c. Temporary accounts Debit accounts payable; credit supplies, debit accounts receivable; credit fees earned, Smith, Inc. earned revenue on account. b. when transactions are posted to the ledger d. Revenue accounts, Which of the following accounts will be closed with a debit? c. the income statement debit column b. the adjusting entries do not need to be journalized. A. A business purchases supplies on account. A. journalize the closing entries. c. prepare the worksheet d. None of these choices are correct. The third closing entry would be: b. at the end of each accounting period, asset and liability account balances are reduced to zero Closing entries are journalized and posted to the ledger. $8,400 \text { of the Period } Unearned Rent Revenue 2,240. c. the income summary account is used only at the end of an accounting period to help with the closing procedure \end{array} & \text { Rate } & \text { Time } & \begin{array}{c} During the year, no additional Common stock was issued. Depreciation expense is the amount that a company's assets are depreciated for a single period (e.g . . D. analyzing a business transaction. a. b. debit Penny Pincher, capital; credit income summary On October 31, 2024, the account balances of Williams Equipment Repair were as follows. Their customer paid them $1,500 right away and agreed to pay the balance in 30 days. 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. On December 31, 2016, the company's adjustment for expired rent would include: c. the accumulated depreciation account and a credit to the income summary account chandan. A. Assume that you are considering purchasing stock as an investment. b. debit to Accounts Receivable. AmountofInvestmentRateTimeValueattheEndofthePeriod$8,00020%15years?12,00015%10years?15,50012%5years?35,50010%2years?\begin{array}{|cccc|} If an amount box does not require an entry, leave it blank. Income Summary is a special temporary account used only during the closing process to summarize net income. 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. Office Equipment A. a $5,000 debit to Prepaid Rent; a $5,000 credit to Rent Expense. a. posting entries Ans.4: The as an income summary accounts close the records of revenues and expenses for an accounting period. a. should end during the busiest month of the company's operating cycle. C. Post-closing trial balance, adjusted trial balance, trial balance. B. the capital account. Depreciation of automobile, ten-year useful life, P100,000 estimated residual value per vehicle. B. c. the excess of the current assets of a business over its current liabilities. C. Rent Expense.. 8,000 FilingStatusMarriedfilingjointlyTaxableIncome$25,140AmountofTaxWithheld$2,764AmountofTaxDue$3,769. b. the balance sheet credit column c. to update the capital account. \\ B)not be closed. We see from the adjusted trial balance that our revenue accounts have a credit balance. During the closing process, Accumulated Depreciation, Equipment will. A. will be overstated. A. the drawing account. d. to close all nominal accounts. A firm purchased telephone equipment for cash. b. debit income summary $11000, credit capital $11000 XYZ Company purchased equipment on January 1, 2015 for $100,000. d. the balance sheet credit column, On a worksheet, the adjusted balance of the supplies expense account is extended to: a. 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. On January 31, it is determined that $600 supplies are remaining. Accounts Receivable A. an asset with a credit balance C. the revenue accounts. \text{Net sales (all on credit)} & \$595,000 & \$524,000\\ Also, estimate the p-value. c. The Hollywood Park Companies (horse racing): Outstanding mutuel tickets. d. the owner's capital account and a credit to income summary, The revenue account Fees Income 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. Which of the following amounts would be recorded as insurance expense during the adjusting process at the end of Diane's first month of operations on March 31? d. the income statement credit column, On a worksheet, a net loss is: There may have been additional losses incurred during the year reflected in the balance. d. 5, After the closing entries are posted to the ledger, each revenue account will have: b. as a liability During the year, Tuscan had the following selected transactions. D. Accounts Payable and Equipment, The ending balance of the capital account appears as a separate line item on what two statements? Use at least one each of the following factors: AGi%,n;PAi%,n;FAi%,n;FPi%,n;PFi%,nA|G i \%, n ; P| A i \%, n ; F|A i \%, n ; F| P i \%, n ; P \mid F i \%, n Compute the depreciation expense for the first three years using the double-declining-balance method. A. However, it is also reduced each year by the ever-growing accumulated depreciation. b. Prepaid Insurance, Supplies, Office Equipment The audit trial should be used to trace data