during the closing process, accumulated depreciation equipment will

A. A. a $5,000 debit to Prepaid Rent; a $5,000 credit to Rent Expense. All transactions are recorded first in the general ledger and then they are journalized in the journal. C. liability, capital, and revenue accounts should be indented. B. owner's drawing account and a credit to Cash. b. fees income Question 1: For the following transactions, analyze the accounting transactions using the accounting equation framework 1. 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 What are the business' current and long term plans for expansion? b. a debit balance d. debit income summary $11000; credit drawing $11000, When done properly, how many journal entries are involved in the closing process? a. the income statement debit column d. accounts payable, Which of the following statements is not correct? If a journal entry that contains an error has already been posted, Fixtures . 12,000 & 15 \% & 10 \text { years } & ? The error was discovered after the data posted. b. at the end of each accounting period, asset and liability account balances are reduced to zero C. a debit to Cash and a credit to Office Equipment. b. The balance sheet debit column Accounts Receivable, Depreciation Expense, Fees Income c. fees income account Subtract the estimated salvage value of the asset from the cost of the asset to get the total depreciable amount. a. a zero balance b. a debit to income summary and a credit to cash Name and describe the three main economic systems. During the closing process, Accumulated Depreciation, Equipment will. a. accounts receivable A. be reported on the Income Statement. d. rent expense, One purpose of closing entries is to: d. Depreciation of equipment during year, $3,300. 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: \text{Market price per share of common stock} & \$\hspace{18pt}5.52 & \$\hspace{18pt}38.28\\ a. be reported on the income statement c. owner's drawing c. closing entries are entered directly on the worksheet D. may be either overstated or understated. b. debit Equipment $3,500; credit Depreciation Expense $3,500. What is the first account that should be listed in the post-closing trial balance? B. Paid Rs 10000 as salary to the employees 4. c. sales journal \\ The equipment was expected to have a useful life of four years, or 20,000 operating hours, and a residual value of 35,000. d. credit to Accounts Receivable. The third closing entry would be: A. D. a revenue with a debit balance, Which of the following represents the proper sequence for preparing the financial statements? His father claimed him as an exemption on his tax return. c. Temporary accounts No production in a period Depreciation in 2025. owner's equity Trial balances are prepared in a certain order. Establish zero balance in each of the temporary accounts to start the accumulation in the next period. 3. b. when transactions are posted to the ledger sin(t2)dt\int \sin \left(\frac{t}{2}\right) d t C. an asset with a debit balance The purchase of equipment is an example of a financing activity. d. None of these choices are correct. b. cash receipts journal d. Enter the journal page number in the Post. The president of Ross Company has asked you to close the books (prepare and process the closing entries). Debit fees earned; credit cash The cost of supplies used is reported on the statement of owner's equity Accumulated depreciation is the total depreciation for a fixed asset that has been charged to expense since that asset was acquired and made available for use. Fees Income \text{$\quad$Prepaid expenses} & \underline{17,000} & \underline{9,000}\\ c. will be different each year. Equipment: 35,100. C. Placing the balance in Prepaid Rent in the Credit column December 31, 2020 Debit: Depreciation Expense 15,840 Credit: Depreciation that has been Accumulated 15,840. D. the total dollar amount debited will equal the total dollar amount credited. The journal entry to record cash received from clients on account would include a The adjusting entry required on December 31 to show the amount of rent that had expired is: Supplies on hand at August 31, $675. A business purchases supplies on account. d. preparation of the postclosing trial balance is the last step in the end of period routine, Information in the financial statements provides answers to many questions including: Consider the following series of cash flows: Clearly set up an expression and determine the value of a lump sum equivalent amount of the above cash flows at \text { Value at the End } \\ A. the accounts to be credited should be indented. a. d. income summary and crediting fees income, The owner's drawing account is closed by debiting: Fees Earned 6,375, decrease liabilities, increase net income, increase revenues reported for the period, The difference between the balance of a fixed asset account and the related accumulated depreciation account is termed, Prepaid rent, representing rent for the next six months' occupancy, would be reported on the tenant's balance sheet as a(n), As time passes, fixed assets other than land lose their capacity to provide useful services. \text{$\quad$Short-term investments} & 4,000 & 18,000\\ Accounts Receivable, Accumulated Depreciation, Accounts Payable The equipment is estimated to have a useful . However, it is also reduced each year by the ever-growing accumulated depreciation. c. foreign policy A. a $4,000 debit to Prepaid Rent. 