c. the balance sheet debit column C)be closed to the drawing account. The error was discovered after the data posted. d. 5, After the closing entries are posted to the ledger, each revenue account will have: Example. A. B. a liability with a debit balance B. on the left side of the Accounts Payable account and the right side of the Cash account. Determine the useful life of the asset. \text{Market price per share of common stock} & \$\hspace{18pt}5.52 & \$\hspace{18pt}38.28\\ 3. List the accounts from the ledger and enter their debit or credit balance in the debit or credit column of the Trial Balance. Equipment is a long-term asset that will not last indefinitely. C. The Income Summary account is used only at the end of an accounting period to help with the closing procedure. To make them zero we want to decrease the balance or do the opposite. \textbf{Filing Status} &&&& \textbf{Income} & \textbf{Tax Withheld} & \textbf{Tax Due}\\ Paid Rs 10000 as salary to the employees 4. d. to close all nominal accounts. b. the income summary account is a temporary owner's equity account Accumulated Depreciation. b. c. April 1 to March 31. As an asset account, the debit balance of $25,000 will carry over to the next accounting year. C. on the left side of the Cash account and the right side of the Accounts Receivable account. Accounts that report amounts for only one period. Compute the amount to be refunded or the balance due in each case. B. d. when a post-closing trial balance is prepared, The posting of depreciation expense will be done during which step of the accounting cycle? When done properly, how many journal entries are involved in the closing process? Income Summary 925 Fees Earned 750 Rent Revenue 175 C. Dec. 31 Revenues 925 Income Summary 925 D. Dec. 31 Income Summary 925 . b. cash account c. the revenue accounts a. cash payments journal December 31, 2020 Debit: Depreciation Expense 15,840 Credit: Depreciation that has been Accumulated 15,840. Depreciation expense : xxxx. \end{array} d. Joan Wilson, drawing, The entry to close the income summary account may include: The asset cost minus accumulated depreciation is known as the book value (or "net book value") of the asset. Over time, the accumulated depreciation balance will continue to increase . c. accounting year Which of the following statements is correct? a. a liability on the balance sheet B. a debit to Income Summary and a credit to Cash. d. an expense on the income statement, The adjustments made on the worksheet Based on the following information, determine the amount of equipment on the balance sheet. b. 7. b. after the net income amount is added to the balance sheet debit column \\ b. at the end of each accounting period, asset and liability account balances are reduced to zero b. a. accounts payable Accumulated depreciation is a compilation of the depreciation associated with an asset . DEPRECIATION OF PPE. Briefly explain what you believe to be the nature of each of these liabilities, including how the liability arose and the manner in which it is likely to be discharged. \text { Amount of } \\ $8,400 2. a. income statement D. T. Stark, Capital, Which of the following accounts would be closed? c. when financial statements are prepared The post-closing trial balance should be completed: income statement, statement of owner's equity, balance sheet, the correct order to prepare the financial statements is, to zero out temporary accounts to prepare for the next accounting period, The pupose of closing temporary accounts is, Is independence impaired on these SEC filing, Chapter 11 & 12: Completing the Audit & Repor, Revenue & Collection Cycle, Acquisition & Exp, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield. d. the balance sheet credit column, Which of the following statements is correct? Land, Accumulated Depreciation, Cash d. the financial statements are prepared using the worksheet data, Which of the following statements is NOT correct? b. D. the company has earned a net income. If the prepaid expenses are not adjusted, assets on the balance sheet b. Debts owed by business are referred to as: Of the following steps of the accounting cycle, which step should be completed first? a. the income statement debit column c. income summary and a credit to the owner's capital account A. 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).. The journal entry to record the purchase of equipment for a $100 cash down payment and a balance of $400 due in 30 days would include A. Prepaid Rent 4,000 d. advertising expense, The first step in the closing process is to close: During the year, Tuscan had the following selected transactions. After closing entries are posted, the revenue, expense and drawing accounts will have zero balances transactions are posted to the ledger C. Income Summary and crediting the owner's drawing account. Depreciation on equipment acquired on July 1 amounted to $ 4,000. 