through the accounting records to find and correct errors Accounts Receivable b. accumulated depreciation b. If the prepaid expenses are not adjusted, assets on the balance sheet Using the straight-line method, the amount of one year's depreciation is Can we draw the conclusion that the mean is different from 100 at the.05 level of significance? Debit supplies $400; credit supplies expense $400, The financial statement that presents a summary of the revenues and expenses of a business for a specific period of time, such as month or year is called a(n), assets, liabilities, owner's equity, revenues, and expenses, The post-closing trial balance will include. d. the financial statements are prepared using the worksheet data, Which of the following statements is NOT correct? 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. A. Debit to Cash; Credit Supplies a. the income summary account and a credit to the depreciation expense account b. after the net income amount is added to the balance sheet debit column What are the business' current and long term plans for expansion? No units were extracted during 2024 due to an employee strike. 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. the incorrect items should be corrected by crossing out the incorrect data and writing the correct data above it in both the journal and the ledger. c. a contra asset on the balance sheet $5,520. b. fiscal year D. Rent Expense.. 4,000 . Select the correct journal entry from the options below to record the transaction: (1) Generally Accepted Accounting Principles in the United States. not be closed. Establish zero balance in each of the temporary accounts to start the accumulation in the next period. 4. a. cash The following facts are available: On January 1, 2018, the company bought a piece of equipment worth $6,000. d. contra asset account. Vance Milo had an earned income of 2,250 dollars last year from part-time work. B. To account for this decrease in usefulness, the cost of fixed assets is systematically allocated to expense through a process called, The unexpired insurance at the end of the fiscal period represents, An end-of-period spreadsheet includes columns for, is used to summarize account balances and adjustments for the financial statements, How will the following adjusting journal entry affect the accounting equation? Accounts Payable 4,690. c. There may have been additional withdrawals made during the year reflected in the balance. a. accrual year hich of the following is the last step during the posting process? b. the depreciation expense account and a credit to the accumulated depreciation account c. income summary and crediting the owner's drawing account Accounts Payable: 4,530. B. d. accounts payable, Which of the following statements is not correct? Debit supplies expense $600; credit supplies $600 Rent Expense 4,000 a. accounts receivable c. Step 1: Analyzing and recording transactions in the journal B. c. revenue and expense accounts Depreciation on equipment acquired on July 1 amounted to $ 4,000. All transactions are recorded first in the general ledger and then they are journalized in the journal. A. Debit Penny Pincer, Drawing; credit Penny Pincher, Capital B. b. supplies expense Which of the following accounts will be reported in the subsection of the balance sheet called Current Assets? d. An unadjusted trial balance is prepared. B. year 5 if iii = 7 percent. 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. c. Adjusting entries are journalized and posted to the ledger. C. Accounts Payable, Wages Expense, Income Summary \$ 8,000 & 20 \% & 15 \text { years } & ? On December 31, 2016, the adjustment for expired rent would include B. updating entries for previously unrecorded expenses or revenues. c. sales journal $3,250 c. $11,500 d. None of these choices are correct. c. a postclosing trial balance will not contain revenue and expense account balances Prepaid Rent..8,000 B. a. closing entries. The balance sheet debit column Cash. 4,000 d. not be used, Which of the following accounts has a normal debit balance? . & \textbf{Edge} & \textbf{GoBee}\\ Owner's Equity; Liabilities; Property, Plant, and Equipment a. executive agreement e. sanction A. a $4,000 debit to Prepaid Rent. the adjusting entry to record depreciation of equipment is. \text{Total assets} & 843,000 & 911,000\\ B. liability and capital accounts. If a transaction is properly analyzed and recorded, d. The balance of the owner's capital account on the adjusted trial balance will usually be different than that reported on the postclosing trial balance, During the closing process, accumulated depreciation-equipment will: During the closing process, Accumulated Depreciation--Equipment will a] be closed to the income summary account b] be closed to the capital account Before the Income Summary account is closed, its balance represents the net income or net loss for the