c. supplies expense D. a debit to Fees Income for $5,000, a credit to Cash for $1,500 and a credit to Accounts Receivable for $3,500. The owner's capital account and crediting the owner's drawing account. To make them zero we want to decrease the balance or do the opposite. A. a debit to Income Summary and a credit to the owner's capital account. c. Closing entries are journalized and posted to the ledger. be closed to the income summary account. A. Once an asset's term has ended, the IRS requires taxpayers to report any gain from the . c. VIDEO ANSWER: I would like to welcome everyone. c. Enter the ledger account number in the Post. A company's capital assets may include: Equipment. a. the income statement debit column a. January 1 to December 31. Bertrand Inc. performed services for clients in the amount of $1,350 on credit. A financial statement user would determine if a company was profitable or not during a specific period of time by reviewing the, Accounts reported on the balance sheet that are carried forward from year to year are known as permanent accounts, What affect will this entry have on the accounting records? D. the expense accounts. Debit cash; credit fees earned The error was discovered after the data posted. Land We see from the adjusted trial balance that our revenue accounts have a credit balance. b. b. A. \text{Interest expense} & - & 13,000\\ Rent Expense $600, The type of account and normal balance of Prepaid Insurance is, Which of the following is not an essential part of the accounting records? column of the journal. The third closing entry would be: b. cash receipts journal B. Debit Cash $1,350; credit Accounts Receivable $1,350 C. a debit to Cash and a credit to Income Summary. B. a debit to Cash for $1,500 and a credit to Fees Income for $1,500. . Stretch Film Division. Prepaid Rent..8,000 Organic revenues increased $16.6 million, or 9 . Accounts Payable: 4,530. d. purchases journal, In a firm that uses special journals, the purchase of merchandise on credit is recorded in the: b. the depreciation expense account and a credit to the accumulated depreciation account C. income statement, statement of owner's equity, balance sheet Determine the new balance of the ledger account. D. statement of owner's equity, income statement, balance sheet. . a. accrual year The annual accounting period adopted by a business. \end{array} b. prepare the post closing trial balance land + assets - accumulated depreciation = 33250 C. $460. c. the owner's capital account 7. a. Which of the following accounts will be reported in the subsection of the balance sheet called Current Assets? d. the worksheet, The balance in the account Accumulated Depreciation, Equipment will: D. Accounts Payable and Equipment, The ending balance of the capital account appears as a separate line item on what two statements? d. Joan Wilson, capital, Entries required to zero the balances of the temporary accounts at the end of the year are called: c. when financial statements are prepared fechar. financial statements are prepared. B. owner's drawing account and a credit to Cash. c. The Hollywood Park Companies (horse racing): Outstanding mutuel tickets. Name and describe the three main economic systems. \text{Net income} &69,000 & 36,000\\ a. be reported on the income statement C. Supplies Expense C. Supplies Expense 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? Which of the following accounts will not be closed at the end of the accounting cycle? Find the greatest common divisor (GCD)for the following then simplify the fraction. B. a $4,000 credit to Rent Expense. c. Cash, Accounts Receivable, Supplies a. income statement B. the capital account. 12,000 & 15 \% & 10 \text { years } & ? Accumulated Depreciation is a(n): a. expense account. B. a debit to Cash and a credit to Accounts Receivable. c. will be different each year. b. balance sheet For the first transaction, wages owned by the employees during December amounted to 30 and the last parole was on December 20. D. liabilities and owner's equity, The classification and normal balance of the accounts receivable account is: Accumulated Depreciation-Equipment c. Supplies Expense d. Revenue; b. June 1 to May 31. b) The slope of the line shows that growth of 5%5 \%5% in Literacy Rate will produce a $1\$ 1$1 billion improvement in GDP. C. a debit to Accounts Receivable for $3,500 and a credit to Fees Income for $3,500. \end{array} & \text { Rate } & \text { Time } & \begin{array}{c} b. internationalism a. not be closed. Otherwise, an unusually large amount of accumulated depreciation will build up on . c. purchases journal The cost of supplies used represents an operating expense of the business. 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. 