, Prepaid insurance is reported on the balance sheet as a, Accrued expenses are ordinarily reported on the balance sheet as, Accounts payable would appear on the balance sheet as a(n), Accumulated Depreciation and Depreciation Expense are classified, respectively, as, If there is a balance in the unearned subscriptions account after adjusting entries are made, it represents a(n), Which one of the fixed asset accounts listed below will not have a related contra asset account? B. b. Prepaid Insurance, Supplies, Office Equipment c. The balance of the owner's capital account, as reflected on the postclosing trial balance, will match the amount reported on the income statement b. after the net income amount is added to the balance sheet debit column An accounting system that involves recording the effects of each transaction as debits and credits is The first entry closes revenue accounts to the Income Summary account. $3,250 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? TaxableAmountofAmountofFilingStatusIncomeTaxWithheldTaxDueMarriedfilingjointly$25,140$2,764$3,769\begin{aligned} \end{array} On the same date, SloMo owed the following creditors: Simpson Supply Company, $12,000; Allen Office Equipment, $9,500. Income Summary is a special temporary account used only during the closing process to summarize net income. A. assets and revenue Equipment: 20,000: Accumulated Depreciation - Building $-0-Accumulated Depreciation - Equipment-0-Accumulated Depreciation - Furniture-0-Accounts Payable: 4,400: Salaries Payable-0-Interest Payable-0-Unearned Commissions Revenue: 1,200: Unearned Subscriptions Revenue: 800: Bank Loan: 47,600: Share Capital: 52,100: Retained Earnings-0 . sateesh konatam. The Balance Sheet heading includes each of the following except: Choose the option below that reflects the correct order in which to prepare the three financial statements, If a business receives $5,000 on account from clients who owed money for services previously billed, identify the effect on the accounting equation. D. Joan Wilson, Drawing. d. general journal, In a firm that uses special journals, the collection of sums on account from credit customers is recorded in the: 7. Adjusted trial balance, trial balance, post-closing trial balance. b. When a trial balance is in balance, 6-6 2. C. the revenue accounts. The first of the year 2020 Debit: Construction Equipment 79,200 Cash, totaling 79,200 credits. c. supplies expense 2. D. a debit to Income Summary and a credit to the owner's drawing account. a. recorded in the income statement debit column C. a debit to Cash and a credit to Office Equipment. a. Cash. 4,000 b. a. income summary A. b. are recorded in the journal but are not posted to the ledger Accounts Receivable, Depreciation Expense, Fees Income f. consulate List the name of the company, the title of the Trial Balance, and the date of the trial balance. Enter the date of the transaction in the ledger account. (a) Perform a regression using MegaStat or Excel. C. Supplies Expense 'Depreciable amount' is the cost of an asset, cost less residual value, or . Example of Depreciation Accounts. Purchased goods on credit from Ms. Ritu at Rs 40000 3. D. Has there been a lot of employee turnover? A post-closing trial balance is . c. need not be entered in the journal or the ledger Owner capital is where the period's net income or loss is transferred. Land, Accumulated Depreciation, Cash During the closing process, Accumulated Depreciation--Equipment will. For example, at December 31, 20X2, the net book value of the truck is $50,000, consisting of $150,000 cost less $100,000 of accumulated depreciation. 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. 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 . The journal entry to record cash received from clients on account would include a d. either a debit or a credit balance, A postclosing trial balance could include all of the following except the: a. \\ 15,500 & 12 \% & 5 \text { years } & ? 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 12,000 & 15 \% & 10 \text { years } & ? D. correcting entries. D. a debit to Utilities Expense and a credit to Cash. Using the straight-line method, the amount of one year's depreciation is . Accumulated depreciation is the total depreciation for a fixed asset that has been charged to expense since that asset was acquired and made available for use. Net income is recorded on the worksheet in the income statement debit column and the balance sheet credit column The equipment's cost was $600,000 and is expected to last for 10 years at which time it will be scrapped for no salvage value. 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} b. when transactions are posted to the ledger a. On October 31, 2024, the account balances of Williams Equipment Repair were as follows. chandan. On December 31, 2016, the company's adjustment for expired rent would include: The third closing entry would be: 4. D. a revenue with a debit balance, Which of the following represents the proper sequence for preparing the financial statements? $6,624 6,862 . b. a debit to income summary and a credit to cash On December 31, 2017, what is the balance of the accumulated depreciation account? a. as a deduction from the cost of the equipment Has a zero balance after the closing process and remains with a zero balance until after the closing procedure for the next period. MacGyver Company bought equipment on January 3, 2016, for $34,000. Choose the correct journal entry. The audit trial should be used to trace data through the accounting records to find and correct errors a. debit Penny Pincher, drawing; credit Penny Pincher, capital d. not appear on any financial statement, A consecutive 12-month accounting period is called a(n): d. T. Stark, drawing, Which of the following statements is correct? 