B. C. a debit to Cash and a credit to Income Summary. Accounts Payable Select the correct closing entry that ABC Consulting would make to close their expense account(s) at the end of the accounting period. a. cash receipts journal The adjusting entry required on December 31 to show the amount of rent that had expired is: Assume a company has equipment which is used in its business. d. must always be adjusted to the calendar year. Explain your conclusion. AGi%,n;PAi%,n;FAi%,n;FPi%,n;PFi%,n. When an entry is made in the general journal, A. What is the proper order of the steps? D. prepare the financial statements. revenues, expenses, and drawing A. will be overstated. c. cash and a credit to the income summary account c. either a debit or a credit balance Question 1: For the following transactions, analyze the accounting transactions using the accounting equation framework 1. 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. 4. a. accounts receivable c. credit to Fees Earned. C. a debit to Fees Income and a credit to Accounts Receivable. c. fees income Rent Revenue b. balance sheet b. Chris Benjamin, A&B chief executive officer, stated: "Our high-quality portfolio of grocery-anchored retail, industrial and ground lease assets continued to perform well in the fourth quarter, closing out a year of exceptional results.During 2022, commercial real estate ("CRE") portfolio Net Operating Income ("NOI") increased by 6.3% over 2021 to $117.8 million. Which of the following accounts has a normal credit balance? d. the owner's drawing account is closed to the income summary statement, The entry to close the depreciation expense account would include a debit to: He also earned 24.15 dollars in interest from a savings account. Building Count on a typical population. The equipment is estimated to have a useful . Bertrand Inc. performed services for clients in the amount of $1,350 on credit. If this transaction had been posted in error to the Cash account instead of the Accounts Receivable account, what correcting entry would be necessary? Capital assets might include rental properties, equipment, furniture or other assets. When the asset is sold other otherwise disposed of, you should remove the accumulated depreciation at the same time. One purpose of closing entries is to give zero balances to The balance sheet debit column C. will be reported on the Balance Sheet. Which of the following statements is not correct? Answer the following questions about the closing process. 2. B. be reported on the Statement of Owner's Equity. Accumulated Depreciation-Equipment c. Supplies Expense d. Revenue; B. Debit to Supplies; Credit Accounts Receivable Accounts Receivable 7. a. cash payments journal . 95. A. adjusting entries are not required. B. Debit supplies expense $600; credit supplies $600 d. the income statement credit column, On a worksheet, a net loss is: 2 \$ 8,000 & 20 \% & 15 \text { years } & ? Over time, the accumulated depreciation balance will continue to increase . 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? the end-of-period spreadsheet, Prepaid insurance is reported on the balance sheet as a, Accrued expenses are ordinarily reported on the balance sheet as, Accounts payable would appear on the balance sheet as a(n), Accumulated Depreciation and Depreciation Expense are classified, respectively, as, If there is a balance in the unearned subscriptions account after adjusting entries are made, it represents a(n), Which one of the fixed asset accounts listed below will not have a related contra asset account? B. owner's drawing account and a credit to Cash. b. debit Equipment $3,500; credit Depreciation Expense $3,500. expenses D. liabilities and owner's equity, The classification and normal balance of the accounts receivable account is: e. P35,000 worth of office supplies were used. Use the following account balances from the adjusted trial balance of ABC Consulting Step 9: Journalizing and posting closing entries A. Debit supplies expense $400; credit supplies $400 D. 5. 1 net income to retained earnings. Consider the following series of cash flows: Clearly set up an expression and determine the value of a lump sum equivalent amount of the above cash flows at c. the owner's capital account and crediting fees income b. c. Temporary accounts Credit Cash, all of the information from the journal was correctly transferred to the ledger, Proof that the dollar amount of the debits equals the dollar amount of the credits in the ledger means, Smith Inc. 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. c. will be different each year. A. f. Wages accrued but not paid at August 31, $3,100 . b. the statement of owner's equity b. at the end of each accounting period, asset and liability account balances are reduced to zero . D. A debit to Capital and a credit to Drawing. Determine the new balance of the ledger account. \end{array} transactions are posted to the ledger $28,980 Ob. 'Depreciable amount' is the cost of an asset, cost less residual value, or . T during the closing process, revenues are transferred to the credit side of the income summary . a. if the postclosing trial balance does not balane, there are errors in the accounting records December 31, 2020 Debit: Depreciation Expense 15,840 Credit: Depreciation that has been Accumulated 15,840. 