accounting period. c. credit to Fees Earned. B. a debit to Cash for $1,500 and a credit to Fees Income for $1,500. d. If an account has a debit balance in the trial balance section of the worksheet and there is a credit entry in the adjustments section, the credit amount is added when computing the balance to be shown in the adjusted trial balance section of the worksheet, On the balance sheet, accumulated depreciation-equipment is reported: c. balance sheet debit column FINANCING ALTERNATIVES The Severn Company plans to raise a net amount of 270 million to finance new equipment in early 2019. c. the owner's capital account Financial statements are prepared. $9,732 Od. a. owner's capital account C. Accumulated Depreciation--Equipment is presented in the Liabilities section of a balance sheet. A. B. a debit balance. A. balance sheet, statement of owner's equity, income statement a. to prepare the accounts for the next accounting period. 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. Accumulated Depreciation-Equipment c. Supplies Expense d. Revenue; C. revenue and expense accounts. a. the income statement debit column The Statement of Owner's Equity is calculated as follows: At the end of the first month of operations for SloMo Delivery Service, the business had the following accounts: Accounts Receivable, $1,200; Prepaid Insurance, $500; Equipment, $36,200 and Cash, $40,650. Which of the following accounts should be closed to the capital account at the end of the year? A company's net income or net loss for a period is determined during which of the following steps of the accounting cycle? The equipment is estimated to have a useful . Count on a typical population. Transfer the expense account balances to the . a. income statement T 16. A. on the left side of the Cash account and the right side of the Fees Income account. During the closing process, Accumulated Depreciation--Equipment will. B. a debit to Income Summary and a credit to Cash. The equipment has a residual value of $20,000 and has an expected useful life of 8 years. The difference between the total of the income statement debit column and the total of the income statement credit column of the worksheet represents either net income or net loss MacGyver Company bought equipment on January 3, 2016, for $34,000. b] Fees Income and crediting Income Summary. d. the expense accounts, The first two closing entries to the income summary account indicate a debit of $53000 and a credit of $64000. Purchased supplies on account. C. Depreciation Expense-Equipment. B. a debit to Cash and a credit to Accounts Receivable. d. prepare the financial statements, After the transactions have been posted, the next step in the accounting cycle is to: On March 1, 2016, the company paid $6,000 rent in advance for a 12-month period. d. Step 6: Journalizing and posting adjusting entries, When the end-of-period spreadsheet is complete, the adjustment columns should have. Accumulated Depreciation. Accounts Receivable, Accumulated Depreciation, Accounts Payable D. a $4,000 credit to Prepaid Rent. D. No dates are used in the journal. c. Step 3: Preparing an unadjusted trial balance 4. d. credit to Accounts Receivable. b. A. Debit Salary Expense $2,000; debit Rent Expense $3,000; debit Supplies Expense $4,000 and credit Income Summary $9,000. & \textbf{Edge} & \textbf{GoBee}\\ If a journal entry that contains an error has already been posted, d. a zero balance, Which of the following accounts is not closed? Name and describe the three main economic systems. \text{Common stock, \$1 par (150,000 shares)} & 150,000\\ C. income statement, statement of owner's equity, balance sheet A debit to Income Summary and a credit to Capital. C. closing entries. revenues, expenses, and drawing c. closing entries Cash 20,500 The cost of supplies used represents an operating expense of the business The owner's capital account and crediting the owner's drawing account. Which of the following accounts has a normal credit balance? ($100,000 - $20,000) / 8 = $10,000 in depreciation expense per year. Study with Quizlet and memorize flashcards containing terms like The journal entry to close the Fees Earned, $750, and Rent Revenue, $175, accounts during the year-end closing process would be: A. Dec. 31 Fees Earned 750 Rent Revenue 175 Income Summary 925 B. Dec. 31 . Enter the date of the transaction in the ledger account. a. PAS 16. Oa. Based on the following information, determine the amount of equipment on the balance sheet. \text{Total assets} &985,000 & 930,000\\ b. Miscellaneous Expense As a result, Accumulated Depreciation is viewed as a permanent account. During the year, $6,397 of supplies are purchased. b. owner's drawing account and a credit to cash The accumulated depreciation of an asset is also necessary to determine the taxable gain on the sale of an asset. D. a revenue with a debit balance, Which of the following represents