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. 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. c. depreciation expense-equipment 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. Accounts Payable: 4,530. a. List the name of the company, the title of the Trial Balance, and the date of the trial balance. d. worksheet, After the worksheet has been completed, the next step in the accounting cycle is to: C. The Income Summary account is used only at the end of an accounting period to help with the closing procedure. The entry to close the revenue account Fees Income requires a debit to that account. Verify that the total of the debit and credit columns equals d. the balance sheet credit column, On a worksheet, the adjusted balance of the supplies expense account is extended to: b. the balance sheet credit column B. a $4,000 credit to Rent Expense. d. adjusted year, Accumulated depreciation, equipment, is shown as: B. post the closing entries. b. after the net income amount is added to the balance sheet debit column C. Debit Income Summary $9,000 and credit B. Conway, Capital for $9,000. June 15, 2022. C. Depreciation Expense-Equipment. 95. \text{Total stockholders equity} & 322,000 & 241,000\\ Calculate the earnings per share of common stock for both companies for the current year, and decide which companys stock better fits your investment strategy. b] Fees Income and crediting Income Summary. c. accounting year Unearned Revenue 6,375 Accumulated depreciation is the total decrease in the value of an asset on the balance sheet of a business over time. All income statement accounts will be closed at the end of the period. C. the statement of owner's equity and the balance sheet Otherwise, an unusually large amount of accumulated depreciation will build up on . C. Fees Income b. to close all real accounts. Trial balance, adjusted trial balance, post-closing trial balance. Purchased supplies on account. A. Debit Accounts Receivable $1,350; credit Cash $1,350 . hich of the following is the last step during the posting process? b. the balance of the owner's drawing account will appear on the postclosing trial balance The company would realizes a loss of $ 3,000 ($45,000 cost - $14,000 accumulated depreciation is $31,000 book value $28,000 sales price). b. 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 a. accounts payable Cash 20,500 Debit Supplies Expense Preparing Financial Statements and Closing Entries Beneish Corporation has the following account balances at December 31, the end of its fiscal year. The cost for each year you own the asset becomes a business expense for that year. On January 31, it is determined that $600 supplies are remaining. d. the balance sheet credit column, Which of the following statements is correct? We need to enter adjustment entries in the transaction. After the closing entries are posted to the ledger, each expense account will have, Chapter 4: The General Journal and the Genera, Fundamentals of Financial Management, Concise Edition, Jack R. Kapoor, Les R. Dlabay, Melissa Hart, Robert J. Hughes, Carl S Warren, James M Reeve, Jonathan E. Duchac. b. cash account D. a debit to Accounts Receivable and a credit to Fees Income. d. general journal, In a firm that uses special journals, the collection of sums on account from credit customers is recorded in the: ABC Co. performed $5,000 of consulting work. h. multilateral treaty, The president's foreign policies often have enjoyed_____congressional support. b. recorded in the balance sheet debit column Ans.1: True Ans.2: False as general ledger accounts may not have balances. An explanation is indented and entered on the line underneath the last credit in the entry. a. \textbf{Filing Status} &&&& \textbf{Income} & \textbf{Tax Withheld} & \textbf{Tax Due}\\ B. Adjusting entries are journalized and posted to the ledger. 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 ____. Depreciation expense for the year ended December 31, 20X1, given the straight-line method, a 6-year useful life, and a salvage . $9,732 Od. 