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. a. income statement d. Depreciation of furniture and fixtures, five-year useful life, no residual value. VIDEO ANSWER: I would like to welcome everyone. The following facts are available: On January 1, 2018, the company bought a piece of equipment worth $6,000. \text { Value at the End } \\ Prepaid Rent 4,000. b. a debit to income summary and a credit to cash Ans.1: True Ans.2: False as general ledger accounts may not have balances. Debit supplies $600; credit cash $600 the ledger b. debit income summary $11000, credit capital $11000 A. The cost of equipment is recorded in the account Equipment. D. the total dollar amount debited will equal the total dollar amount credited. C. a debit to Equipment for $100 and a credit to Accounts Payable for $400. b. c. foreign policy a. 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. d. Step 5: Preparing an optional end-of-period spreadsheet. a. a debit to income summary and a credit to fees income \text{Total current liabilities } & 368,000 & 333,000\\ A. C. 9. b. sales journal a. income statement debit column ($100,000 - $20,000) / 8 = $10,000 in depreciation expense per year. As a result, Accumulated Depreciation is viewed as a permanent account. c. sales journal B. a debit to Income Summary and a credit to Cash. A. an asset with a credit balance 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. a. cash payments journal b. Fred Sanford, drawing D. Owner's Drawing, Owner's Capital, Income Summary, Identify the accounts below that are ALL permanent accounts. 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. A debit to Income Summary and a credit to Capital. d. the owner's drawing account and crediting income summary, Which of the following statements is not correct? C. revenue and expense accounts. a. supplies Depreciation expense for the year ended December 31, 20X1, given the straight-line method, a 6-year useful life, and a salvage . After closing entries are posted, the revenue, expense, and drawing accounts will have zero balances. Netsales(alloncredit)CostofgoodssoldIncomefromoperationsInterestexpenseNetincomeEdge$595,000452,00089,00069,000GoBee$524,000388,00073,00013,00036,000. What are the business' current and long term plans for expansion? Which of the following accounts should be closed to the capital account at the end of the year? b. a reduction of capital on the statement of owner's equity Accounts Receivable, Accumulated Depreciation, Accounts Payable 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. Cash a. income summary account and a credit to the owner's drawing account c. be closed to the drawing account 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 . During the year, no additional Common stock was issued. During the year, $6,397 of supplies are purchased. 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. A. a debit to Accounts Receivable and a credit to Capital. A. c. income summary and crediting the owner's drawing account a. journalize and post the closing entries Has a zero balance after the closing process and remains with a zero balance until after the closing procedure for the next period. d. income summary and crediting fees income, The owner's drawing account is closed by debiting: Organic revenues increased $16.6 million, or 9 . How much do customers owe the business? B. a $5,000 debit to Rent Expense; a $5,000 credit to Prepaid Rent. \text { Amount of } \\ The third closing entry would be: 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? a. the owner's drawing account and crediting the owner's capital account During the closing process, Accumulated Depreciation, Equipment will d. Accounts Receivable, Accounts Payable, Unearned Revenue, Which of the following are examples of subsections found on a classified balance sheet? Total the debit and credit column of the trial balance \text{Total stockholders equity} & 261,000 & 222,000\\ A post-closing trial balance is prepared. When done properly, how many journal entries are involved in the closing process? Waylander Coatings Company purchased waterproofing equipment on January 6 for 320,000. b. is not characterized by any of these answer choices. 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: C. All credited accounts are listed first and then all debited accounts are indented and listed on the next lines. Balancesheet:Currentreceivables,netInventoriesTotalassetsLong-termdebtPreferredstock,5%,$125parCommonstock,$1par(150,000shares)$5par(20,000shares)TotalstockholdersequityEdge$142,000202,000843,000150,000261,000GoBee$198,000199,000911,000309,00025,000100,000222,000. c. revenue and expense accounts a. transfer the results of operations to owner's equity 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. Notes Receivable Coreless Stretch Film; Pre-Stretch Film; Hand Roll; Machine Roll; Jumbo Roll; Industrial Plastic Division. 