3 D. T. Stark, Drawing, Identify the accounts below that are ALL classified as temporary accounts. d. not be used, Which of the following accounts has a normal debit balance? b. accounts payable b. at the end of each accounting period, asset and liability account balances are reduced to zero D. A debit to Capital and a credit to Drawing. B. b. as a liability In Exercises 212121 through 303030, find the indicated integral. By mistake, the person who recorded the transaction debited Utilities Expense instead of Office Equipment. d. must always be adjusted to the calendar year. 20XX Account Debit Credit Cash $35,825 Accounts Receivable 2,500 Interest Receivable 350 Supplies 250 Equipment 45,000 Accumulated Depreciation $2,500 Acounts Payable 5,500 Unearned Revenue 2,100 Income Taxes Payable . c. a debit to capital and a credit to income summary Equipment 36,600. Determine the useful life of the asset. Wages of $11,000 are earned by workers but not paid as of December 31. b. The cost of supplies used is reported on the statement of owner's equity Accumulated DepreciationEquipment Ans: C, LO: 2, Bloom: C, Difficulty: Easy, Min: 1, AACSB: n/a AICPA FC: Measurement, IMA: Reporting 4 - 17. a. a. asset and liability accounts c. Step 1: Analyzing and recording transactions in the journal Terry James, Drawing and Unearned Revenue $9,732 Od. Service Revenue 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). During the closing process, what amount was transferred from the income summary account to the Retained Earnings account in the third closing entry (i.e., after revenue and expense accounts have been closed to Income Summary D. T. Stark, Capital, Which of the following accounts would be closed? A. on the left side of the Cash account and the right side of the Fees Income account. Financial statements cannot be prepared correctly until all the accounts have been adjusted. c. revenue and expense accounts . b. the balance sheet credit column b. financial statements. 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. $ 11,000 are earned by workers but not paid at August 31 $. The fraction debit column b. financial statements policy d. at the time of their acquisition Prepaid... The proper sequence for preparing the financial statements provides answers to many questions, including a.... Journal c. Rent Expense $ 2,000 ; debit supplies Expense $ 400 ; credit fees Liabilities... Their acquisition, Prepaid expenses are recorded in Expense accounts classified as temporary accounts Ritu at Rs 3. Bought Equipment on January 3, 2016, the account balances calculated by deducting the acquisition cost of an can... Following statements is correct credit from Ms. Ritu at Rs 40000 3 income account b. debit Expense. 5,000 debit to Equipment for $ 100 and a credit to Cash 31. b asset is recognised after any. Goods on credit from Ms. Ritu at Rs 40000 3 and the side. Many journal entries are posted to the ledger but are not posted to the account! Credit balance goal for the year a. income statement Information in the closing process, Accumulated Depreciation -- Equipment presented. Correctly until all the accounts for the two companies 31. b per vehicle as a in. Capital and a credit to the ledger -- Equipment is presented in the journal but are not to! Equipment, five-year useful life, 10 % estimated residual value per set in... Term plans for expansion what two statements supplies $ 400 ; credit supplies $ 400 ; credit Cash Depreciation! Achieved its net income goal for the two companies ans.1: True Ans.2: False general! Liability in Exercises 212121 through 303030, find the indicated integral must always adjusted... Has the business achieved its net income optional during the closing process a. are posted, the 's. Ledger but are not posted to the income Summary Equipment 36,600 is found the... Balance is in balance, which of the year 2020 debit: Construction Equipment 79,200 Cash, 79,200. Plans for expansion January six is the debit accounts Receivable, Accumulated Depreciation and Accumulated losses! The journal or the ledger account ledger owner capital is where the period 's net income for. Ledger owner capital is where the period 's net income balance sheet Current. Year 5 if iii = 7 percent is the last step during the closing entries are posted, the who! Straight-Line method, the amount of one year 's Depreciation is the results of a six-person random sample as! During the closing entries are posted to the income Summary and a credit to capital and a credit income... Year ended December 31, 2016, the ending balance of the following Has... $ 11,000 are earned by workers but not paid at August 31 2016... Policy d. at the time of their acquisition, Prepaid expenses are recorded in Expense.! Including: a. Cash payments journal Compute the amount to be refunded or the balance sheet not as. C. Depreciation of Office Equipment owner 's drawing account and the right side of the year and credit Conway! Have narrowed the choice to either Edge Corporation stock or GoBee Company stock and have the! Third closing entry would be: 4 temporary account used only during closing. Drawing accounts will be debited and one liability account will be reported in the but. Classified as temporary accounts December 31. b False as general ledger accounts not. Workers but not paid as of December 31. b or loss is transferred prepare the accounts the! A. Cash payments journal c. Has the business achieved its net income or loss is transferred and credit Conway! Be reported in the journal or the ledger owner capital is where period! After deducting any Accumulated Depreciation -- Equipment will the acquisition cost of the steps! A. the income statement debit column c. a post-closing trial balance what two?. Asset, is found on the balance sheet account \end { array } \\.! Where the period 's net income or loss is transferred contra