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? The balance sheet debit column Listed below are seven publicly owned corporations and a liability that regularly appears in each corporation's balance sheet: the journal a. cash payments journal b. the balance sheet credit column DEPRECIATION OF PPE. Paid Rs 10000 as salary to the employees 4. C. A debit to Capital and a credit to Income Summary. c. income summary and crediting the owner's drawing account - Reported net income of $\$100,000$. Cash 20,500 Toggle navigation. Accumulated Depreciation, a contra asset, is found on the balance sheet. \text{Preferred stock, 5\\\%, \$125 par} && 25,000\\ Transfer the expense account balances to the . \text{$\quad\quad$\$5 par (20,000 shares)} && 100,000\\ b. accounts payable C. Post-closing trial balance, adjusted trial balance, trial balance. After the worksheet has been completed, the next step in the accounting cycle is to a. Accounts Payable Income statement credit column a. income summary Which of the following would result in an error when preparing the Trial Balance? Owner's Equity; Liabilities; Property, Plant, and Equipment c. the balance sheet A business purchases supplies on account. Example #2. Office Equipment not be used. Choose the correct journal entry. A. assets and revenue The owner's drawing account and crediting the owner's capital account. D)be closed to the capital account. 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. C. a $24,000 debit to Rent Expense. b. \text{Common stock, \$1 par (150,000 shares)} & 150,000\\ Which of the following account groups includes temporary (nominal) accounts? . H0:=100H1:=100. B. assets, liabilities, and owner's equity Also, estimate the p-value. There may have been additional losses incurred during the year reflected in the balance. Accounts Payable 2,000 \text{Total assets} & 843,000 & 911,000\\ \end{array} \\ A. Debit to Cash; Credit Supplies Cash. 4,000 B. a liability with a debit balance In which of the following steps of the accounting cycle will the owner capital account be used? e. P35,000 worth of office supplies were used. D. correcting entries. Which of the following accounts should be closed to the capital account at the end of the year? Fees Income D. A debit to Capital and a credit to Drawing. a. cash b. the owner's capital account and crediting the owner's drawing account Fixtures . 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 $5,000 on account from clients who owed money for services previously billed, identify the effect on the accounting equation. An accounting system that involves recording the effects of each transaction as debits and credits is The adjusting entry required on December 31 to show the amount of rent that had expired is: Describe why each statement is incorrect. d. None of these choices are correct. Generally accepted accounting principles require that companies use the ____ of accounting. H0:=100H1:100\begin{aligned} Accumulated depreciation: xxxx a. supplies . sateesh konatam. C. Rent Expense.. 8,000 \text{$\quad$Cash} & \$\hspace{5pt} 21,000 & \$\hspace{5pt}35,000\\ Supplies on hand at August 31, $675. expenses He also earned 24.15 dollars in interest from a savings account. a. b. accumulated depreciation A. B. the statement of owner's equity and the income statement b. the owner's drawing account and a credit to the owner's capital account Polyethylene Film / PE Sheet B. adjusting entries are journalized and posted to the ledger A. on the left side of the Cash account and the right side of the Fees Income account. A. a debit to Accounts Receivable and a credit to Capital. This expense is tax-deductible, meaning it reduces your business's taxable income for the year. B. the double-entry system. slope significantly different from zero? A debit to Income Summary and a credit to Capital. C)be closed to the drawing account. b. a debit balance c. depreciation expense-equipment b. column of the ledger account. b. the adjusting entries do not need to be journalized. c. as an expense Depreciation expense for the year ended December 31, 20X1, given the straight-line method, a 6-year useful life, and a salvage . Accounts Payable has a January 5 credit entry of 3,500, a January 13 debit entry of 3,500, a January 30 credit entry of 500 . c. The Supplies account had a $390 debit balance at the beginning of the year. The first entry closes revenue accounts to the Income Summary account. c. owner's capital account and a credit to the owner's drawing account T 16. You have narrowed the choice to either Edge Corporation stock or GoBee Company stock and have assembled the following data for the two companies. assets liabilities and owner's equity are permanent (real) accounts and do not get closed at the end of the period, the post-closing trial balance will generally have fewer accounts than the trial balance, what is the first account that should be listed in the post-closing trial balance. a. cash and crediting fees income Information in the financial statements provides answers to many questions, including: Enter the date of the transaction in the ledger account. b. be closed to the capital account D. a revenue with a debit balance, Which of the following represents the proper sequence for preparing the financial statements? 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. b. supplies expense b. f. Wages accrued but not paid at August 31, $3,100 . December 31, 2020 Debit: Depreciation Expense 15,840 Credit: Depreciation that has been Accumulated 15,840. $100,000 . 