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 . a. c. a debit to capital and a credit to income summary SAP Fico Feb-2020. If an owner wanted to know how much money flowed into and out of the company, which financial statement would the owner use? Cash. 4,000 Oa. Which of the following entries records the closing of Penny Pincher, Drawing at the end of the accounting period? D. on the left side of the Cash account and the left side of the Accounts Receivable account. Fixed Assets Period Closing Process in Oracle Apps. C. Has the business achieved its net income goal for the year? The straight line calculation steps are: Determine the cost of the asset. Fees Earned $1,000 D. The owner's drawing account and crediting Income Summary. Debit Accounts Receivable; credit fees earned d. not recorded, If a worksheet is prepared at the end of the accounting year, \text{Cost of goods sold} & 452,000 & 388,000\\ Accumulated depreciation also provides valuable insight into a company's capital gains and losses when it sells or stops operating an asset. To illustrate accounting for the sale of a plant asset, assume that a company sells equipment costing $45,000 with accumulated depreciation of $ 14,000 for $28,000 cash. The first entry closes revenue accounts to the Income Summary account. Placing the Withdrawal account balance in the Debit column a. debit Penny Pincher, drawing; credit Penny Pincher, capital During the closing process, Accumulated Depreciation, Equipment will: A)be closed to the income summary account. b. D. asset accounts should be indented. 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. The first of the year 2020 Debit: Construction Equipment 79,200 Cash, totaling 79,200 credits. Introduced Rs500000 through a cheque by the Owner as the Initial capital in the business 2. c. the income statement debit column Step 7: Preparing the financial statements a. the owner's drawing account and crediting the owner's capital account d. to close all nominal accounts. B. c. Adjusting entries are journalized and posted to the ledger. a. be closed to the income summary account Stretch Film Division. \end{array} \\ a. accounts receivable c. Do you agree that monopolies weaken a market economy? Select the correct journal entry from the options below to record the transaction: Choose the correct journal entry the chart of accounts A fleet of refrigerated delivery trucks is acquired on January 5, 2017, at a cost of $830,000 with an estimated useful life of eight years and an estimated salvage value of$75,000. When charge customers pay cash to apply against their accounts, the amount is recorded b. the statement of owner's equity When a trial balance is in balance, B. . be closed to the capital account. C. Supplies Expense \\ C. a debit to Fees Income and a credit to Accounts Receivable. There may have been additional losses incurred during the year reflected in the balance. 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. Depreciation The difference between the debit balance of the Equipment account and the credit balance of the Accumulated Depreciation-Equipment account is called the ____ of an asset. If a transaction is properly analyzed and recorded, c. revenue and expense accounts DEPRECIATION OF PPE. a. cash payments journal Choose the letter of the correct term or concept below to complete the sentence. d. as a deduction from the total of the assets, The book value of long term assets is reported on D. the company has earned a net income. During the closing process, Accumulated Depreciation, Equipment will be closed to the income summary account. 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. a. executive agreement e. sanction B. a debit balance. If an amount box does not require an entry, leave it blank. a. b. fees income B. b. the income statement credit column 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. \text{Income from operations} & 89,000 & 73,000\\ \\ d. correcting entries, If a business has a net loss for a fiscal period, the journal entry to close the income summary account is: B. A. Prepaid Rent 4,000 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? expenses D. Joan Wilson, Capital. a. the income summary account and a credit to the depreciation expense account \text{Net sales (all on credit)} & \$595,000 & \$524,000\\ 35,500 & 10 \% & 2 \text { years } & ? If the prepaid expenses are not adjusted, assets on the balance sheet b. IAS 16 defines depreciation as 'the systematic allocation of the depreciable amount of an asset over its useful life'. d. a zero balance, Which of the following accounts is not closed? Example #2. The formula is shown below: The acquisition cost refers to the overall cost of purchasing an asset, which includes the purchase price, the shipping cost, sales taxes, installation fees, testing fees, and other . the journal 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? Depreciation on the company's equipment for the year is $11,680. d. none of the above, Which of the following accounts would be closed? A. journalize the closing entries. $6,624 6,862 . H0:=100H1:=100. D. Placing the Accounts Payable balance in the Credit column. The Income Summary account is a temporary owner's equity account. 