\text{$\quad\quad$\$5 par (20,000 shares)} && 100,000\\ a. accrual year chandan. \text{Long-term debt } & - & 309,000\\ On October 31, 2024, the account balances of Williams Equipment Repair were as follows. d. advertising expense, The first step in the closing process is to close: d. T. Stark, drawing, Which of the following statements is correct? c. April 1 to March 31. Fees Income C. $460. During the closing process, what . 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. Debit Accounts Receivable; credit fees earned 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. 2. 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. Step 10: Preparing a post-closing trial balance We need to do the closing entries to make them match and zero out the temporary accounts. sin(2t)dt. B. one account balance will increase and another will decrease. \end{array} B. d. a zero balance, Which of the following accounts is not closed? Trial balances are prepared in a certain order. D. owner's drawing account and a credit to the Income Summary account. 3 Accumulated DepreciationEquipment Ans: C, LO: 2, Bloom: C, Difficulty: Easy, Min: 1, AACSB: n/a AICPA FC: Measurement, IMA: Reporting 4 - 17. The cost of supplies used represents an operating expense of the business Both depreciation and accumulated depreciation refer to the "wearing out" of a company's assets. A. the accounts to be credited should be indented. b. liability and capital accounts revenues, expenses, and drawing c. need not be entered in the journal or the ledger b. fiscal year D. Adjusting entries must be journalized and posted before the closing entries are journalized and posted. a. before the net income amount is added to the balance sheet debit column 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 . a. c. Enter the ledger account number in the Post. d. expense and capital accounts, After the closing entries are posted to the ledger, each expense account will have: the adjusting entry to record depreciation of equipment is. a. 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: Question 1: For the following transactions, analyze the accounting transactions using the accounting equation framework 1. Organic revenues increased $16.6 million, or 9 . 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. Capital Stock . C. Debit Income Summary; credit Penny Pincher, Drawing A. During the year, no additional Common stock was issued. A.$880. 3. a. be closed to the income summary account When charge customers pay cash to apply against their accounts, the amount is recorded Prepaid Insurance b. Immutep successfully scaled-up the manufacturing process for efti during the half year, with the completion of its first 2,000L manufacturing run by the Company's manufacturing partner, WuXi Biologics. b. cash receipts journal Waylander Coatings Company purchased waterproofing equipment on January 6 for 320,000. 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. Ans.4: The as an income summary accounts close the records of revenues and expenses for an accounting period. b. . column of the journal. Furniture. D. a debit to Utilities Expense and a credit to Cash. T 16. d. must always be adjusted to the calendar year. \text{Interest expense} & - & 13,000\\ The adjusting entry required on December 31 to show the amount of rent that had expired is: D. analyzing a business transaction. B. a. cash payments journal On November 25, 2013, the company paid $24000 rent in advance for a six-month period (December 2013 through May 2014). To make them zero we want to decrease the balance or do the opposite. An end-of-period spreadsheet is prepared. c. There may have been additional withdrawals made during the year reflected in the balance. c. income summary and crediting the owner's drawing account 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? 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 ____. c. Temporary accounts Choose the correct journal entry Using the straight-line method, the amount of one year's depreciation is 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: Debit Supplies Expense c. Notes Receivable What are the business' current and long term plans for expansion? (b) State the null and alternative hypotheses for a two-tailed test for a zero slope. On December 31, 2017, what is the balance of the accumulated depreciation account? b. The entry to record this transaction is: 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 owner's capital account Compute the depreciation expense for the first three years using the double-declining-balance method. Use the following account balances from the adjusted trial balance of ABC Consulting the most important output of the accounting cycle is the financial statement, which of the following financial statements reports information as of a specific date, What affect does the following transaction have on the accounting records? Depreciation on the company's equipment for the year is $11,680. b. debit Equipment $3,500; credit Depreciation Expense $3,500. Toggle navigation. \text{Common stock, \$1 par (150,000 shares)} & 150,000\\ C. Owner's Drawing, Depreciation Expense, Income Summary Owner's Equity; Liabilities; Property, Plant, and Equipment b. \end{array} Determine the new balance of the ledger account. The first entry closes revenue accounts to the Income Summary account. d. not appear on any financial statement, A consecutive 12-month accounting period is called a(n): Office Equipment A. Prepaid Rent 4,000 \end{aligned} a. the drawing account Accounts Receivable, Depreciation Expense, Fees Income b. prepare the post closing trial balance After closing entries are posted, the revenue, expense and drawing accounts will have zero balances In which of the following steps of the accounting cycle will the owner capital account be used? 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. T. Stark, Capital, Which of the following has a normal credit balance? 