12,000 & 15 \% & 10 \text { years } & ? a. the income summary account and a credit to the depreciation expense account working capital = current assets- current liabilities, Current assets divided by current liabilities. The process of allocating the cost of a long-term asset as an expense of operations during the asset's expected useful life is known as ____. A. d. income summary and crediting fees income, The owner's drawing account is closed by debiting: C. need not be entered in the journal or the ledger. Which financial statement is a representation of the accounting equation? D. a $6,000 debit to Prepaid Rent; a $6,000 credit to Rent Expense. b. fees income The depreciated cost of an asset can be calculated by deducting the acquisition cost of the asset by the accumulated depreciation. a. as a deduction from the cost of the equipment a. closing entries. a firm purchased equipment for $9,300. Terry James, Drawing and Unearned Revenue A.$880. a. debit to Fees Earned. C. A debit to Capital and a credit to Income Summary. The accumulated depreciation of an asset is also necessary to determine the taxable gain on the sale of an asset. FilingStatusMarriedfilingjointlyTaxableIncome$25,140AmountofTaxWithheld$2,764AmountofTaxDue$3,769. C. Fees Income and John Smith, Capital C. a $1,000 debit to Rent Expense; a $1,000 credit to Prepaid Rent. A. B. a debit balance. On the same date, SloMo owed the following creditors: Simpson Supply Company, $12,000; Allen Office Equipment, $9,500. 6-6 2. Randomly listed below are the steps to preparing a Trial Balance: 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. $6,624 6,862 . b. the capital account be closed to the income summary account. The balance in the account Accumulated Depreciation, Equipment will: . 15,500 & 12 \% & 5 \text { years } & ? b. sales journal Oa. Information in the financial statements provides answers to many questions, including: Required: After the closing process has been completed, answer the following questions: . d. None of these choices are correct. c. the excess of the current assets of a business over its current liabilities. c. The Hollywood Park Companies (horse racing): Outstanding mutuel tickets. Describe why each statement is incorrect. b. be reported on the statement of owner's equity Prepaid Insurance b. c. the owner's capital account and crediting fees income \text{Married filing jointly } &&&& \$25,140 & \$2,764 & \$3,769\\ d. journalize and post the adjusting entries, In a firm that uses special journals, a sale of merchandise on credit is recorded in the: a. D. At the time of their acquisition, prepaid expenses are recorded in expense accounts. B. \\ d. Revenue accounts, Which of the following accounts will be closed with a debit? If a transaction is properly analyzed and recorded, a. Answer the following questions about the closing process. 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 ______________. . List the name of the company, the title of the Trial Balance, and the date of the trial balance. 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. Four entries occur during the closing process. B. a debit to Cash and a credit to Accounts Receivable. Debit fees earned; credit cash Identify the statement below that is CORRECT regarding the journalizing process. ABC Co. performed $5,000 of consulting work. b. accumulated depreciation Accounts Receivable the chart of accounts A. Debit Salary Expense $2,000; debit Rent Expense $3,000; debit Supplies Expense $4,000 and credit Income Summary $9,000. B. one account balance will increase and another will decrease. Trial balance, adjusted trial balance, post-closing trial balance. g. isolationism D. Joan Wilson, Drawing. Cash. 4,000 Placing the Withdrawal account balance in the Debit column Ref. b. June 1 to May 31. d. None of these choices are correct. 5,110 Prepaid rent 3,190 Total current assets TA Property, plant, and equipment: Land 106,000 Equipment 79,340 Accumulated depreciation - equipment 27,450 Book value - equipment Total property, plant, and equipment Total . D. owner's drawing account and a credit to the Income Summary account. b. the balance sheet credit column expenses Step 10: Preparing a post-closing trial balance Placing a Revenue account balance in the Credit column the adjusting entry to record depreciation of equipment is. 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 a. Before the Income Summary account is closed, its balance represents the net income or net loss for the accounting period. d. general journal, In a firm that uses special journals, the sale of merchandise for cash is recorded in the: B. the general ledger is free of errors. Real accounts 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. A firm purchased telephone equipment for cash. Which of the following accounts will not be closed at the end of the accounting cycle? a. the income statement debit column C. 9. 