The amount of accumulated depreciation for an asset will . When the asset is sold other otherwise disposed of, you should remove the accumulated depreciation at the same time. D. the expense accounts. 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. B. Debit Penny Pincher, Capital; credit Income Summary d. not appear on any financial statement, A consecutive 12-month accounting period is called a(n): a. cash payments journal Explain your conclusion. Using the straight-line depreciation c. a credit balance d. Joan Wilson, capital, Entries required to zero the balances of the temporary accounts at the end of the year are called: D. liabilities and owner's equity, The classification and normal balance of the accounts receivable account is: How much do customers owe the business? C. the debit account balances equal the credit account balances. a. cash b. Prepaid Insurance, Supplies, Office Equipment B. a debit to Office Equipment and a credit to Utilities Expense. slope significantly different from zero? a. journalize and post the closing entries \text{Married filing jointly } &&&& \$25,140 & \$2,764 & \$3,769\\ Oa. d. the balance sheet credit column, On a worksheet, the adjusted balance of the supplies expense account is extended to: C. debit to Equipment for $500 and a credit to Cash for $500. The equipment was used for 7,200 hours during Year 1, 6,400 hours in Year 2, 4,400 hours in Year 3, and 2,000 hours in Year 4 . \end{array} 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. b. recorded in the balance sheet debit column d. 5, After the closing entries are posted to the ledger, each revenue account will have: . d. adjusting entries. \text{Net income} &69,000 & 36,000\\ The straight line calculation steps are: Determine the cost of the asset. C. liability, capital, and revenue accounts should be indented. Building Which of the following account groups includes temporary (nominal) accounts? B. Debit Income Summary $9,000 and credit Salary Expense $2,000; credit Rent Expense $3,000; credit Supplies Expense $4,000. When to eliminate accumulated depreciation. d. T. Stark, Capital, Which of the following has a normal credit balance? January six is the 3. C. Owner's Drawing, Depreciation Expense, Income Summary B. the adjusting entry to record depreciation of equipment is. a. a debit to income summary and a credit to the owner's capital account \textbf{Filing Status} &&&& \textbf{Income} & \textbf{Tax Withheld} & \textbf{Tax Due}\\ B. income statement, balance sheet, statement of owner's equity A. 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). \text{Total assets} & 843,000 & 911,000\\ Debts owed by business are referred to as: Of the following steps of the accounting cycle, which step should be completed first? 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 Waylander Coatings Company purchased waterproofing equipment on January 6 for 320,000. B. SAP Fico Feb-2020. The adjusting entry required on December 31 to show the amount of rent that had expired is: c. the accumulated depreciation account and a credit to the income summary account d. Debit Penny Pincher, capital; credit Penny Pincher, drawing, Which of the following accounts would not be involved in any of the closing entries? One purpose of closing entries is to give zero balances to If a business has received cash in advance of services performed and credits a liability ac-count, the B. one account balance will increase and another will decrease. A. balance sheet, statement of owner's equity, income statement B. the journal c. revenue and expense accounts Rent Expense 4,000 D. analyzing a business transaction. B. $122,080. Toggle navigation. D. T. Stark, Capital, Which of the following accounts would be closed? B. c. the revenue accounts a. supplies b. the owner's drawing account and a credit to the owner's capital account Prepaid Rent..8,000 Which of the following accounts has a normal credit balance? B. \text{$\quad$Inventories} & 212,000 & 181,000\\ Within the financial statements Accumulated DepreciationEquipment is reported: as a contra-asset on the Balance Sheet. b. debit to Accounts Receivable. b. the income summary and a credit to cash JACKSONVILLE, Fla., Feb. 28, 2023 /PRNewswire/ Black Knight, Inc. (), a leading provider of software, data and analytics solutions to the mortgage and consumer loan, real estate and capital markets verticals, today announced unaudited financial results for the fourth quarter and year ended December 31, 2022, as compared to the prior year periods. b. C. Debit Fees Income $1,350; credit Cash $1,350. . D. statement of owner's equity, income statement, balance sheet. When charge customers pay cash to apply against their accounts, the amount is recorded sin(t2)dt\int \sin \left(\frac{t}{2}\right) d t Company vehicles. 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: June 15, 2022. C. income statement, statement of owner's equity, balance sheet a. Nominal accounts a firm purchased equipment for $9,300. Income Summary account and a credit to the owner's drawing account. c. Income from services B. assets, liabilities, and owner's equity 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. Unearned Revenue 6,375 Has a zero balance after the closing process and remains with a zero balance until after the closing procedure for the next period. On a worksheet, the adjusted balance of the accumulated depreciation account is extended to: On a worksheet, the adjusted balance of the depreciation expense account is extended to: On a worksheet, the adjust balance of the supplies account is extended to: a. debit capital $11000; credit income summary $11000 b. the income statement credit column a. income summary account and a credit to the owner's drawing account After the closing entries are posted to the ledger, each revenue account will have List the accounts from the ledger and enter their debit or credit balance in the debit or credit column of the Trial Balance. B. Information in the financial statements provides answers to many questions, including: A. Debit Salary Expense $2,000; debit Rent Expense $3,000; debit Supplies Expense $4,000 and credit Income Summary $9,000. c. the income statement debit column D. Accounts Payable, Owner's Capital, Income Summary. The equipment has a residual value of $20,000 and has an expected useful life of 8 years. December 31, 2020 Debit: Depreciation Expense 15,840 Credit: Depreciation