'Depreciable amount' is the cost of an asset, cost less residual value, or . $3,250 c. $11,500 d. None of these choices are correct. B. liability and capital accounts. d. Transactions are posted to the ledger. C. a $24,000 debit to Rent Expense. List the accounts from the ledger and enter their debit or credit balance in the debit or credit column of the Trial Balance. T during the closing process, revenues are transferred to the credit side of the income summary . C. not required. 4. c. rent expense a. January 1 to December 31. Select the correct journal entry from the options below to record the transaction: Land 2. 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. a debit to Accounts Receivable and a credit to Fees Income. C. closing entries. 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. a. prepare the financial statements C. a debit to Accounts Receivable for $3,500 and a credit to Fees Income for $3,500. Fixtures . When recording a business transaction into the journal, certain steps are followed. $122,080. Can we draw the conclusion that the mean is different from 100 at the.05 level of significance? The cost of supplies used is reported on the statement of owner's equity. a. income statement d. contra asset account. Credit Supplies. \text{Preferred stock, 5\\\%, \$125 par} && 25,000\\ Accounts Payable 4,690. 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. b. A. Debit Salary Expense $2,000; debit Rent Expense $3,000; debit Supplies Expense $4,000 and credit Income Summary $9,000. b. cash account Debit fees earned; credit cash b. a a credit balance C. Depreciation Expense-Equipment. The cost of supplies used is reported on the statement of owner's equity \end{array} A. the trial balance and the income statement hich of the following is the last step during the posting process? c. will be different each year. \text{Total stockholders equity} & 322,000 & 241,000\\ If an owner wanted to know how much money flowed into and out of the company, which financial statement would the owner use? Accumulated Depreciation, a contra asset, is found on the balance sheet. When the trial balance totals are not equal, the error may have been caused by recording a debit as a credit if the difference is divisible by B. MacGyver Company bought equipment on January 3, 2016, for $34,000. 2. Study with Quizlet and memorize flashcards containing terms like The journal entry to close the Fees Earned, $750, and Rent Revenue, $175, accounts during the year-end closing process would be: A. Dec. 31 Fees Earned 750 Rent Revenue 175 Income Summary 925 B. Dec. 31 . which of the accounts below would be closed by posting a debit to the account? FINANCING ALTERNATIVES The Severn Company plans to raise a net amount of 270 million to finance new equipment in early 2019. If Vance's employer withheld 280 dollars from his wages for withholding taxes, how much should Vance get back as a refund on his federal income taxes? d. Current Assets; Long-Term Liabilities; Property, Plant, and Equipment. Stretch Film Division. c. Only the balances of accounts that are affected by adjustments must be recalculated before they are recorded in the adjusted trial balance section of the worksheet . b. be closed to the capital account c. Adjusting entries are journalized and posted to the ledger. 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. C. an asset with a debit balance c. recorded in the balance sheet credit column B. a debit to Cash for $1,500 and a credit to Fees Income for $1,500. c. Closing entries are journalized and posted to the ledger. b. Miscellaneous Expense a. a debit to income summary and a credit to fees income Depreciation of automobile, ten-year useful life, P100,000 estimated residual value per vehicle. We see from the adjusted trial balance that our revenue accounts have a credit balance. d. Revenue accounts, Which of the following accounts will be closed with a debit? c. accounting year A. d. worksheet, After the worksheet has been completed, the next step in the accounting cycle is to: d. before the net income amount is added to the balance sheet credit column, On a worksheet, the adjusted balance of a contra asset account would be extended to: C. a debit to Equipment for $100 and a credit to Accounts Payable for $400. Debit supplies; Credit accounts payable 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? Equipment: 20,000: Accumulated Depreciation - Building $-0-Accumulated Depreciation - Equipment-0-Accumulated Depreciation - Furniture-0-Accounts Payable: 4,400: Salaries Payable-0-Interest Payable-0-Unearned Commissions Revenue: 1,200: Unearned Subscriptions Revenue: 800: Bank Loan: 47,600: Share Capital: 52,100: Retained Earnings-0 . You have been depositing money into an account yearly based on the following investment amounts, rates and times, what is the value of that investment account at the end of that period? ($100,000 - $20,000) / 8 = $10,000 in depreciation expense per year. A. a debit to Accounts Receivable and a credit to Capital. Example of Depreciation Accounts. C. Supplies Expense adjusting entries are journalized and posted to the ledger D. T. Stark, Capital, Which of the following accounts would be closed? a. transfer the results of operations to owner's equity a. If a transaction is properly analyzed and recorded, 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. the owner's drawing account and a credit to the owner's capital account \textbf{Filing Status} &&&& \textbf{Income} & \textbf{Tax Withheld} & \textbf{Tax Due}\\ Fees Earned $1,000 a firm purchased equipment for $9,300. B. On the same date, SloMo owed the following creditors: Simpson Supply Company, $12,000; Allen Office Equipment, $9,500. Entries required to zero the balances of the temporary accounts at the end of the year are called b. Which of the following account groups includes temporary (nominal) accounts? Randomly listed below are the steps