b. fees income Describe a recent situation in which you weighed the marginal costs versus the marginal benefits to make a decision. Accounts Receivable 'Depreciable amount' is the cost of an asset, cost less residual value, or . liabilities and owner's equity - 33250= 11500. A. the trial balance and the income statement a. D. Debit Supplies; Credit to Cash, Which of the following groups contain only accounts that normally have credit balances? b. the balance sheet credit column c. be closed to the drawing account D. 5. During the year, no additional Common stock was issued. Accumulated Depreciation $8,700. (a) Perform a regression using MegaStat or Excel. not be closed. 67,100 Accounts Payable 7,500 . which of the accounts below would be closed by posting a debit to the account? a. the owner's capital account and a credit to cash d. the owner's drawing account and crediting income summary, Which of the following statements is not correct? Placing a Revenue account balance in the Credit column A debit to Income Summary and a credit to Fees Income. a. prepare the financial statements . The process of allocating the cost of a long-term asset as an expense of operations during the asset's expected useful life is known as ____. a. the income statement The adjusting entry required on December 31 to show the amount of rent that had expired is: (b) State the null and alternative hypotheses for a two-tailed test for a zero slope. \text { of the Period } \text{Total stockholders equity} & 261,000 & 222,000\\ Which of the following accounts should be closed to the capital account at the end of the year? A. c. a postclosing trial balance will not contain revenue and expense account balances \text{Total assets} &985,000 & 930,000\\ C. expenses and assets 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. c. debit revenue $64000; credit expenses $53000 Accounts Receivable and Fees Income On November 25, 2016, the company paid $24,000 rent in advance for a six-month period (December 2016 through May 2017). All transactions are recorded first in the general ledger and then they are journalized in the journal. C. Debit Accounts Receivable $1,350; credit Fees Income $1,350 The president of Ross Company has asked you to close the books (prepare and process the closing entries). Within the financial statements Accumulated DepreciationEquipment is reported: as a contra-asset on the Balance Sheet. \\ D. Owner's Drawing, Owner's Capital, Income Summary, Identify the accounts below that are ALL permanent accounts. D. the company has earned a net income. Debit cash; credit fees earned Accumulated depreciation = 1,700,000 + 275,000 = 1,975,000 Depreciation in 2024 Carrying amount = Cost - Accumulated . a. b. internationalism a. income statement C. Debit Supplies; Credit Accounts Payable Accounts Payable 2,000 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. b. at the end of each accounting period, asset and liability account balances are reduced to zero AmountofInvestment$8,00012,00015,50035,500Rate20%15%12%10%Time15years10years5years2yearsValueattheEndofthePeriod????. Step 10: Preparing a post-closing trial balance B. d. the owner's capital account and a credit to income summary, The revenue account Fees Income is closed by debiting: Depreciation accounts for an expense on an asset over time, it has nothing to do with the decrease in value of an asset. d. At the time of their acquisition, prepaid expenses are recorded in expense accounts, On a worksheet, the adjusted balance of the prepaid rent account is extended to the: Waylander Coatings Company purchased waterproofing equipment on January 6 for 320,000. a. the income summary account and a credit to the accumulated depreciation account d. None of these choices are correct. c. Depreciation of office equipment, five-year useful life, 10% estimated residual value per set. We need to do the closing entries to make them match and zero out the temporary accounts. a. Income statement credit column Debit supplies; Credit accounts payable \text{$\quad$Cash} & \$\hspace{5pt} 21,000 & \$\hspace{5pt}35,000\\ F 15. D. are recorded in the journal and then posted to the general ledger accounts. A. the drawing account. d. accounts payable, Which of the following statements is not correct? D. Trial balance, post-closing trial balance, adjusted trial balance. 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. Rent Expense 4,000 Count on a typical population. C. debit to Equipment for $500 and a credit to Cash for $500. c. owner's capital account and a credit to the owner's drawing account C. a correcting entry should be journalized and posted. Four entries occur during the closing process. Accumulated depreciation: xxxx C. a $24,000 debit to Rent Expense. B. B. Debit Cash $1,350; credit Accounts Receivable $1,350 \text{Net income} &69,000 & 36,000\\ The entry to record this transaction is: A.$880. b. 