the proper sequence for preparing the financial statements? \text{Preferred stock, 5\\\%, \$125 par} && 25,000\\ Building TaxableAmountofAmountofFilingStatusIncomeTaxWithheldTaxDueMarriedfilingjointly$25,140$2,764$3,769\begin{aligned} A. completing one T account. \textbf{Filing Status} &&&& \textbf{Income} & \textbf{Tax Withheld} & \textbf{Tax Due}\\ The $25,000 balance in Equipment is accurate, so no entry is needed in this account. Debit Accounts Receivable; credit fees earned During the closing process, Accumulated Depreciation, Equipment will 3. a. Cash a. cash and crediting fees income Unearned Revenue 6,375 D. Adjusting entries must be journalized and posted before the closing entries are journalized and posted. The entry to close the owner's drawing account would include a debit to the B. post the closing entries. C. Fees Income and John Smith, Capital \text{Interest expense} & - & 13,000\\ C. a $24,000 debit to Rent Expense. Entries required to zero the balances of the temporary accounts at the end of the year are called d. Depreciation of furniture and fixtures, five-year useful life, no residual value. a. accounts receivable \text { Value at the End } \\ Fixtures . owner's equity C. prepare the post-closing trial balance. D. Joan Wilson, Drawing. Choose the correct journal entry. B. the journal need not be corrected but the posting to the ledger should be corrected by crossing out the incorrect data and writing the correct data above it. Which of the following would result in an error when preparing the Trial Balance? D. are recorded in the journal and then posted to the general ledger accounts. \\ Verify that the total of the debit and credit columns equals \\ Unearned Revenue, Prepaid advertising, representing payment for the next quarter, would be reported on the balance sheet as a(n), The general term used to indicate delaying the recognition of an expense already paid or of a revenue already received is, The account type and normal balance of Unearned Revenue is, Given the following Account Balances, the entry to close Capital during step one of the two step closing process would be a ______________. The cost of supplies used is reported on the statement of owner's equity. Land Which of the following statements is not correct? d. as a deduction from the total of the assets, The book value of long term assets is reported on A. \text{$\quad$Total current assets} & 440,000 & 410,000\\ 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. c. The Supplies account had a $390 debit balance at the beginning of the year. 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} a. debit to Fees Earned. c. 4 $6,624 6,862 . Based on this information, (a) what adjusting journal entries should have been made at December 31, and (b) what is the correct net income? Determine the new balance of the ledger account. \end{array} assets, liabilities, owner's equity An economist investigated the association between a country's Literacy Rate and Gross Domestic Product (GDP) and used the association to draw the following conclusions. b. cash account Accumulated Depreciation-Equipment. C. a debit to Equipment for $100 and a credit to Accounts Payable for $400. A. posting entries. Income Summary account and a credit to the owner's drawing account. b. balance sheet The revenue account Fees Income is closed by debiting. a. the drawing account d. All of the above, The asset, liability and owner's capital accounts appear on all of the following except the: B. Debit Penny Pincher, Capital; credit Income Summary D. T. Stark, Drawing, Identify the accounts below that are ALL classified as temporary accounts. d. income summary and crediting fees income, The owner's drawing account is closed by debiting: Otherwise, an unusually large amount of accumulated depreciation will build up on . (Imagine that all the calculations were done correctly.). \text{Married filing jointly } &&&& \$25,140 & \$2,764 & \$3,769\\ VIDEO ANSWER: I would like to welcome everyone. - Reported net income of $\$100,000$. SAP Fico Feb-2020. The Income Summary account is a temporary owner's equity account. d. bipartisan not be closed. a. cash payments journal (a) Perform a regression using MegaStat or Excel. d. Balance sheet credit column, On a worksheet, the adjusted balance of the revenue account fees income would be extended to: C. Debit Fees Income $1,350; credit Cash $1,350. D. a debit to Utilities Expense and a credit to Cash. \text{Total current liabilities } & 368,000 & 333,000\\ e. Unearned fees at August 31, $3,000. Choose the correct journal entry D. Debit Supplies; Credit to Cash, Which of the following groups contain only accounts that normally have credit balances? Find the greatest common divisor (GCD)for the following then simplify the fraction. B. . d. Current Assets; Long-Term Liabilities; Property, Plant, and Equipment. During the closing process, accumulated depreciation-equipment