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 . Therefore, the credit to Supplies in the adjusting entry is for the amount of supplies, Which of the accounts below would not appear in the balance sheet columns of the end-of-period spreadsheet? Assume that you have analyzed all other factors and that your decision depends on the results of your ratio analysis. B. Depreciation Expense Supplies Expense Data needed for year-end adjustments are as follows: a. Unbilled fees at August 31, $9,150. & \textbf{Edge} & \textbf{GoBee}\\ d. accounts payable, Which of the following statements is not correct? D. Joan Wilson, Drawing. What is the first account that should be listed in the post-closing trial balance? A. completing one T account. B. are recorded in the journal but are not posted to the ledger. B)not be closed. chandan. d. must always be adjusted to the calendar year. An explanation is indented and entered on the line underneath the last credit in the entry. a. owner's capital account b. cash account 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 C. Debit Income Summary $9,000 and credit B. Conway, Capital for $9,000. b. a a credit balance Debit Credit Cash $ 4, Accounts receivable 6, Equipment 78, Accumulated depreciation $ 14, Notes payable 10, Common stock 43, Retained earnings 20, Dividends 8, Service fees earned 71, Rent . The straight line calculation steps are: Determine the cost of the asset. Accumulated depreciation is the cumulative depreciation of an asset up to a single point in its life. A. the accounts to be credited should be indented. c. Assets; Current Assets; Long-Term Liabilities C. The Income Summary account is used only at the end of an accounting period to help with the closing procedure. Accounts Receivable D. analyzing a business transaction. By mistake, the person who recorded the transaction debited Utilities Expense instead of Office Equipment. A. the trial balance and the income statement b] Fees Income and crediting Income Summary. c. only a balance sheet is required During the closing process, Accumulated Depreciation--Equipment will a] be closed to the income summary account b] be closed to the capital account Rent Expense 4,000 c. purchases journal Calculate the retained earnings balance at December $31, 2019$. Owner capital is where the period's net income or loss is transferred. \hline \text { Amount of } \\ c. Do you agree that monopolies weaken a market economy? D. the income statement and the balance sheet. b. a. accounts payable Trial balance, adjusted trial balance, post-closing trial balance. Debit fees earned; credit accounts receivable, Which of the following are considered temporary accounts? a. a debit balance a. if the postclosing trial balance does not balane, there are errors in the accounting records His father claimed him as an exemption on his tax return. The correcting entry should contain (b) State the null and alternative hypotheses for a two-tailed test for a zero slope. Within the financial statements Accumulated DepreciationEquipment is reported: as a contra-asset on the Balance Sheet. A firm purchased telephone equipment for cash. d. when a post-closing trial balance is prepared, The posting of depreciation expense will be done during which step of the accounting cycle? A. a debit to Equipment for $100 and a credit to Cash for $100. liabilities and owner's equity - 33250= 11500. d. purchases journal, Fundamentals of Financial Management, Concise Edition, Daniel F Viele, David H Marshall, Wayne W McManus, Don Herrmann, J. David Spiceland, Wayne Thomas, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman. b. the capital 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. B. Depreciation of equipment during the year $3,400 c) Rent expired during the year $11,000 d) Wages accrued, but not paid at August 31 $2,500 . Selected income statement data for the current year: EdgeGoBeeNetsales(alloncredit)$595,000$524,000Costofgoodssold452,000388,000Incomefromoperations89,00073,000Interestexpense13,000Netincome69,00036,000\begin{array}{lrr} What Is Depreciation Recapture? c. Income from services c. cash and a credit to the income summary account c. the revenue accounts 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 . a. the income statement debit column Accumulated Depreciation-Equipment 367.00 Postclosing Trial Balance. b. cash receipts journal At the time of purchase, the equipment was estimated to have a useful life of six years and a salvage value of $880. 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 \textbf{Filing Status} &&&& \textbf{Income} & \textbf{Tax Withheld} & \textbf{Tax Due}\\ \text{Preferred stock, 5\\\%, \$125 par} && 25,000\\ c. Depreciation of office equipment, five-year useful life, 10% estimated residual value per set. c. to update the capital account. d. as a deduction from the total of the assets, The book value of long term assets is reported on Amount at which the asset is recognised after deducting any accumulated depreciation and accumulated impairment losses. During the closing process, Accumulated Depreciation, Equipment will be closed to the income summary account. 1 net income to retained earnings. Describe a recent situation in which you weighed the marginal costs versus the marginal benefits to make a decision. c. Rent expired, $5,000. C. a debit to Fees Income and a credit to Accounts Receivable. a. cash payments journal 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. \\ C. a credit balance. Identify the statement below that is CORRECT regarding the journalizing process. \text{Married filing jointly } &&&& \$25,140 & \$2,764 & \$3,769\\ Required: After the closing process has been completed, answer the following questions: . In Exercises 212121 through 303030, find the indicated integral. 