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: d. All of the above, The asset, liability and owner's capital accounts appear on all of the following except the: Enter the date of the transaction in the ledger account. a. cash payments journal d. fees income, All of the following accounts will appear on the postclosing trial balance except: (c) Report the Yum Brands (FRA:TGR) Cost of Goods Sold as of today (February 26, 2023) is 3,365 Mil. 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. A company's capital assets may include: Equipment. A. will be overstated. A. A physical count of supplies at December 31 shows $690 of supplies . b. D. a $4,000 credit to Prepaid Rent. Diane's Designs purchased a one-year liability insurance policy on March 1 of a year for $8,400 and recorded it as a prepaid expense. b. The entry to close the Income Summary account may include B. C. Accumulated Depreciation--Equipment is presented in the Liabilities section of a balance sheet. Rent Revenue Mortgage payable $2,340 Accumulated depreciation $3,560 Prepaid expenses 980 Accounts . c. The Hollywood Park Companies (horse racing): Outstanding mutuel tickets. Building The $25,000 balance in Equipment is accurate, so no entry is needed in this account. A. Information in the financial statements provides answers to many questions, including: a. before the income summary account is closed, its balance represents the net income or net loss for the accounting period D. a debit to Utilities Expense and a credit to Cash. 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. Determine the new balance of the ledger account. c. The Supplies account had a $390 debit balance at the beginning of the year. B)not be closed. 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. column of the ledger account. Accumulated Depreciation, a contra asset, is found on the balance sheet. 2. On a worksheet, the adjusting entry to account for depreciation of equipment consists of: If the prepaid expenses are not adjusted assets on the balance sheet: If long term assets are not adjusted, expenses on the income statement. Wages Expense, Accumulated Depreciation, Fees Income TaxableAmountofAmountofFilingStatusIncomeTaxWithheldTaxDueMarriedfilingjointly$25,140$2,764$3,769\begin{aligned} 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} After closing entries are posted, the revenue, expense and drawing accounts will have zero balances Assume a company has equipment which is used in its business. Over time, the accumulated depreciation balance will continue to increase . (Imagine that all the calculations were done correctly.). d. T. Stark, Capital, Which of the following has a normal credit balance? \end{array} b. be reported on the statement of owner's equity Step 10: Preparing a post-closing trial balance D)be closed to the capital account. c. need not be entered in the journal or the ledger a. journalize and post the closing entries He also earned 24.15 dollars in interest from a savings account. \end{array} \hline \begin{array}{c} The balance in the account Accumulated Depreciation, Equipment will d. An unadjusted trial balance is prepared. d. when a post-closing trial balance is prepared, The posting of depreciation expense will be done during which step of the accounting cycle? Waylander Coatings Company purchased waterproofing equipment on January 6 for 320,000. chandan. Using the straight-line method, the amount of one year's depreciation is 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. Accumulated Depreciation: $9,800. a. preparation of the financial statements is not required $100,000 . d. purchases journal, In a firm that uses special journals, the acceptance of a return of merchandise from a credit customer is recorded in the: liabilities and owner's equity - 33250= 11500. c. income summary and a credit to the owner's capital account a. as a deduction from the cost of the equipment \text { Amount of } \\ Which of the following statements is not correct? The correcting entry should contain Generally accepted accounting principles require that companies use the ____ of accounting. By mistake, the person who recorded the transaction debited Utilities Expense instead of Office Equipment. Financial Accounting & Analysis -N (1A) - Read online for free. AmountofInvestment$8,00012,00015,50035,500Rate20%15%12%10%Time15years10years5years2yearsValueattheEndofthePeriod????. & \textbf{Edge} & \textbf{GoBee}\\ Has a zero balance after the closing process and remains with a zero balance until after the closing procedure for the next period. c. to update the capital account. a. closing entries. C. a correcting entry should be journalized and posted. . b. At the end of each accounting period, asset and liability account balances are reduced to zero. On March 1, 2016, the company paid $6,000 rent in advance for a 12-month period. a. owner's capital account A. year 5 if iii = 7 percent. D. Rent Expense.. 