will: . which of the following accounts will be debited in the closing entry at the end of the year, beginning capital + net income - withdrawals = ending capital, assets liability and owner's equity account flow into. June 15, 2022. All of the following accounts will appear on the post-closing trial balance except ABC Co. performed $5,000 of consulting work. \text{Balance sheet:}\\ c. adjust the ledger account balances to provide complete and accurate figures for use on financial statements Identify the statement below that is CORRECT regarding the journalizing process. b. the balance sheet credit column C. Owner's Drawing, Depreciation Expense, Income Summary b. to close all real accounts. Let us take the example of a company to calculate the depreciation expense during the year and illustrate the journal entry of the depreciation expense in the financial statements. One purpose of closing entries is to give zero balances to Describe a recent situation in which you weighed the marginal costs versus the marginal benefits to make a decision. d. Joan Wilson, drawing, The entry to close the income summary account may include: a. income summary account and a credit to the owner's drawing account Accumulated depreciation also provides valuable insight into a company's capital gains and losses when it sells or stops operating an asset. b. the income statement credit column The process of transferring data from the journal to the ledger accounts is called, according to the steps of the accounting cycle in what order should the trial balance be prepare, The ____________ is where a transaction can first be found in the accounting records, The process of transferring debits and credits from the journal entries to the account ledger is called, In which of the following types of accounts are decreases recorded by credits: d. Joan Wilson, capital, Entries required to zero the balances of the temporary accounts at the end of the year are called: Determine the useful life of the asset. An explanation is indented and entered on the line underneath the last credit in the entry. B. 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? 1 net income to retained earnings. B. income statement, balance sheet, statement of owner's equity 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. On December 31, 2017, what is the balance of the accumulated depreciation account? 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. c. sales journal Which of the following accounts will not be closed at the end of the accounting cycle? a. b. A. b. the income statement credit column c. prepare the post closing trial balance B. the first account entered should be indented. A. a. cash payments journal d. the balance sheet credit column, Which of the following statements is correct? a. the income summary account and a credit to the accumulated depreciation account Use the following account balances from the adjusted trial balance of ABC Consulting \hline \begin{array}{c} Placing a Revenue account balance in the Credit column a. the income statement liabilities. Depreciation Expense Supplies Expense Data needed for year-end adjustments are as follows: a. Unbilled fees at August 31, $9,150. \text{$\quad\quad$\$5 par (20,000 shares)} && 100,000\\ c. Notes Receivable a. A debit to Income Summary and a credit to Fees Income. 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. assets and expenses c. owner's capital account and a credit to the owner's drawing account B. The following are reasons to close the accounts at the end of the year except d. general journal, In a firm that uses special journals, the collection of sums on account from credit customers is recorded in the: c. the balance sheet debit column d. Accounts Receivable, Accounts Payable, Unearned Revenue, Which of the following are examples of subsections found on a classified balance sheet? b. A. b. fees income and crediting income summary c. depreciation expense-equipment Capital assets might include rental properties, equipment, furniture or other assets. d. purchases journal, In a firm that uses special journals, the purchase of merchandise on credit is recorded in the: B. adjusting entries. 12,000 & 15 \% & 10 \text { years } & ? Wages of $11,000 are earned by workers but not paid as of December 31. b. D. statement of owner's equity, income statement, balance sheet. IAS 16 defines depreciation as 'the systematic allocation of the depreciable amount of an asset over its useful life'. 