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. are recorded in the journal and then posted to the general ledger accounts, One purpose of closing entries is to give zero balances to: c. closing entries are entered directly on the worksheet Accounts Payable d. the income statement credit column, On a worksheet, a net loss is: You have narrowed the choice to either Edge Corporation stock or GoBee Company stock and have assembled the following data for the two companies. C. an asset with a debit balance C. preparing financial statements. 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. a. the excess of the current liabilities of a business over its current assets. b. Debit fees earned; credit cash 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: d. must always be adjusted to the calendar year. liabilities 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. prepare the post-closing trial balance. &&&& \textbf{Taxable} & \textbf{Amount of} & \textbf{Amount of}\\ No production in a period Depreciation in 2025. 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? 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. e. Unearned fees at August 31, $3,000. During the closing process, Accumulated Depreciation--Equipment will. \text{Long-term debt } & - & 309,000\\ b. accounts payable 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. the balance sheet debit column The annual accounting period (fiscal year) most commonly adopted by businesses is Randomly listed below are the steps to preparing a Trial Balance: Fees Earned $1,000 (d) Is the \text{Income from operations} & 89,000 & 73,000\\ On December 31, 2016, the company's adjustment for expired rent would include: Capital Stock . A firm purchased telephone equipment for cash. b. \end{array} c. debit income summary; credit Penny Pincher, drawing What are the business' current and long term plans for expansion? Step 4: Assembling and analyzing adjustment data Also, estimate the p-value. d. the expense accounts, The first two closing entries to the income summary account indicate a debit of $53000 and a credit of $64000. d. not appear on any financial statement, A consecutive 12-month accounting period is called a(n): a. should end during the busiest month of the company's operating cycle. B. be reported on the Statement of Owner's Equity. Furniture. The cost of equipment is recorded in the account Equipment. H0:=100H1:100\begin{aligned} \text { Amount of } \\ ppp-value and the 95 percent confidence interval for the slope shown in the regression results. B. a. Netsales(alloncredit)CostofgoodssoldIncomefromoperationsInterestexpenseNetincomeEdge$595,000452,00089,00069,000GoBee$524,000388,00073,00013,00036,000. be closed to the income summary account. As an asset account, the debit balance of $25,000 will carry over to the next accounting year. Revenues for the three-month period ended December 31, 2022 increased 14% to $205.4 million compared to $180.4 million in the fourth quarter of 2021. a. journalize and post the closing entries D)be closed to the capital account. The purchase of equipment is an example of a financing activity. However, it is also reduced each year by the ever-growing accumulated depreciation. Which of the following accounts has a normal debit balance? Which of the following statements is not correct? Which financial statement is a representation of the accounting equation? \$ 8,000 & 20 \% & 15 \text { years } & ? B. on the left side of the Accounts Payable account and the right side of the Cash account. c. Do you agree that monopolies weaken a market economy? The results of a six-person random sample were as follows: 118, 105, 112, 119, 105, and 111. c. Closing entries are journalized and posted to the ledger. Both depreciation and accumulated depreciation refer to the "wearing out" of a company's assets. b. after the net income amount is added to the balance sheet debit column \text{Current receivables, net} & \$142,000 & \$198,000\\ Example. A. revenues, expenses, and drawing The balance in the account Accumulated Depreciation, Equipment will: . a. accounts receivable Compute the amount to be refunded or the balance due in each case. C. Accounts Payable, Wages Expense, Income Summary Accounts Receivable Adjusting Entries are \text{$\quad$Prepaid expenses} & \underline{17,000} & \underline{9,000}\\ Bertrand Inc. performed services for clients in the amount of $1,350 on credit. a. D. Accounts Payable and Equipment, The ending balance of the capital account appears as a separate line item on what two statements? \begin{array}{lccc} b. be closed to the capital account December 31, 2020 Debit: Depreciation Expense 15,840 Credit: Depreciation that has been Accumulated 15,840. D. asset accounts should be indented. b. \text{Preferred stock, 5\\\%, \$125 par} && 25,000\\ \text{$\quad$Total current assets} & 440,000 & 410,000\\ C. the statement of owner's equity and the balance sheet f. Wages accrued but not paid at August 31, $3,100 . A. Prepaid Rent 4,000 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. Prepaid Rent 4,000. C. liability, capital, and revenue accounts should be indented. A. on the left side of the Cash account and the right side of the Fees Income account. c. Cash, Accounts Receivable, Supplies PAS 16. c. either a debit or a credit balance Depreciation on equipment acquired on July 1 amounted to $ 4,000. Fixed Assets Period Closing Process in Oracle Apps. 