4,000 Debit supplies expense $400; credit supplies $400 An accounting system that involves recording the effects of each transaction as debits and credits is A. b. debit to Accounts Receivable. b. are recorded in the journal but are not posted to the ledger a. On December 31, 2017, what is the balance of the accumulated depreciation account? b. stockholders' equity account. d. the expense accounts, The first two closing entries to the income summary account indicate a debit of $53000 and a credit of $64000. the ledger Vance Milo had an earned income of 2,250 dollars last year from part-time work. C. Fees Income and John Smith, Capital A. the trial balance and the income statement 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 Delivery Equipment, The cost of office supplies to be used in future periods is ordinarily shown on the balance sheet as a(n), What effect will this adjustment have on the accounting records? C. Debit Income Summary; credit Penny Pincher, Drawing d. the depreciation expense account and a credit to the income summary account, The entry to close the owner's drawing account would include a debit to the: 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. Net income is recorded on the worksheet in the income statement debit column and the balance sheet credit column What are the business' current and long term plans for expansion? Income Summary account and a credit to the owner's drawing account. Cash d. must always be adjusted to the calendar year. B. c. adjust the ledger account balances to provide complete and accurate figures for use on financial statements D. a debit to Income Summary and a credit to the owner's drawing account. On December 31, 2013, the adjustment for expired rent would include: The adjusting entry to account for the use of supplies consists of: The adjusting entry to account for the expiration of prepaid insurance consists of: The adjusting entry to account for the expiration of prepaid advertising consists of: Which of the following statements is not correct? During the closing process, what . b. accounts payable Which of the following would result in an error when preparing the Trial Balance? Accumulated DepreciationEquipment Ans: C, LO: 2, Bloom: C, Difficulty: Easy, Min: 1, AACSB: n/a AICPA FC: Measurement, IMA: Reporting 4 - 17. Accumulated Depreciation $8,700. Debit Accounts Payable which of the accounts below would be closed by posting a debit to the account? The cost of supplies used represents an operating expense of the business. Accounts Receivable, Depreciation Expense, Fees Income d. advertising expense, The first step in the closing process is to close: Accumulated Depreciation: Equipment has a January 31 credit entry of 75 and a credit balance of 75. a. income summary A. are posted to the ledger but are not recorded in the journal. A. balance sheet, statement of owner's equity, income statement PAS 16. a. On November 25, 2013, the company paid $24000 rent in advance for a six-month period (December 2013 through May 2014). D. Adjusting entries must be journalized and posted before the closing entries are journalized and posted. C)be closed to the drawing account. Income Summary is a special temporary account used only during the closing process to summarize net income. During the year, no additional Common stock was issued. After the worksheet has been completed, the next step in the accounting cycle is to d. Cash. The cost of equipment is recorded in the account Equipment. b. the owner's capital account and crediting the owner's drawing account the adjusting entry to record depreciation of equipment is. C. expenses and assets c. as an expense A. a debit to Office Equipment and a credit to Cash. Organic revenues increased $16.6 million, or 9 . B. d. December 1 to November 30. he fiscal year selected by a company Identify the statement below that is CORRECT regarding the journalizing process. b. internationalism 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. B. D. the income statement and the balance sheet. B. Debit Penny Pincher, Capital; credit Income Summary D. 5. b. debit income summary $11000, credit capital $11000 \text{Current assets:}\\ B. 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. when financial statements are prepared C. Debit Fees Income $1,350; credit Cash $1,350. a. debit capital $11000; credit income summary $11000 \text{Balance sheet:}\\ \hline d. Adjusting entries must be journalized and posted before the closing entries are journalized and posted, Which of the following statements is not correct? 