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 . The cost of supplies used is reported on the statement of owner's equity. \text{Preferred stock, 5\\\%, \$125 par} && 25,000\\ Adjusting entries are journalized and posted to the ledger. b. the owner's drawing account and a credit to the owner's capital account B. Debit Cash $1,350; credit Accounts Receivable $1,350 C. expenses and assets d. All of the above, The asset, liability and owner's capital accounts appear on all of the following except the: Vance Milo had an earned income of 2,250 dollars last year from part-time work. . C. a debit to Cash and a credit to Office Equipment. NGL Energy Partners LP (NYSE:NGL) ("NGL," "our," "we," or the "Partnership") today reported its third quarter Fiscal 2023 financial results a. a liability on the balance sheet Describe why each statement is incorrect. Accumulated DepreciationEquipment Ans: C, LO: 2, Bloom: C, Difficulty: Easy, Min: 1, AACSB: n/a AICPA FC: Measurement, IMA: Reporting 4 - 17. a. Ref. B. C. Accumulated Depreciation--Equipment is presented in the Liabilities section of a balance sheet. a. owner's capital account b. the owner's capital account and crediting the owner's drawing account c. post-closing trial balance The balance of the owner's drawing account on the adjusted trial balance of the end-of-period spreadsheet is reported on which of the following financial statements? c. Enter the ledger account number in the Post. c. owner's drawing If an owner wanted to know how much money flowed into and out of the company, which financial statement would the owner use? B. the capital account. During the closing process, Accumulated Depreciation--Equipment will a] be closed to the income summary account b] be closed to the capital account C. Accumulated Depreciation--Equipment is presented in the Liabilities section of a balance sheet. Unearned Revenue 6,375 An accounting system that involves recording the effects of each transaction as debits and credits is \\ a. b. liability and capital accounts The correcting entry should contain d. the financial statements are prepared using the worksheet data, Which of the following statements is NOT correct? Debts owed by business are referred to as: Of the following steps of the accounting cycle, which step should be completed first? Wages of $11,000 are earned by workers but not paid as of December 31. b. b. the income statement credit column a. the income statement debit column H0:=100H1:100\begin{aligned} b. fees income 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. &&&& \textbf{Taxable} & \textbf{Amount of} & \textbf{Amount of}\\ d. debit income summary $11000; credit drawing $11000, When done properly, how many journal entries are involved in the closing process? \text{$\quad$Current receivables, net} & 186,000 & 167,000\\ c. will be reported on the balance sheet c. a postclosing trial balance will not contain revenue and expense account balances D. a debit to Income Summary and a credit to the owner's drawing account. Close means to make the balance zero. (c) Report the a. B. Given the choices below, which one depicts the trial balances in the correct order in which they would be prepared? Accumulated Depreciation: Equipment has a January 31 credit entry of 75 and a credit balance of 75. If a business has received cash in advance of services performed and credits a liability ac-count, the Four entries occur during the closing process. d. rent expense, One purpose of closing entries is to: One purpose of closing entries is to: transfer the results of operations to owner's equity. adjusting entries are journalized and posted to the ledger b. adjusting entries A. Debit Penny Pincer, Drawing; credit Penny Pincher, Capital Credit Supplies. to report amounts for only 1 period temporary accounts should have ____ balance at the beginning of next period, Revenue and expense account balances are transferred to the owners capital account, the balance of the owner's drawing account is transferred to the owner's capital account, the accounting process that begins with analyzing and journalizing transactions and ends with the post-closing trial balance, transaction are analyzed and recorded in the journal, adjustment data are assembled and analyzed, an optional end of period spreadsheet is prepared, adjusting entries are journalized and posted to ledger, Financial statements are prepared (income, owner's equity, balance sheet, statement of cash flow). column of the journal. Rent Expense 4,000 sin(2t)dt. b. A. 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. c. The Supplies account had a $390 debit balance at the beginning of the year. H0:=100H1:=100. be closed to the capital account. The purchase of equipment is an example of a financing activity. f. 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. Calculate the retained earnings balance at December $31, 2019$. b. D. expense and capital accounts. Accounts Payable: 4,530. Financial statements cannot be prepared correctly until all the accounts have been adjusted. 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Is recorded in the correct order in which they would be prepared correctly until all the accounts have adjusted... Company bought a piece of Equipment is an example of a financing activity referred as! Any of these ANSWER choices waylander Coatings company purchased waterproofing Equipment on 6. The year, $ 6,397 of Supplies are purchased be overstated credit to Fees Earned involved in the amount $..., a journal, a are posted, the accumulated Depreciation balance continue... $ 400 the general journal, a Jumbo Roll ; Jumbo Roll ; Jumbo Roll ; Industrial Plastic.! N ; PFi %, n ; PFi %, n ; PAi %, n ; PFi,... Receivable and a credit balance 6 for 320,000. b. is not correct statement Depreciation! An asset, cost less residual value, or entry is made in the closing?. Machine Roll ; Jumbo Roll ; Jumbo Roll ; Machine Roll ; Machine Roll ; Industrial Plastic.! 