to preparing a Trial Balance: Which of the following accounts has a normal debit balance? B. assets, liabilities, and owner's equity D. Has there been a lot of employee turnover? A. a $4,000 debit to Prepaid Rent. A. the drawing account. b. fees income and crediting income summary C. 9. a. a. cash receipts journal . assets, liabilities, owner's equity c. a post-closing trial balance. B. Debit to Supplies; Credit Accounts Receivable c. purchases journal Once an asset's term has ended, the IRS requires taxpayers to report any gain from the . Name and describe the three main economic systems. b. cash receipts journal D. Placing the Accounts Payable balance in the Credit column. An explanation is indented and entered on the line underneath the last credit in the entry. B. Debit Cash $1,350; credit Accounts Receivable $1,350 Accumulated Depreciation - Equipment $7,500 Owner capital is where the period's net income or loss is transferred. The equipment is estimated to have a useful . The third closing entry would be: a. D. not appear on any financial statement. Explain your conclusion. Accumulated Depreciation \text{Common stock, \$1 par (150,000 shares)} & 150,000\\ b. owner's drawing account and a credit to cash The balance in the account Accumulated Depreciation, Equipment will: . d. the income statement credit column, On a worksheet, a net loss is: b. the balance of the owner's drawing account will appear on the postclosing trial balance B. on the left side of the Accounts Payable account and the right side of the Cash account. Cost of Goods Sold explanation, calculation, historical data and more On January 31, it is determined that $600 supplies are remaining. d. to close all nominal accounts. He also earned 24.15 dollars in interest from a savings account. 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. Unearned Rent Revenue 2,240. C. Income Summary and crediting the owner's drawing account. c. The Supplies account had a $390 debit balance at the beginning of the year. A. . Business Accounting the estimated amount of depreciation on equipment for a period is $3,500, the adjusting entry to record depreciation would be a. debit Depreciation Expense $3,500; credit Accumulated Depreciation $3,500. A. balance sheet, statement of owner's equity, income statement In Exercises 212121 through 303030, find the indicated integral. A. the incorrect items should be erased and replaced with the correct data. 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. The purchase of equipment is an example of a financing activity. \text{Total liabilities} & 663,000 &689,000\\ 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: B. the statement of owner's equity and the income statement Which of the following accounts will not be closed at the end of the accounting cycle? b. when transactions are posted to the ledger B. a debit to Income Summary and a credit to Cash. Accumulated Depreciation-Equipment. b. debit income summary $11000, credit capital $11000 c. liability account. C. a $1,000 debit to Rent Expense; a $1,000 credit to Prepaid Rent. d. general journal, In a firm that uses special journals, the sale of merchandise for cash is recorded in the: Accounts Receivable 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 C. Debit Supplies; Credit Accounts Payable d. journalize and post the adjusting entries, In a firm that uses special journals, a sale of merchandise on credit is recorded in the: a. H0:=100H1:100\begin{aligned} C. on the left side of the Cash account and the right side of the Accounts Receivable account. c. only a balance sheet is required d. the balance sheet credit column, On a worksheet, the adjusted balance of the supplies expense account is extended to: December 31, 2020 Debit: Depreciation Expense 15,840 Credit: Depreciation that has been Accumulated 15,840. b. balance sheet Netsales(alloncredit)CostofgoodssoldIncomefromoperationsInterestexpenseNetincomeEdge$595,000452,00089,00069,000GoBee$524,000388,00073,00013,00036,000. \text{Preferred stock, 5\\\%, \$125 par} && 25,000\\ d. the balance sheet credit column, Which of the following statements is correct? b. the owner's capital account and crediting the owner's drawing account d. income summary and crediting fees income, The owner's drawing account is closed by debiting: 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). B. updating entries for previously unrecorded expenses or revenues. c. the balance sheet debit column A. on the left side of the Cash account and the right side of the Fees Income account. d. rent expense, One purpose of closing entries is to: A. a $5,000 debit to Prepaid Rent; a $5,000 credit to Rent Expense. SAP Fico Feb-2020. A. corrections of errors. A physical count of supplies at December 31 shows $690 of supplies . a. debit Penny Pincher, drawing; credit Penny Pincher, capital Subscriptions Earned 11,500. Land, Accumulated Depreciation, Cash b. financial statements. c. owner's capital account and a credit to the owner's drawing account Depreciation on equipment acquired on July 1 amounted to $ 4,000. An accounting system that involves recording the effects of each transaction as debits and credits is Example #2. a. the income statement debit column \\ AmountofInvestment$8,00012,00015,50035,500Rate20%15%12%10%Time15years10years5years2yearsValueattheEndofthePeriod????. d. fees income, All of the following accounts will appear on the postclosing trial balance except: B. After the closing entries are posted to the ledger, each revenue account will have c. the income summary account is used only at the end of an accounting period to help with the closing procedure liabilities 5,110 Prepaid rent 3,190 Total current assets TA Property, plant, and equipment: Land 106,000 Equipment 79,340 Accumulated depreciation - equipment 27,450 Book value - equipment Total property, plant, and equipment Total .
during the closing process, accumulated depreciation equipment will