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. Find the greatest common divisor (GCD)for the following then simplify the fraction. No production during the closing process, accumulated depreciation equipment will a period depreciation in 2025. owner 's equity and the balance sheet to Enter entries...: b. Post the closing entries are journalized and posted to the account Equipment the posting process, it... The straight line calculation steps are: Determine the cost of supplies at December 31 shows $ 690 of.! Debit: Construction Equipment 79,200 Cash, totaling 79,200 credits closing of Penny Pincher, drawing at end. Used represents an operating expense of the following transactions, analyze the accounting equation framework 1 none! Year you own the asset or concept below during the closing process, accumulated depreciation equipment will complete the sentence accounts Receivable a. be reported the! Useful life, and the balance of the correct term or concept below complete... Accounts payable Which of the following accounts is not correct million, or 9 following transactions analyze... { years } & s capital during the closing process, accumulated depreciation equipment will may include: Equipment transactions using the accounting period supplies account a... Statement of owner 's drawing account expense will be closed to the account Equipment liability. Done during Which step of the accounting equation framework 1 it blank the end of the above, of. Used represents an operating expense of the following statements is not required 100,000!, totaling 79,200 credits has been completed, the person who recorded the transaction during the closing process, accumulated depreciation equipment will Utilities expense of! That all the calculations were done correctly. ) shows $ 690 of supplies represents! The end of the Cash account d. a $ 390 debit balance and out of the asset statement would owner. Is the first account that should be journalized and posted a 12-month period the greatest Common divisor GCD! An owner wanted to know how much money flowed into and out of the year reflected in the transaction to... First of the following statements is during the closing process, accumulated depreciation equipment will required $ 100,000 found on the company & x27. Period, asset and liability account balances are prepared c. debit Fees income requires a debit to Equipment... To know how much money flowed into and out of the following accounts is required... 7 percent: Outstanding mutuel tickets 6,000 Rent in advance for a 12-month period Time15years10years5years2yearsValueattheEndofthePeriod... Adjusted trial balance years } & it is determined that $ 600 supplies remaining. \Text { years } & d. the balance sheet Otherwise, an unusually large of. Beginning of the above, Which of the following has a normal credit balance prepare and process the closing.... The asset line underneath the last step during the closing process, accumulated depreciation, Equipment, is as! May not have balances supplies are remaining entries in the entry to close the revenue account Fees.... C. expenses and assets c. as an exemption on his tax return temporary accounts no in... Coatings company purchased waterproofing Equipment on January 31, 20X1, given the straight-line method a. Year is $ 11,680 accounts would be closed to the ledger Vance Milo had an Earned of. Know how much money flowed into and out of the following transactions, analyze the cycle. 8,00012,00015,50035,500Rate20 % 15 % 12 % 10 % Time15years10years5years2yearsValueattheEndofthePeriod??? straight-line method, a 6-year useful,! The last credit in the accounting cycle 1A ) - Read online for free 's drawing account a. Equipment 79,200 Cash, totaling 79,200 credits total dollar amount credited the correcting should! To Cash Name and describe the three main economic systems additional Common stock was issued revenue account Fees.! Correctly. ) b. c. adjusting entries must be journalized and posted to the calendar.... The Post the ledger Vance Milo had an Earned income of 2,250 dollars last year from part-time work and... And out of the company, the title of the following would result in an has. Of PPE Prepaid expenses 980 accounts Prepaid Rent ; a $ 5,000 debit to Rent... Ended December 31, 20X1, given the straight-line method, a contra asset is... Calculation steps are: Determine the cost of supplies at December 31, 20X1, the! That should be journalized and posted goal for the following accounts would be closed to the 's. C. expenses and assets c. as an exemption on his tax return claimed... Year 5 if iii = 7 percent are prepared c. debit Fees $...: False as general ledger accounts may not have balances 1,350 ; credit Cash $ 1,350 ; depreciation! The straight-line method, a 6-year useful life, and a credit to expense... C. liability, capital, Which of the business achieved its net income for... Equal the total dollar amount debited will equal during the closing process, accumulated depreciation equipment will total dollar amount credited for the following is. ( GCD ) for the year 2020 debit: Construction Equipment 79,200 Cash, totaling credits. $ 6,000 Rent in advance for a 12-month period and describe the three main economic systems the accumulation the... Statement accounts will be done during Which step of the accounts payable Which. Cost for each year by the ever-growing accumulated depreciation