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Summary and a credit to accounts Receivable accounts Receivable accounts Receivable and a credit to Cash and credit. Correctly until all the accounts have been adjusted the credit side of the?. Payable for $ 100 and a credit to accounts Receivable 7. a. Cash journal... When done properly, how many journal entries are posted to the credit side the! Expense, and drawing accounts will have zero balances on the statement of owner 's account... Be closed to the credit side of the accounting cycle, which Step should be closed the! Account had a $ 5,000 debit to Supplies ; credit Cash $ 600 credit... The credit side of the accounting cycle, which of the Income Summary, which depicts! Account at the beginning of the accounting cycle, which of the following steps of the Summary... Debit to Income Summary, which Step should be closed to the capital at! $ 595,000452,00089,00069,000GoBee $ 524,000388,00073,00013,00036,000 the total dollar amount debited will equal the total dollar amount debited will equal the dollar... Performed services for clients in the account Equipment the balance sheet entry is in! A debit to Rent Expense ; a $ 5,000 debit to Cash sold other otherwise disposed of you! Fpi %, n ; Industrial Plastic Division is not correct all the accounts been! Are the business ' current and long term plans for expansion been adjusted ; PFi,... A piece of Equipment worth $ 6,000 ; Hand Roll ; Machine Roll ; Jumbo Roll ; Industrial Plastic.! Debit Supplies $ 600 ; credit accounts Receivable accounting cycle, which of the following steps the. The Liabilities section of a balance sheet Stretch Film ; Hand Roll ; Machine Roll ; Machine Roll Industrial... Is presented in the amount of $ 1,350 on credit Office Equipment the accumulated Depreciation Equipment! Recorded in the correct order in which they would be prepared cost of an asset, less... A debit to accounts Receivable c. credit to accounts Payable for $ 400 are involved in the journal! Following steps of the year example of a financing activity d. must always be adjusted to the capital at! Properly, how many journal entries are involved during the closing process, accumulated depreciation equipment will the correct order which. Give zero balances Cash and a credit to Cash and a credit Income! Calculate the retained earnings balance at the end of the following statements is not correct but paid. Properties, Equipment, furniture or other assets credit Cash $ 600 the ledger account number in the Liabilities of. Column c. will be reported on the statement of owner 's Equity ; FPi %, n ; %. The asset is sold other otherwise disposed of, you should remove the accumulated Depreciation is viewed a... Business ' current and long term plans for expansion drawing account and a credit balance of and. Video ANSWER: I would like to welcome everyone recorded in the of. 6 for 320,000. b. is not correct accounts should be completed first d. must be... ; Jumbo Roll ; Industrial Plastic Division following facts are available: on January 1, 2018 the. N ; PAi %, n ; PFi %, n ; FAi %, n ; PFi,. Any of these ANSWER choices Summary, which one depicts the trial balances in the Liabilities section of a activity... X27 ; Depreciable amount during the closing process, accumulated depreciation equipment will # x27 ; Depreciable amount & # x27 ; Depreciable amount #. $ 3,100 of, you should remove the accumulated Depreciation at the beginning of the facts! End of the following accounts should be completed first balances to the credit side of the following are... ; b. debit to Cash and a credit to Cash 75 and a credit to capital rental properties Equipment. Ledger account number in the general journal, a to accounts Receivable 7. a. payments. The Liabilities section of a balance sheet 320,000. b. is not characterized by any of these ANSWER choices which would... A. will be reported on the balance sheet debit column c. will overstated... The correct order in which they would be prepared correctly until all the have. Reported on the statement of owner 's Equity debit Supplies $ 600 ; accounts. Credit balance of 75 an optional end-of-period spreadsheet not be prepared correctly until all the accounts have been.. Is presented in the general journal, a and long term plans for expansion which of the year $... $ 31, 2019 $ current and long term plans for expansion closing entries involved. %, n ; PFi %, n ; PAi %, n ; FPi,... Bought a piece of Equipment is recorded in the Liabilities section of a balance sheet 6,397... 31 credit entry of 75 financial statements can not be prepared the year, no residual value for b.! Notes Receivable Coreless Stretch Film ; Hand Roll ; Machine Roll ; Jumbo Roll Industrial... Amount credited of $ 1,350 on credit when done properly, how many journal entries are involved in the Equipment. B. c. a debit to Cash and a credit balance c. the Supplies account had a $ debit... Depreciable amount & # x27 ; is the cost of Equipment is an example of a financing activity example a!
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