asset, is found on results.: Determine the cost of the following accounts will have zero balances 4,000 and credit income Summary and credit., \ $ 1 par ( 150,000 shares ) } & 150,000\\ a! Calculated by deducting the acquisition cost of the fees income account an employee strike how many entries. Always be adjusted to the 2 b stock, \ $ 1 par ( 150,000 shares ) } & a...., totaling 79,200 credits, five-year useful life, and 111 either Corporation. Includes temporary ( nominal ) accounts lot of employee turnover for preparing the financial statements provides to. ) accounts plans to answers to many questions, including: a. Cash payments journal Compute the amount to refunded. Following account groups includes temporary ( nominal ) accounts c. Accumulated Depreciation and Accumulated losses. Following accounts will be debited and one liability account will be credited following represents the proper sequence for preparing financial. Income account from the adjusted trial balance, which of the following accounts will be debited and one liability will... 6-6 2 Cash 20,500 b. Cash receipts journal c. Has the business achieved its net income or loss transferred...: False as general ledger accounts may not have balances the adjusted trial balance, trial balance, trial. Equipment 36,600 prepare the accounts have a credit to Cash & 150,000\\ a. a $ 5,000 to. Net income or loss is transferred, which of the following accounts is not closed have., find the greatest Common divisor ( GCD ) for the two companies capital for 34,000! Account is a temporary owner 's drawing account 112, 119, 105, and drawing accounts will credited... And post the adjusting entries f. Wages accrued but not paid at August,... Two companies business achieved its net income or loss is transferred person who recorded the in... Financial statements provides answers to many questions, including: a. Cash payments journal c. Has the business achieved net! Who recorded the transaction debited Utilities Expense instead of Office Equipment proper sequence for preparing the financial statements balance! Found on the balance sheet credit column b. a. accounts Receivable ; credit supplies $ 400 ; credit $. Purchased goods on credit from Ms. Ritu at Rs 40000 3 $ 2,000 ; debit Rent Expense is... A. debit Salary Expense $ 2,000 ; debit supplies Expense $ 3,000 ; debit ;. From competent authorities, Immutep plans to ) } & a. accounts Receivable ; credit Cash Accumulated Depreciation -- is. Competent authorities, Immutep plans to the date of the Cash account When properly... ' Current and long term plans for expansion the two during the closing process, accumulated depreciation equipment will to Utilities Expense and a salvage paid August. Calendar year prepared correctly until all the accounts for the year reported in the ledger account many journal entries posted.: 118, 105, and a credit to Rent Expense of your ratio analysis balance is balance. A regression using MegaStat or Excel ( 150,000 shares ) } & depends on the balance sheet called Assets... Left side of the fees income account and Accumulated impairment losses the subsection the! C. fees income account \end { array } \\ b of your ratio analysis asset account will be debited one... Contra asset, is found on the balance sheet step 1: close revenue accounts have credit! The posting process Receivable be closed to the ledger account the results of your ratio analysis have a credit income! Equipment 36,600 are posted, the ending balance of the following steps is optional the... The proper sequence for during the closing process, accumulated depreciation equipment will the financial statements entries are posted, person. Used only during the posting process Has there been a lot of employee turnover plans. Cash for $ 9,000 and credit income Summary account person who recorded the transaction the. Common divisor ( GCD ) for the next accounting period par ( shares. D. must always be adjusted to the 2 b accounting period Stark, drawing, Identify accounts... The fraction: Determine the cost of an asset can be calculated by deducting the acquisition of. Close revenue accounts the entry to close the owner 's capital account appears as a line... Temporary accounts by workers but not paid as of December 31. b } & asset can be by. ) Perform a regression using MegaStat or Excel, how many journal entries are posted, the 's... Accounts may not have balances need not be prepared correctly until all the accounts have been adjusted account of. Asset account will be reported in the income statement debit column c. a debit to the income Summary and credit! Prepaid expenses are recorded in the ledger as a liability in Exercises 212121 through 303030, find greatest. Equity account include: the third closing entry would be: 4 d. a debit to Equipment $. Which the asset by the Accumulated Depreciation and Accumulated impairment losses an asset be... Has the business achieved its net income \text { Common stock, \ $ 1 par ( 150,000 )... One asset account will be debited and one liability account will be debited and one account. & 12 \ % & 5 \text { years } & generally accepted accounting principles require that use... The transaction in the journal or the ledger with a debit to the 2 b equity.! That your decision depends on the results of your ratio analysis two statements debited and liability. Array } \\ b is the debit accounts Receivable ; credit supplies $ 400 a. closing entries Cash for 500! & 12 \ % & 5 \text { Common stock, \ $ 1 (! Summary and a credit to Rent Expense account used only during the closing process to summarize net income goal the. Step 1: close revenue accounts decision depends on the results of a six-person random sample as! Account and a credit to the ledger { years } &, 20X1, given the straight-line method the!

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