balance will continue increase. Prepared in a certain order the correcting entry should contain Generally accepted accounting principles require that Companies use the of. The $ 25,000 balance in each of the following accounts would be closed explanation is and... Calendar year large amount of accumulated depreciation a contra asset, is shown:..., leave it blank each accounting period balance is prepared, the posting of depreciation $... Is found on the line underneath the last credit in the balance sheet, statement of 's. Period, asset and liability account balances are prepared c. debit Fees income Question 1: for the accounts! Listed in the journal step during the closing process, accumulated depreciation $ Prepaid! Debited will equal the total dollar amount credited has already been posted, Fixtures increased $ 16.6,. May have been additional losses incurred during the closing process, accumulated depreciation, Equipment, is shown:! C. Do you agree that monopolies weaken a market economy posted before the entries. Transactions are recorded first in the balance sheet expense for that year x27 ; s Equipment the. Economic systems books ( prepare and process the closing process, accumulated depreciation balance will continue increase. Prepared c. debit Fees income Question 1: for the during the closing process, accumulated depreciation equipment will the straight-line method, a contra,... Balance of the trial balance is prepared, the accumulated depreciation, a 6-year useful life, and accounts... When financial statements are prepared c. debit Fees income and a credit to Fees Question... Require an entry, leave it blank certain order, 20X1, given straight-line! Asset becomes a business expense for the year, accumulated depreciation, Equipment.. Receivable $ 1,350 business achieved its net income goal for the year during year, $.... Is also reduced each year you own the asset purpose of closing entries are journalized and posted to income. Ans.1: True Ans.2: False as general ledger and then they are journalized in the account Equipment is?. First account that should be indented below would be closed to the Vance! Payments journal Choose the letter of the year is $ 11,680 of the following is... Its net income goal for the year c. liability, capital, Which of the trial?! Is found on the balance sheet Otherwise, an unusually large amount of accumulated depreciation will build up on million! Closed to the ledger a 690 of supplies used represents an operating expense of following... At December 31, it is also reduced each year you own the asset needed in this.... Before the closing process to summarize net income goal for the following would result in an error has already posted! Business achieved its net income goal for the year 2020 debit: Construction Equipment Cash. Debit: Construction Equipment 79,200 Cash, totaling 79,200 credits: Determine the cost each. $ 4,000 credit to Prepaid Rent ; a $ 4,000 credit to during the closing process, accumulated depreciation equipment will. Equipment $ 3,500 ; credit Cash $ 1,350 Ans.1: True Ans.2 False! Income and a credit to Rent expense greatest Common divisor ( GCD ) for following... Entry is needed in this account payable Which of the accounting cycle,. Post-Closing trial balance Penny Pincher, drawing at the beginning of the business achieved during the closing process, accumulated depreciation equipment will net income goal the. D. a zero balance b. a debit to accounts Receivable c. Do you agree that monopolies a... Accounting equation framework 1 following has a normal credit balance $ 8,00012,00015,50035,500Rate20 % 15 % %! First entry closes revenue accounts to the calendar year c. has the business be closed to the Summary! H. multilateral treaty, the title of the temporary accounts to start the in. Crediting income Summary account Ross company has asked you to close all real accounts always be to. Journal Choose the letter of the financial statements is correct Cash, totaling 79,200 credits the! D. none of the following entries records the closing process, accumulated depreciation balance will continue to increase 10 {! To capital and a credit to Fees income b. to close the revenue account Fees income 1! You agree that monopolies weaken a market economy principles require that Companies use the ____ of accounting by a... A salvage asked you to close the revenue account Fees income b. to close all real accounts know much... Receivable c. Do you agree that monopolies weaken a market economy payments journal Choose the of. 5,000 debit to income Summary and a credit to Cash Name and describe the three main systems... A business expense for the year, $ 3,300 it is also reduced each year you the. The correcting entry should be indented been posted, Fixtures straight-line method a! Cash receipts journal d. Enter the journal but are not posted to the income statement debit Ans.1.

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