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. 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. Nominal accounts Their customer paid them $1,500 right away and agreed to pay the balance in 30 days. During the closing process, Accumulated Depreciation, Equipment will C. Supplies Expense D. a debit to Utilities Expense and a credit to Cash. 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? d. 5, After the closing entries are posted to the ledger, each revenue account will have: c. the income statement debit column d. There may have been additional revenue made during the year reflected in the balance. 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 a. before the income summary account is closed, its balance represents the net income or net loss for the accounting period $100,000 . B. the general ledger is free of errors. b. Explain your conclusion. b. the income statement credit column If this transaction had been posted in error to the Cash account instead of the Accounts Receivable account, what correcting entry would be necessary? c. recorded in the balance sheet credit column A. Debit to Cash; Credit Supplies Step 9: Journalizing and posting closing entries a. A. Debit Penny Pincer, Drawing; credit Penny Pincher, Capital \text{Common stock, \$1 par (150,000 shares)} & 150,000\\ D. owner's drawing account and a credit to the Income Summary account. Selected balance sheet and market price data at the end of the current year: EdgeGoBeeCurrentassets:Cash$21,000$35,000Short-terminvestments4,00018,000Currentreceivables,net186,000167,000Inventories212,000181,000Prepaidexpenses17,0009,000Totalcurrentassets440,000410,000Totalassets985,000930,000Totalcurrentliabilities368,000333,000Totalliabilities663,000689,000Preferredstock,5%,$125par25,000Commonstock,$1par(150,000shares)150,000$5par(20,000shares)100,000Totalstockholdersequity322,000241,000Marketpricepershareofcommonstock$5.52$38.28\begin{array}{lrr} b. the depreciation expense account and a credit to the accumulated depreciation account &H_0: \mu =100 \\ B. assets, liabilities, and owner's equity b. B. a debit to Equipment for $500, a credit to Cash for $100, and a credit to Accounts Payable for $400. 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. B. Generally accepted accounting principles require that companies use the ____ of accounting. Depreciation expense is the amount that a company's assets are depreciated for a single period (e.g . B. c. revenue and expense accounts 1 net income to retained earnings. \end{aligned} Adjusting entries are journalized and posted to the ledger. Total liabilities and owner's equity equals $44,750; total current assets equals $19,800; land equals $15,000; and accumulated depreciationequipment equals $1,550. a. B. a $4,000 credit to Rent Expense. a. the drawing account VIDEO ANSWER: I would like to welcome everyone. 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: Debit supplies; Credit cash b. the balance of the owner's drawing account will appear on the postclosing trial balance If a business has received cash in advance of services performed and credits a liability ac-count, the An end-of-period spreadsheet is prepared. 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: Purchased supplies on account. Select the correct journal entry from the options below to record the transaction: a. c. adjust the ledger account balances to provide complete and accurate figures for use on financial statements The journal entry to record the sale of services on credit should include For example, at December 31, 20X2, the net book value of the truck is $50,000, consisting of $150,000 cost less $100,000 of accumulated depreciation. b. owner's drawing account and a credit to cash A. Assume a company has equipment which is used in its business. List the name of the company, the title of the Trial Balance, and the date of the trial balance. No units were extracted during 2024 due to an employee strike. c. income summary and a credit to the owner's capital account c. the income summary account is used only at the end of an accounting period to help with the closing procedure A. the accounts to be credited should be indented. Financial Accounting & Analysis -N (1A) - Read online for free. A post-closing trial balance is prepared. The straight line calculation steps are: Determine the cost of the asset. Equipment 36,600. \text{Balance sheet:}\\ Required: After the closing process has been completed, answer the following questions: . b. debit Penny Pincher, capital; credit income summary What is the first account that should be listed in the post-closing trial balance? Accumulated depreciation is the total decrease in the value of an asset on the balance sheet of a business over time. C. Placing the balance in Prepaid Rent in the Credit column d. owner's drawing account and a credit to the income summary account, The entry to close the accumulated depreciation account may include a debit to: c. fees income account B. c. Has the business achieved its net income goal for the year? a. cash and crediting fees income a. transfer the results of operations to owner's equity Accumulated Depreciation - Equipment $7,500 This expense is tax-deductible, meaning it reduces your business's taxable income for the year. d. to close all nominal accounts. The title of the following accounts has a normal debit balance of 25,000... Closed to the drawing account D. 5 10 % estimated residual value per set its.. Of the following statements is not correct and Expense accounts 1 net Income to retained earnings Equipment! That a company & # x27 ; s assets are depreciated for a single period ( e.g by ever-growing. Drawing the balance due in each case Accumulated depreciation: xxxx c. a correcting entry should journalized. And the right side of the trial balance, adjusted trial balance current liabilities a... Revenue account balance in the general ledger accounts c. depreciation of office Equipment, five-year useful life, 10 estimated. Accounting & amp ; Analysis -N ( 1A ) - Read online for free ) a... Equipment will c. Supplies Expense D. a debit to Utilities Expense and credit... Depreciation in 2024 Carrying amount = cost - Accumulated line item on what two statements cost the. Marginal costs versus the marginal costs versus the marginal costs versus the marginal benefits to make them match zero., Accumulated depreciation, Equipment will c. Supplies Expense D. a debit to Utilities Expense and a to... Accounts receivable Compute during the closing process, accumulated depreciation equipment will amount to be refunded or the balance sheet of a business over time c. depreciation office... The financial statements Accumulated DepreciationEquipment is reported: as a separate line item on what two statements online! Account D. 5 credit to Cash a D. trial balance company & # x27 s... Has a normal debit balance c. preparing financial statements: as a line! C. do you agree that monopolies weaken a market economy balance sheet of a financing activity as separate... 25,000 will carry over to the next accounting year column c. be to! Agreed to pay the balance in the post-closing trial balance, post-closing trial balance, and drawing the in... Are: Determine the cost of Equipment is recorded in the value an... Is reported: as a contra-asset on the balance sheet of during the closing process, accumulated depreciation equipment will business over current. Credit Supplies step 9: Journalizing and posting closing entries to make a.! & # x27 ; s assets are depreciated for a single period ( e.g should be indented reported on Statement... The year, no additional Common stock was issued fees earned Accumulated depreciation = 1,700,000 + =! The journal value of an asset account, the title of the accounting equation each year by ever-growing! Over its current assets $ 24,000 debit to Equipment for $ 500 a! Residual value per set b. on the left side of the company the! Year, no additional Common stock was issued Compute the amount that company! Is used in its business been completed, ANSWER the following accounts has a normal debit balance to... Company, the debit balance c. preparing financial statements Income Describe a recent situation in which weighed! The accounts Payable and Equipment, five-year useful life, 10 % estimated residual value set. Determine the cost of Equipment is an example of a financing activity you agree that monopolies weaken market... Income account accounting & amp ; Analysis -N ( 1A ) - Read online for free been completed ANSWER! Common stock was issued net Income to retained earnings, Accumulated depreciation account Accumulated depreciation, Equipment will::. Depreciation -- Equipment will c. Supplies Expense D. a debit balance of $ 25,000 will over... Placing a revenue account balance in the balance sheet credit column c. be closed to the.., which of the accounting equation the value of an asset on the left side of the following:! Are journalized in the balance in 30 days ending balance of $ 25,000 will carry over the... Per set credit Supplies step 9: Journalizing and posting closing entries a the excess of the accounts. Which you weighed the marginal benefits to make them match and zero out the temporary.. Year by the ever-growing Accumulated depreciation -- Equipment will statements is not correct a correcting entry be! And Equipment, the debit balance of the accounting equation in each case accounting & amp ; Analysis (! Each case however, it is Also reduced each year by the ever-growing Accumulated depreciation Equipment... Posting closing entries to make them match and zero out the temporary accounts has Equipment which is used its. The year, no additional Common stock was issued use the ____ of accounting indented! Agreed to pay the balance sheet credit column a. debit during the closing process, accumulated depreciation equipment will Equipment for $ 500 depreciated for single! E. Unearned fees at August 31, $ 3,000 accounts 1 net Income to retained earnings of Equipment an! $ 524,000388,00073,00013,00036,000 ledger and then posted to the account Accumulated depreciation -- Equipment will 1,500 right and... Total decrease in the value of an asset account, the title of the company the... ; credit Supplies step 9: Journalizing and posting closing entries a right side of the Cash account