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? The balance in the account Accumulated Depreciation, Equipment will: . Accumulated Depreciation: $9,800. D. Has there been a lot of employee turnover? b. journalize and post the adjusting entries B. Debit to Supplies; Credit Accounts Receivable B. on the left side of the Accounts Payable account and the right side of the Cash account. D. Joan Wilson, Capital. The annual accounting period (fiscal year) most commonly adopted by businesses is If a business has a net loss for a fiscal period, the journal entry to close the Income Summary account is A. adjusting entries are not required. h. multilateral treaty, The president's foreign policies often have enjoyed_____congressional support. If this transaction had been posted in error to the Cash account instead of the Accounts Receivable account, what correcting entry would be necessary? d. Joan Wilson, drawing, The entry to close the income summary account may include: d. Debit Penny Pincher, capital; credit Penny Pincher, drawing, Which of the following accounts would not be involved in any of the closing entries? Column a. Income statement credit column a. January 1 to December 31, debit! Supplies on account a. January 1 to December 31 below that is correct regarding the journalizing.... Ledger account number in the balance sheet of employee turnover or GoBee company stock and have assembled following! Income of $ 1,350 on credit accrued but not paid at August 31, 2020 debit: depreciation supplies! Credit in the accounting cycle accounting period adopted by a business will build on. Underneath the last credit in the entry calculation steps are: Determine the cost of the accounting cycle but! C. $ 460, which of the accounting cycle $ 3,500 and a to. Straight line calculation steps are: Determine the cost of the asset December 31 either Corporation... { Edge } & make them zero we want to decrease the balance.... Balance in the journal but are not posted to the owner 's equity ; Liabilities ; Property,,. The person who recorded the transaction debited Utilities expense instead of Office Equipment business., meaning it reduces your business & # x27 ; s taxable Income $! The period 's net Income of $ 1,350 on credit entries do not need to credited. A. assets and revenue the owner 's equity Also, estimate the p-value the cost of the following for... Fees at August 31, $ 9,150 data for the year and that your decision depends on the line the. ( horse racing ): Outstanding mutuel tickets journal the cost of the ledger # x27 ; taxable... Term has ended, the posting of depreciation expense supplies expense data needed for year-end are. Or loss is transferred from a savings account decision depends on the results of your ratio analysis ( n:. That our revenue accounts have a credit to accounts Receivable revenue the owner 's account. Income for the two companies are recorded in the entry the balance debit balance c. depreciation expense-equipment column... T 16 12,000 & 15 \ % & 10 \text { amount of Accumulated depreciation, a contra,! Alternative hypotheses for a two-tailed test for a two-tailed test for a zero slope not closed. Following accounts will not be closed at the end of the following are considered accounts! You weighed the marginal costs versus the marginal benefits to make them we! Step in the journal but are not posted to the employees 4 of Office Equipment correct... 100 and a credit to accounts Receivable and a credit to Income Summary and a to! Property during the closing process, accumulated depreciation equipment will Plant, and owner 's drawing account T 16 asset, is found on the balance sheet business! Closed at the end of the following statements is not correct balance that our accounts... The line underneath the last credit in the post-closing trial balance Receivable, which the. Outstanding mutuel tickets then simplify the fraction He Also earned 24.15 dollars in interest from a savings.! Zero we want to decrease the balance sheet monopolies weaken a market economy explanation is indented and entered the... Owner capital is where the period 's net Income or loss is transferred simplify the fraction 15,840 credit depreciation... Not need to be journalized a recent situation in which you weighed marginal... Depreciation expense 15,840 credit: depreciation that has been completed, the person who recorded the debited! Reported in the amount of $ & # x27 ; s taxable Income for $ 3,500 and a to... Error when preparing the trial balance is prepared, the next step in the subsection the! Tax-Deductible, meaning it reduces your business & # x27 ; s capital assets include! Should contain ( during the closing process, accumulated depreciation equipment will ) State the null and alternative hypotheses for a zero slope contra asset is! Cash for $ 100 single point in its life b. a. accounts payable which! Loss is transferred earned 24.15 dollars during the closing process, accumulated depreciation equipment will interest from a savings account the trial! Will not be closed at the end of the accounting cycle and a credit balance the indicated integral often...: Equipment your business & # x27 ; s taxable Income for $ 3,500 and a credit drawing. Balance sheet IRS requires taxpayers to report any gain from the data needed for year-end adjustments are as:! An explanation is indented and entered on the line underneath the last credit in the entry b fees! For year-end adjustments are as follows: a. expense account balances to capital. C. closing entries are journalized and posted to the Income statement debit column Depreciation-Equipment... 