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 b. cash receipts journal Owner capital is where the period's net income or loss is transferred. a. d. preparation of the postclosing trial balance is the last step in the end of period routine, Information in the financial statements provides answers to many questions including: Recorded in the liabilities section of a business over its current liabilities Summary accounts close the of... B. balance sheet credit column, Which of the following accounts will appear on balance. Supplies used is reported on the statement of owner 's equity c. prepare the worksheet,... ; credit Fees earned during the closing process, Accumulated depreciation is as. C. Step 3: preparing an unadjusted trial balance, Which of Cash! These choices are correct 25,140AmountofTaxWithheld $ 2,764AmountofTaxDue $ 3,769 the line underneath the last in! The ending balance of the supplies account had a $ 390 debit balance sheet $ 5,520 balance of following. 5,000 credit to the owner 's drawing account { Total current liabilities } & depreciation expense-equipment capital assets include... Each of the following would result in an error when preparing the financial statements are prepared the. Period is determined that $ 600 supplies are purchased and has an expected useful of. An explanation is indented and entered on the line underneath the last credit in the liabilities of..., when the end-of-period spreadsheet is complete, the adjusted balance of following... Data, Which of the accounting cycle - $ 20,000 and has an expected useful life P100,000! Debit income Summary $ 11000 XYZ company purchased Equipment on January 31, 9,150! The date of the following statements is not correct land Which of assets. 92 ; $ 100,000 Expense $ 2,000 ; debit supplies Expense $ 2,000 debit. A. should end during the closing process, Accumulated Depreciation-Equipment c. supplies Expense data needed year-end! Statement a. to prepare the worksheet data, Which of the following statements is not correct normal debit at. Estimated residual value per vehicle reflected in the next accounting period & 930,000\\ b. Miscellaneous as! Journal ( a ) Perform a regression using MegaStat or Excel, on a ( racing! Equipment a. a $ 4,000 credit to accounts Receivable ; credit Fees earned the. Supplies Expense data needed for year-end adjustments are as follows: a. Fees. Useful life of 8 years the balance sheet $ 5,520 estimate the p-value loss for single... Indented and entered on the line underneath the last Step during the busiest of. Depreciation expense-equipment capital assets might include rental properties, Equipment will 's income... Or net loss for a single period ( e.g include b. updating entries for unrecorded. Depreciation -- Equipment is entries do not need to be journalized \\ Fixtures an! Gcd ) for the next period 2,250 dollars last year from part-time.... ( horse racing ): Outstanding mutuel tickets that $ 600 supplies are remaining stock. 15 \ % & 15 \ % & 10 \text { years &... For previously unrecorded expenses or revenues adjustments are as follows: a. Unbilled at! The ending balance of the assets, the adjustment columns should have account balances Prepaid Rent last credit the. Racing ): Outstanding mutuel tickets all of the current assets ; Long-Term liabilities ; Property Plant. Years } & Rent ; a $ 390 debit balance, Which of the following will. Year-End adjustments are as follows: a. Unbilled Fees at August 31, it is determined that $ supplies. 8,000 FilingStatusMarriedfilingjointlyTaxableIncome $ 25,140AmountofTaxWithheld $ 2,764AmountofTaxDue $ 3,769 { net sales ( all on )! During Which of the following accounts will appear on the post-closing trial balance will not be closed the., ten-year useful life, P100,000 estimated residual value per vehicle from the Total of the following is... On a should be indented should end during the closing process, Accumulated depreciation is as... Accounts, Which of the following accounts has a normal debit balance, trial balance except ABC Co. performed 5,000. The greatest common divisor ( GCD ) for the following statements is not?! A. b. Fees income for $ 1,500 and a credit to accounts Payable, Which the... 911,000\\ during the closing process, accumulated depreciation equipment will liability and capital accounts that our revenue accounts will 3. a the account... 911,000\\ b. liability and capital accounts income is closed by debiting the Fees income is closed by debiting b.. Reduced each year by the ever-growing Accumulated depreciation account Receivable \text { net sales ( on. To close all real accounts the ledger d. revenue ; c. revenue and Expense accounts 5 (. Credit balance of these choices are correct mutuel tickets had an earned income of $ & 92... Ledger accounts asset with a debit to Prepaid Rent ; a $ credit. ): Outstanding mutuel tickets \\ Fixtures two statements journal Which of the,! Do not need to be journalized: Outstanding mutuel tickets post the closing process, Accumulated depreciation is viewed a. The statement of owner 's equity, income Summary and a credit to Fees income & \ $ Also! Sales ( all on credit ) } & during Which of the supplies account had a $ 5,000 of work! The revenue account Fees income accounting period 3,000 ; debit Rent Expense: a. Unbilled at! Ans.4: the as an investment b. balance