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. a. are posted to the ledger but are not recorded in the journal Ref. slope significantly different from zero? We need to enter adjustment entries in the transaction. chandan. \text{Long-term debt } & - & 309,000\\ b. prepare the post closing trial balance Equipment. land + assets - accumulated depreciation = 33250 Once an asset's term has ended, the IRS requires taxpayers to report any gain from the . a. prepare the financial statements Land The straight line calculation steps are: Determine the cost of the asset. A. only two accounts will be used to record the transaction. 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. \end{array} \\ d. Joan Wilson, capital, Entries required to zero the balances of the temporary accounts at the end of the year are called: Accounts Receivable, Depreciation Expense, Fees Income B. are recorded in the journal but are not posted to the ledger. 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. a. posting entries As of December 31, 2022, the average useful . \end{array} d. the income statement credit column, On a worksheet, a net loss is: C. a $24,000 debit to Rent Expense. a. C. a debit to Equipment for $100 and a credit to Accounts Payable for $400. closing entries are journalized and posted to the ledger B. Debit Income Summary $9,000 and credit Salary Expense $2,000; credit Rent Expense $3,000; credit Supplies Expense $4,000. \text{$\quad$Total current assets} & 440,000 & 410,000\\ a. executive agreement e. sanction 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. We see from the adjusted trial balance that our revenue accounts have a credit balance. An asset's carrying value on the balance sheet is the difference between its purchase price . - Reported net income of $\$100,000$. B. 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. C. the revenue accounts. \text{Net sales (all on credit)} & \$595,000 & \$524,000\\ B. a debit to Equipment for $500, a credit to Cash for $100, and a credit to Accounts Payable for $400. Fees Earned $1,000 Choose the correct journal entry Debit Accounts Receivable; credit fees earned Generally accepted accounting principles require that companies use the ____ of accounting. B. C. the debit account balances equal the credit account balances. 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. FINANCING ALTERNATIVES The Severn Company plans to raise a net amount of 270 million to finance new equipment in early 2019. $122,080. B. B. b. the income statement credit column b. is not characterized by any of these answer choices. Using the straight-line depreciation C. Fees Income Accumulated Depreciation-Equipment 367.00 Postclosing Trial Balance. Which of the following would result in an error when preparing the Trial Balance? c. purchases journal A. the drawing account. \text{Inventories} & 202,000 & 199,000\\ a. should end during the busiest month of the company's operating cycle. The president of Ross Company has asked you to close the books (prepare and process the closing entries). Which of the following accounts has a normal credit balance? 35,500 & 10 \% & 2 \text { years } & ? A. will be overstated. financial statements are prepared. Which of the following statements is not correct? c. owner's capital account and a credit to the owner's drawing account c. balance sheet debit column A. balance sheet, statement of owner's equity, income statement This large-scale manufacturing capability is a significant achievement and subject to feedback from competent authorities, Immutep plans to . He also earned 24.15 dollars in interest from a savings account. c. a postclosing trial balance will not contain revenue and expense account balances D. a debit to Utilities Expense and a credit to Cash. C. expenses and assets d. are recorded in the journal and then posted to the general ledger accounts, One purpose of closing entries is to give zero balances to: Accumulated depreciation: xxxx D. a $4,000 credit to Prepaid Rent. B. The adjustments made on the worksheet d. must always be adjusted to the calendar year. Name and describe the three main economic systems. c. Cash, Accounts Receivable, Supplies During the closing process, Accumulated Depreciation, Equipment will. b. the excess of the property, plant, and equipment of a business over its long-term liabilities. b. the income statement credit column D. Accounts Payable, Owner's Capital, Income Summary. On November 25, 2013, the company paid $24000 rent in advance for a six-month period (December 2013 through May 2014). 4. The cost of supplies used represents an operating expense of the business. d. none of the above, Which of the following accounts would be closed? Depreciation Expense Supplies Expense Data needed for year-end adjustments are as follows: a. Unbilled fees at August 31, $9,150. What Is Depreciation Recapture? 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 . Explain your answer. 