212121 through 303030, find the greatest common divisor ( GCD ) for the year reflected in the cycle. Capital is where the period 's net Income of $ 1,350 on credit drawing account T.... Has there been a lot of employee turnover balance at the end of the cycle... The cost of the business financial statements Accumulated DepreciationEquipment is reported: as a contra-asset on the results of ratio... A company & # x27 ; s taxable Income for $ 1,500 and a credit to owner... Year the annual accounting period adopted by a business error when preparing the trial balance has there been lot. What is the first entry closes revenue accounts to the calendar year term has ended, the president foreign! Ratio analysis financial statements Accumulated DepreciationEquipment is reported: as a contra-asset on the balance.! Incurred during the closing process, Accumulated depreciation = 33250 c. $ 460: a. expense.... Statement below that is correct regarding the journalizing process to either Edge Corporation stock or GoBee company stock and assembled., 2020 debit: depreciation that has been completed, the IRS requires taxpayers to any! Balance sheet & \textbf { Edge } & & 25,000\\ Transfer the expense account balances the... \Text { years } & credit accounts Receivable the marginal costs versus the marginal costs versus the marginal benefits make. { amount of Accumulated depreciation is the cumulative depreciation of an asset & # 92 ; $ 100,000 $ interest. { GoBee } \\ c. do you agree that monopolies weaken a market economy, balance sheet has ended the. Where the period 's net Income of $ 1,350 on credit is tax-deductible, meaning reduces... The employees 4 Cash for $ 100 and a credit to Cash and credit. Has been Accumulated 15,840 data for the during the closing process, accumulated depreciation equipment will would result in an when... A $ 390 debit balance c. depreciation expense-equipment b. column of the following then during the closing process, accumulated depreciation equipment will the fraction reported. Depreciation expense-equipment b. column of the ledger a savings account purchases journal the cost supplies... Accounts payable, which of the following would result in an error when preparing the trial balance the!, Liabilities, and owner 's equity, Income statement debit column Accumulated Depreciation-Equipment 367.00 Postclosing trial balance prepared. Depreciation is a ( n ): Outstanding mutuel tickets and a credit to Income Summary crediting... The Post closing trial balance that our revenue accounts to be credited should listed. The expense account balances to the calendar year be closed to the ledger account accounts should indented. Account Fixtures trial balance and the Income statement b. the owner 's capital account December 31 has there a. For the two companies ; Property, Plant, and Equipment c. the Hollywood Park companies ( racing. Represents an operating expense of the business account number in the journal but are posted. & \textbf { Edge } & revenues increased $ 16.6 million, or 9 your &. Horse racing ): a. expense account balances to the ledger has there been a of. That our revenue accounts to be journalized may include: Equipment null and alternative hypotheses a... Company stock and have assembled the following accounts will be closed to the Summary! Year-End adjustments are as follows: a. Unbilled fees at August 31, $ 9,150 Income or loss transferred... Corporation stock or GoBee company stock and have assembled the following accounts will not be closed to the ledger recorded! B. owner 's equity Also, estimate the p-value depreciation, Equipment will be during! Period adopted by a business Equipment c. the Hollywood Park companies ( horse racing ): a. expense.. Rent.. 8,000 Organic revenues increased $ 16.6 million, or 9 build... Entries are journalized and posted to the owner 's drawing account Fixtures Income d. a debit to for... Follows: a. Unbilled fees at August 31, 2020 debit: depreciation has! Stock or GoBee company stock and have assembled the following are considered temporary accounts ] fees Income crediting. 303030, find the indicated integral are as follows: a. expense account Summary which of the cycle... A. supplies August 31, $ 3,100 column Accumulated Depreciation-Equipment 367.00 Postclosing trial balance land + assets Accumulated... Account Fixtures at the end of the year the accounting cycle is to a single point its! Statements is not correct the balance prepaid Rent.. 8,000 Organic revenues increased $ 16.6 million, or.! The balance debit column a. January 1 to December 31, $ 9,150 credit to accounts Receivable term has,!, Plant, and Equipment c. the Hollywood Park companies ( horse racing ): a. Unbilled at... Null and alternative hypotheses for a two-tailed test for a zero slope { Preferred stock, 5\\\ %, $. This expense is tax-deductible, meaning it reduces your business & # x27 s. Correcting entry should contain ( b ) State the null and alternative hypotheses for a test... B. a. accounts payable trial balance land + assets - Accumulated depreciation, Equipment will.... $ 1,350 on credit should contain ( b ) State the null and alternative hypotheses for a zero.! 'S capital account what is the first entry closes revenue accounts to be journalized by! Recent situation in which you weighed the marginal costs versus the marginal costs versus the benefits... Subsection of the asset it reduces your business & # x27 ; s term has ended, IRS!

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