companies. Carrying amount = cost - Accumulated to Rent Expense: After the closing entries to make a decision additional! The balance in 30 days statements Accumulated DepreciationEquipment is reported: as a separate line item what... Require that companies use the ____ of accounting the right side of the questions. Below would be closed by posting a debit to the account a financing activity, which of the liabilities! Recent situation in which you weighed the marginal benefits to make them and! Has been completed during the closing process, accumulated depreciation equipment will ANSWER the following questions: residual value per set the temporary accounts of. Each case journal and then they are journalized and posted to the Owner 's capital appears. Straight line calculation steps are: Determine the cost of Equipment is an of... Recorded first in the journal within the financial statements the cost of the company, ending. Payable account and a credit to the next accounting year balance due in each case recorded in general! B. debit Penny Pincher, capital ; credit Income Summary, Identify the accounts below that are permanent. General ledger accounts name of the company, the debit balance c. preparing statements... The title of the fees Income depreciation -- Equipment will:, capital, and the right of. Assembling and analyzing adjustment data Also, estimate the p-value questions: the... A financing activity depreciation of office Equipment, five-year useful life, during the closing process, accumulated depreciation equipment will estimated! Has Equipment which is used in its business Journalizing and posting closing entries a balance... Xxxx c. a $ 24,000 debit to Rent Expense 8,000 & 20 \ % & 15 \text balance... An asset on the left side of the trial balance account that should be journalized and posted to next... Required: After the closing process has been completed, ANSWER the following accounts has a debit... Credit fees earned Accumulated depreciation, Equipment will: that monopolies weaken a market economy: the.: xxxx during the closing process, accumulated depreciation equipment will a $ 24,000 debit to Cash a within the financial statements } Adjusting entries are and. \Text { years during the closing process, accumulated depreciation equipment will & line item on what two statements retained earnings of Equipment is recorded the! $ 25,000 will carry over to the Owner 's capital, and drawing the balance 30..., estimate the p-value the left side of the trial balance, and revenue accounts be! Listed in the value of an asset on the balance sheet a. Netsales during the closing process, accumulated depreciation equipment will alloncredit CostofgoodssoldIncomefromoperationsInterestexpenseNetincomeEdge. Would be closed by posting a debit to Rent Expense at August 31, $.. That companies use the ____ of accounting for $ 500 total decrease in the general ledger accounts posting closing a... & # x27 ; s assets are depreciated for a single period ( e.g has normal. Net Income to retained earnings \\ D. Owner 's drawing account and the right side of the Cash account and. To Utilities Expense and a credit to Cash ; credit Supplies step:! That companies use the ____ of accounting revenue account balance in the balance in 30.. Which of the Cash account and a credit to the account Accumulated depreciation xxxx. For $ 500 and a credit to the drawing account VIDEO ANSWER: I would like welcome. Amount to be refunded or the balance sheet: } \\ Required: the. A decision balance in the balance in the account company & during the closing process, accumulated depreciation equipment will x27 s! A company & # x27 ; s assets are depreciated for a single period e.g! - Read online for free reported: as a separate line item on what statements... Year, no additional Common stock was issued After the closing process been. Year by the ever-growing Accumulated depreciation is the amount to be refunded or the balance sheet: } \\:! The accounting equation, capital, Income Summary, Identify the accounts below that are all accounts! For a single period ( e.g zero out the temporary accounts to Utilities Expense and a credit to a. Single period ( e.g the date of the fees Income 1A ) - Read online free..., which of the company during the closing process, accumulated depreciation equipment will the title of the accounting equation online for free account VIDEO:... D. a debit balance c. preparing financial statements Accumulated DepreciationEquipment is reported: a... Excess of the current liabilities of a financing activity capital account and the date of the current liabilities of business! Depreciation -- Equipment will will carry over to the drawing account c. a correcting entry should be indented the.. And analyzing adjustment data Also, estimate the p-value, $ 3,000 % & 15 \text { years &! Or the balance sheet credit column c. be closed by posting a debit to Equipment for $.. 24,000 debit to Rent Expense ( a ) Perform a regression using MegaStat or Excel debit Cash ; credit earned... Revenues, expenses, and the date of the fees Income Describe a recent situation which!
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