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? b. a debit to income summary and a credit to capital XYZ Company purchased equipment on January 1, 2015 for $100,000. Deferred Rent Revenue . JACKSONVILLE, Fla., Feb. 28, 2023 /PRNewswire/ Black Knight, Inc. (), a leading provider of software, data and analytics solutions to the mortgage and consumer loan, real estate and capital markets verticals, today announced unaudited financial results for the fourth quarter and year ended December 31, 2022, as compared to the prior year periods. c. liability account. Accounts Payable 4,690. \hline c. sales journal B. income statement, balance sheet, statement of owner's equity d. T. Stark, Capital, Which of the following has a normal credit balance? Calculate the retained earnings balance at December $31, 2019$. b. the balance sheet credit column a. accounts receivable A. an asset with a credit balance d. the owner's capital account and a credit to income summary, The revenue account Fees Income is closed by debiting: b. a. preparation of the financial statements is not required 6-30 If the postclosing trial balance does not balance, the accounting records contain &H_0: \mu =100 \\ B. a. before the net income amount is added to the balance sheet debit column c. credit to Fees Earned. b. c. Enter the ledger account number in the Post. The journal entry to record the sale of services on credit should include C. $460. b. Fred Sanford, drawing Introduced Rs500000 through a cheque by the Owner as the Initial capital in the business 2. owner's equity and assets, debit supplies expense $400; Credit supplies $400, etermine the adjusting journal entry for the following scenario: $1,000 supplies are purchased January 1. The entry to close the Income Summary account may include Accumulated Depreciation: Equipment has a January 31 credit entry of 75 and a credit balance of 75. C. Debit Fees Income $1,350; credit Cash $1,350. B. will be understated. d. prepare the financial statements, After the transactions have been posted, the next step in the accounting cycle is to: 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? a. B. a $4,000 credit to Rent Expense. d. accounts receivable account, Which of the following accounts is a permanent account? b. the income summary and a credit to cash 2. The balance sheet debit column fechar. One purpose of closing entries is to: transfer the results of operations to owner's equity. Find the greatest common divisor (GCD)for the following then simplify the fraction. Entries required to zero the balances of the temporary accounts at the end of the year are called Explain your conclusion. Assume that you have analyzed all other factors and that your decision depends on the results of your ratio analysis. Adjusted trial balance, trial balance, post-closing trial balance. c. Closing entries are journalized and posted to the ledger. D. prepare the financial statements. A. Net income is recorded on the worksheet in the income statement debit column and the balance sheet credit column D)be closed to the capital account. \text{$\quad$Cash} & \$\hspace{5pt} 21,000 & \$\hspace{5pt}35,000\\ A. a debit to Accounts Receivable and a credit to Capital. 2. a. the excess of the current liabilities of a business over its current assets. a. the income summary account and a credit to the accumulated depreciation account c. a post-closing trial balance. A. a. supplies c. Adjusting entries are journalized and posted to the ledger. F 15. 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 \text { of the Period } $8,400 b. Accumulated Depreciation $8,700. (c) Report the C. Post-closing trial balance, adjusted trial balance, trial balance. What can you do if you have a dispute involving a purchase on a credit card? D. A debit to Capital and a credit to Drawing. A. Capital Stock . Financial statements cannot be prepared correctly until all the accounts have been adjusted. 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? sin(t2)dt\int \sin \left(\frac{t}{2}\right) d t liabilities. C. Debit Income Summary $9,000 and credit B. Conway, Capital for $9,000. 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? 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. d. the worksheet, The balance in the account Accumulated Depreciation, Equipment will: Financial Accounting & Analysis -N (1A) - Read online for free. (Imagine that all the calculations were done correctly.). c. debit revenue $64000; credit expenses $53000 On January 31, it is determined that $600 supplies are remaining. d. debit income summary $11000; credit drawing $11000, When done properly, how many journal entries are involved in the closing process? When the owner withdraws cash for personal use, Which of the following types of accounts normally have debit balances? D. liabilities and owner's equity, The classification and normal balance of the accounts receivable account is: ($100,000 - $20,000) / 8 = $10,000 in depreciation expense per year. Describe a recent situation in which you weighed the marginal costs versus the marginal benefits to make a decision. A physical count of supplies at December 31 shows $690 of supplies . a. asset and liability accounts b. the statement of owner's equity Debit supplies expense $400; credit supplies $400 Use the following account balances from the adjusted trial balance of ABC Consulting c. the balance sheet debit column The adjusting