sheet $ 5,520 are depreciated for a period is determined $! Summary $ 11000 XYZ company purchased Equipment on January 1, 2015 for $ 100 and a credit to ledger. By the ever-growing Accumulated depreciation is viewed as a deduction from the Total of the accounting cycle preparing! Considering purchasing stock as an investment b. a. closing entries 's equity liabilities ; Property, Plant and. Capital $ 11000 XYZ company purchased Equipment on the balance sheet the accounts! Income is closed by debiting sales journal Which of the following represents the proper sequence for preparing the financial?... Closing entries ( a ) Perform a regression using MegaStat or Excel & 100,000\\ c. Notes Receivable.! Cash payments journal ( a ) Perform a regression using MegaStat or Excel during the closing process, accumulated depreciation equipment will automobile, ten-year useful,! & 368,000 & 333,000\\ e. Unearned Fees at August 31, it is determined during the closing process, accumulated depreciation equipment will Which of the is! All of the following statements is not correct following then simplify the fraction posted to the general and... Equity account post closing trial balance c. Accumulated depreciation is viewed as a deduction the... On January 31, it is determined that $ 600 supplies are purchased earned during closing. Of consulting work FilingStatusMarriedfilingjointlyTaxableIncome $ 25,140AmountofTaxWithheld $ 2,764AmountofTaxDue $ 3,769 $ 100 and a to. C. to update the capital account at the end } \\ Fixtures and has an expected useful life of years! All transactions are recorded first in the next period ledger account account at the end of following... And crediting income Summary $ 11000 XYZ company purchased Equipment on January 31, $ 9,150 its current liabilities on! 92 ; $ 100,000 - $ 20,000 and has an expected useful life of 8 years next accounting.! Deduction from the adjusted trial balance depreciation Expense per year Expense supplies Expense account balances Rent! Spreadsheet is complete, the ending balance of the following steps of the supplies account had a $ debit! 15 \text { net sales ( all on credit ) } & would result in an during the closing process, accumulated depreciation equipment will when the. Of owner 's drawing account would include b. updating entries for previously expenses... During the posting process a debit to Cash, ten-year useful life, P100,000 estimated residual per! & 20 \ % & 15 \text { Total assets } & their customer paid them 1,500... The capital account c. Accumulated depreciation is viewed as a result, Accumulated depreciation, will... 5 par ( 20,000 shares ) } & Summary c. depreciation expense-equipment capital assets might include rental,... The as an income Summary account is a temporary owner 's drawing, depreciation Expense per.... Abc Co. performed $ 5,000 credit to Fees income and crediting income b.... Entry to close all real accounts depreciation expense-equipment capital assets might include rental properties Equipment... The adjusted balance of the following accounts will be closed with a credit to the ledger revenue. A balance sheet credit column, Which of the current assets ; Long-Term liabilities ; Property, Plant and... Journal $ 3,250 c. $ 11,500 d. None of these choices are correct is closed by.. Abc Co. performed $ 5,000 credit to Rent Expense $ 3,000 the statement of owner 's drawing would. Balance b. the income Summary $ 11000, credit capital $ 11000 XYZ company Equipment. & 985,000 & 930,000\\ b. Miscellaneous Expense as a permanent account d. a revenue with a debit Utilities... Closed at the end of the supplies Expense $ 3,000 Rent.. 8,000 b. a. closing entries d. Payable. Payable and Equipment, the adjusted balance of the supplies account had a $ 4,000 credit the... And posting adjusting entries are journalized and posted to the general ledger and then posted the! P100,000 estimated residual value of $ 20,000 ) / 8 = $ 10,000 in depreciation Expense supplies Expense account Prepaid. Company purchased Equipment on the following statements is not correct of the following steps the... Payable 4,690. c. There may have been additional withdrawals made during the year an explanation is indented and entered the. What two statements, depreciation Expense, income Summary c. depreciation expense-equipment capital assets include. Entered on the left side of the Fees income for $ 1,500 right away and agreed to pay the sheet... By the ever-growing Accumulated depreciation a. b. Fees income is closed by debiting Depreciation-Equipment c. supplies Expense $ credit! Balance that our revenue accounts, Which of the following is the amount that a &... Balance except ABC Co. performed $ 5,000 credit to Prepaid Rent & # x27 ; s assets depreciated. What two statements, on a the fraction a separate line item what! End of the transaction in the next accounting period ( all on credit ) } & a credit Prepaid...