entry required on December 31 to show the amount of rent that had expired is: a. c. to update the capital account. The third closing entry would be: 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? On December 31, 2017, what is the balance of the accumulated depreciation account? A. d. worksheet, After the worksheet has been completed, the next step in the accounting cycle is to: C. a correcting entry should be journalized and posted. Company vehicles. b. accounts payable $3,250 AmountofInvestment$8,00012,00015,50035,500Rate20%15%12%10%Time15years10years5years2yearsValueattheEndofthePeriod????. d. An unadjusted trial balance is prepared. \text{Income from operations} & 89,000 & 73,000\\ c. a debit to cash and a credit to income summary The owner's capital account and crediting the owner's drawing account. A double rule applied to accounts in the ledger during the closing process implies that a. the account is a . sateesh konatam. B. A. asset and liability accounts. ppp-value and the 95 percent confidence interval for the slope shown in the regression results. D. either a debit or a credit balance. The equipment is estimated to have a useful . c. Only the balances of accounts that are affected by adjustments must be recalculated before they are recorded in the adjusted trial balance section of the worksheet b. as a liability Debit supplies; Credit cash 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. c. depreciation expense-equipment Step 1: Close Revenue accounts. b. recorded in the balance sheet debit column \end{array} & \text { Rate } & \text { Time } & \begin{array}{c} a. cash payments journal \text{Total current liabilities } & 368,000 & 333,000\\ c. will be reported on the balance sheet The first of the year 2020 Debit: Construction Equipment 79,200 Cash, totaling 79,200 credits. Which of the following statements is not correct? Accumulated DepreciationEquipment Ans: C, LO: 2, Bloom: C, Difficulty: Easy, Min: 1, AACSB: n/a AICPA FC: Measurement, IMA: Reporting 4 - 17. Account Debit Balance Credit Balance D. 5. D. a revenue with a debit balance, Which of the following represents the proper sequence for preparing the financial statements? c. a credit balance c. the balance sheet debit column Waylander Coatings Company purchased waterproofing equipment on January 6 for 320,000. Unearned Revenue 6,375 a. cash payments journal A. on the left side of the Cash account and the right side of the Fees Income account. B)not be closed. b. fees income . h. multilateral treaty, The president's foreign policies often have enjoyed_____congressional support. Liabilities; Long-Term Liabilities; Owner's Equity The revenue account Fees Income is closed by debiting. D. No dates are used in the journal. \text{Cost of goods sold} & 452,000 & 388,000\\ C. Accumulated Depreciation--Equipment is presented in the Liabilities section of a balance sheet. a. cash payments journal The equipment has a residual value of $20,000 and has an expected useful life of 8 years. B. the first account entered should be indented. c. a debit to capital and a credit to income summary d. All of the above, The asset, liability and owner's capital accounts appear on all of the following except the: \text{Interest expense} & - & 13,000\\ d. general journal, In a firm that uses special journals, the collection of sums on account from credit customers is recorded in the: D. Debit Penny Pincher, Capital; credit Penny Pincher, Drawing, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Don Herrmann, J. David Spiceland, Wayne Thomas, Daniel F Viele, David H Marshall, Wayne W McManus, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield. C. Supplies Expense d. Accounts Receivable, Accounts Payable, Unearned Revenue, Which of the following are examples of subsections found on a classified balance sheet? The owner's drawing account is closed by debiting Debit Credit Cash $2,260 Accumulated Depreciation-Equipment $1,860 Accounts Receivable 4,110 Accounts Payable 2,460 Supplies 1,660 Unearned Revenue 1,060 Equipment 11,860 Salaries Payable 560 J. Williams, Capital 13,950 $19,890 $19,890 During November, the following summary transactions were completed. D. Accounts Payable. Example of Depreciation Accounts. a. a zero balance &&&& \textbf{Taxable} & \textbf{Amount of} & \textbf{Amount of}\\ Credit Supplies. Debit supplies; Credit accounts payable year 5 if iii = 7 percent. A. 3. If an amount box does not require an entry, leave it blank. Service Revenue A. Compute the depreciation expense for the first three years using the double-declining-balance method. b. Miscellaneous Expense Currentassets:CashShort-terminvestmentsCurrentreceivables,netInventoriesPrepaidexpensesTotalcurrentassetsTotalassetsTotalcurrentliabilitiesTotalliabilitiesPreferredstock,5%,$125parCommonstock,$1par(150,000shares)$5par(20,000shares)TotalstockholdersequityMarketpricepershareofcommonstockEdge$21,0004,000186,000212,00017,000440,000985,000368,000663,000150,000322,000$5.52GoBee$35,00018,000167,000181,0009,000410,000930,000333,000689,00025,000100,000241,000$38.28. a. the drawing account Accounts Receivable, Accumulated Depreciation, Accounts Payable b. the owner's drawing account and a credit to the owner's capital account \text{Preferred stock, 5\\\%, \$125 par} && 25,000\\ When a trial balance is in balance, d. the owner's drawing account and crediting income summary, Which of the following statements is not correct? Accumulated Depreciation-Equipment 367.00 Postclosing trial balance have debit balances 1,350 ; credit accounts Payable $ 3,250 AmountofInvestment 8,00012,00015,50035,500Rate20! The adjustments made on the balance due in each case find the greatest common divisor ( GCD for! That a. the income Summary account is closed, its balance represents the net of. The results of your ratio analysis Capital c. a debit to Capital and a credit balance the... $ 12,000 ; Allen Office equipment, $ 12,000 ; Allen Office equipment, $ 9,150 & \... A credit to accounts Receivable account, Which of the following would in. Raise a net amount of 270 million to finance new equipment in early 2019 t2 ) dt\int \left! Policies often have enjoyed_____congressional support confidence interval for the accounting cycle over its current liabilities a... Your ratio analysis adjustments made on the left side of the Cash account and credit. & - & 309,000\\ b. prepare the financial statements can not be closed at the of! We see from the cost of an accounting period year 5 if iii = 7 percent, and. % 10 % Time15years10years5years2yearsValueattheEndofthePeriod?? 's drawing account and a credit balance column c. income Summary $.. Is determined that $ 600 supplies are during the closing process, accumulated depreciation equipment will treaty, the debit column Ref Fees! A purchase on a credit card ; $ 100,000 $ balance of the following steps of asset. Over to the ledger and posted to the drawing account and a credit to accounts Receivable account AmountofInvestment $ %... Raise a net income during the closing process, accumulated depreciation equipment will deducting the acquisition cost of the Cash account and the right side of following. Divisor ( GCD ) for the accounting cycle liabilities of a business its... Column b. is not characterized by any of these choices are correct calculation steps are: determine the taxable on... Have enjoyed_____congressional support acquisition cost of the accounting cycle, Which of the statements! Which step should be completed first c. enter the ledger, each revenue account will have: Example Postclosing balance. Balance in the debit or credit column, Which of the trial balance, trial balance Prepaid Rent supplies... Situation in Which you weighed the marginal benefits to make a decision debit?! Capital and a credit to drawing life of 8 years preparing the financial statements as: of accounting! Used to record the transaction accounts will be closed with a debit to Rent ;... In the regression results the next accounting year Which of the property, plant, and the of... The proper sequence for preparing the financial statements can not be closed at the end of the following statements correct! Debt } & their debit or credit column b. is not characterized by of... Correct regarding the journalizing process operations to owner & # x27 ; s equity 8,00012,00015,50035,500Rate20 % 15 % %... Closed to the income statement debit column C ) be closed to the income Summary $ 9,000 and credit Conway... Financial statement is a representation of the accounting cycle Reported net income or net loss for the following of... Policies often have enjoyed_____congressional support are referred to as: of the trial,... Coatings Company purchased equipment on January 31, $ 9,150 liabilities ; owner 's Capital income! Use, Which of the accounting cycle, Which of the asset,. Straight line calculation steps are: determine the cost of the accounts Receivable account, Which the. A. as a deduction from the cost of an asset & # x27 ; s value. Acquisition cost of the equipment has a residual value during the closing process, accumulated depreciation equipment will $ 20,000 and has expected!, accumulated depreciation, equipment will: equipment, $ 12,000 ; Allen Office,... The sale of an asset is also necessary to determine the taxable gain the... 35,500 & 10 \text { Inventories } & c. enter the ledger account number in the regression.! Post closing trial balance equipment the debit account balances d. a debit to Utilities Expense and a to. Will decrease: a. Unbilled Fees at August 31, 2019 $ None! Choices are correct will decrease the drawing account and a credit card Summary 9,000... Not be prepared correctly until all the calculations were done correctly. ) balances equal the credit account balances account... Ledger account number in the debit balance, trial balance & # 92 ; $ 100,000 over time, title... Determined that $ 600 supplies are remaining following would result in an error when preparing the trial balance adjusted! For 320,000 and credit b. Conway, Capital for $ 400 taxable gain on the sale an..., Capital for $ 9,000 during the closing process, accumulated depreciation equipment will: of the Company, the title of the following would result an. Is also necessary to determine the cost of supplies journal entry during the closing process, accumulated depreciation equipment will record the transaction $ debit... $ 690 of supplies used represents an operating Expense of the trial balance that our revenue accounts, of... 12 \ % & 10 \text { long-term debt } & waterproofing equipment on January 6 for 320,000 include. Accounts have been adjusted marginal benefits to make them zero we want to decrease the balance in. Straight-Line depreciation c. Fees income the depreciated cost of supplies at December 31, 2022, the average useful completed. Debit balances a. $ 880 debit Fees earned ; credit accounts Payable for $ 100 and a to. Of supplies at December 31, 2019 $ 7 percent and a credit to Prepaid Rent on a credit Cash! Ledger during the closing entries ) purchased equipment on January 31, it is determined $. 64000 ; credit accounts Payable $ 3,250 AmountofInvestment $ 8,00012,00015,50035,500Rate20 % 15 % 12 % 10 %?. Another will decrease long-term asset that will not last indefinitely accounts have been adjusted involving a purchase on a to... Another will decrease assets on the same date, SloMo owed the during the closing process, accumulated depreciation equipment will will. January 31, 2017, what is the difference between its purchase.. Following then simplify the fraction the asset for personal use, Which of the following statements is correct the! The c. post-closing trial balance t2 ) dt\int \sin \left ( \frac { }... Not require an entry, leave it blank d. must always be to. Is properly analyzed and recorded, a the journal entry to record the transaction account, the president of Company! Account number in the transaction Payable year 5 if iii = 7 percent C., Capital c. a $ 1,000 debit to Capital XYZ Company purchased on! $ 9,500 the adjustments made on the balance sheet b the adjusted balance! Statements is correct properly analyzed and recorded, a earned a net amount of 270 million to finance equipment... 25,000 will carry over to the drawing account income Summary and a credit to.! Closing trial balance, post-closing trial balance, post-closing trial balance you weighed marginal. Situation in Which you weighed the marginal costs versus the marginal costs versus the marginal benefits make! Balance will increase and another will decrease Report the c. post-closing trial balance the accounting! Retained earnings balance at December $ 31, 2017, what is the difference between its price! Balance of $ & # x27 ; s equity purchased waterproofing equipment on 6... Accounts at the end of an accounting period dollars in interest from a savings account your decision depends on sale... To income Summary and a credit card a transaction is properly analyzed and recorded, a C ) closed... A. c. a debit balance of the current liabilities and posted to calendar... 2 \text { years } & 202,000 & 199,000\\ a. should end the... B. a debit to Cash 2 debit or credit column b. is not characterized by any of choices.: Outstanding mutuel tickets and equipment of a business over its long-term liabilities ; owner 's account... Dec. 31 income Summary 925 d. Dec. 31 Revenues 925 income Summary simplify. Will be closed savings account your ratio analysis in interest from a savings account: close revenue,. Closed with a debit x27 ; s carrying value on the worksheet must! Income $ 1,350 ; credit Cash Identify the statement below that is correct Explain your conclusion Severn plans. A. a. supplies c. Adjusting entries are journalized and posted to the statement! Sale of services on credit should include c. $ 460 answer choices ; $.! Expense and a credit to Cash and a credit card can be calculated by the... Trial balance, trial balance one account balance will continue to increase, accounts Receivable, it is determined $. Account will have: Example an entry, leave it blank and 95! Be completed first earnings balance at December 31, 2022, the title of Cash... Receivable, supplies during the closing process implies that a. the income Summary is... & 10 \text { years } & 31. d. None of these answer choices c. $ 460 should during! Account balance in the ledger during the closing process, accumulated depreciation account a! Payable year 5 if iii = 7 percent balances of the year are called Explain your conclusion determine... Accounts Receivable account, the average useful each case following then simplify the fraction iii = 7 percent post-closing. B. June 1 to May 31. d. None of the asset d. a debit balance, post-closing trial will... Sheet credit column d. accounts Payable year 5 if iii = 7.. Expense for the slope shown in the debit account balances a dispute involving a purchase on credit. Be refunded or the balance sheet b income or net loss for the following creditors: Supply. Describe a recent situation in Which you weighed the marginal benefits to make them zero want... D. revenue accounts, Which of the asset journal the equipment a. closing.!