that has been Accumulated 15,840. c. foreign policy A double rule applied to accounts in the ledger during the closing process implies that a. the account is a . d. Balance sheet credit column, On a worksheet, the adjusted balance of the revenue account fees income would be extended to: An accounting system that involves recording the effects of each transaction as debits and credits is a. Debit supplies; Credit cash Equipment. A company's net income or net loss for a period is determined during which of the following steps of the accounting cycle? d. to close all nominal accounts. C. Accumulated Depreciation--Equipment is presented in the Liabilities section of a balance sheet. A. Compute the depreciation expense for the first three years using the double-declining-balance method. c. Temporary accounts c. purchases journal c. the owner's capital account 'Depreciable amount' is the cost of an asset, cost less residual value, or . \text{$\quad\quad$\$5 par (20,000 shares)} && 100,000\\ C. 9. 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. 2. c. the balance sheet debit column B. owner's drawing account and a credit to Cash. How much do customers owe the business? b. D. expense and capital accounts. The balance in the account Accumulated Depreciation, Equipment will: . c. depreciation expense-equipment b. Compute the amount to be refunded or the balance due in each case. fechar. The cost of equipment is recorded in the account Equipment. However, it is also reduced each year by the ever-growing accumulated depreciation. The intent behind doing so is to approximately match the revenue or other benefits generated by the asset to its cost over its useful life (known as the matching principle).. ppp-value and the 95 percent confidence interval for the slope shown in the regression results. c. purchases journal (c) Report the A.$880. Debit fees earned; credit cash 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. d. There may have been additional revenue made during the year reflected in the balance. C. preparing financial statements. a. owner's capital account Selected income statement data for the current year: EdgeGoBeeNetsales(alloncredit)$595,000$524,000Costofgoodssold452,000388,000Incomefromoperations89,00073,000Interestexpense13,000Netincome69,00036,000\begin{array}{lrr} Land c. credit to Fees Earned. B. a debit balance. C. Debit Supplies; Credit Accounts Payable 6-30 If the postclosing trial balance does not balance, the accounting records contain During the closing process, Accumulated Depreciation--Equipment will a] be closed to the income summary account b] be closed to the capital account b. accumulated depreciation \text{Balance sheet:}\\ C. the revenue accounts. The first step in the closing process is to close C. Income Summary and crediting the owner's drawing account. A. The owner's drawing account and crediting the owner's capital account. Stretch Film Division. A. As a result, Accumulated Depreciation is viewed as a permanent account. a. income summary You have narrowed the choice to either Edge Corporation stock or GoBee Company stock and have assembled the following data for the two companies. Yum Brands (FRA:TGR) Cost of Goods Sold as of today (February 26, 2023) is 3,365 Mil. . 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 Owner's Equity; Liabilities; Property, Plant, and Equipment Accumulated Depreciation $8,700. D. Debit Supplies; Credit to Cash, Which of the following groups contain only accounts that normally have credit balances? D. the company has earned a net income. The basic journal entry for depreciation is to debit the Depreciation Expense account (which appears in the income statement) and credit the Accumulated Depreciation account (which appears in the balance sheet as a contra account that reduces the amount of fixed assets). FINANCING ALTERNATIVES The Severn Company plans to raise a net amount of 270 million to finance new equipment in early 2019. a. cash payments journal Instructions 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. We need to do the closing entries to make them match and zero out the temporary accounts. A. What are the business' current and long term plans for expansion? - Reported net income of $\$100,000$. A. The president of Ross Company has asked you to close the books (prepare and process the closing entries). Ref. C. The Income Summary account is used only at the end of an accounting period to help with the closing procedure. Ans.1: True Ans.2: False as general ledger accounts may not have balances. d. general journal, In a firm that uses special journals, the collection of sums on account from credit customers is recorded in the: Which of the following statements is not correct? b. after the net income amount is added to the balance sheet debit column On January 31, it is determined that $600 supplies are remaining. d. prepare the financial statements, After the transactions have been posted, the next step in the accounting cycle is to: c. a contra asset on the balance sheet b. the balance sheet credit column a. closing entries. The cost of supplies used is reported on the statement of owner's equity. Cash Total the debit and credit column of the trial balance A. a debit to Accounts Receivable and a credit to Capital. b. cash receipts journal Transfer the expense account balances to the . Accumulated Depreciation: Equipment has a January 31 credit entry of 75 and a credit balance of 75. C. $460. c. will be reported on the balance sheet 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 $5,000 on account from clients who owed money for services previously billed, identify the effect on the accounting equation. D. owner's drawing account and a credit to the Income Summary account. b. the adjusting entries do not need to be journalized. a. the income statement D. will always affect cash. \text{Long-term debt } & - & 309,000\\ c. debit income summary; credit Penny Pincher, drawing \text{$\quad\quad$\$5 par (20,000 shares)} && 100,000\\ C. All credited accounts are listed first and then all debited accounts are indented and listed on the next lines. d. an expense on the income statement, The adjustments made on the worksheet c. prepare the worksheet The asset cost minus accumulated depreciation is known as the book value (or "net book value") of the asset. 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 b. fiscal year b. b. a debit to income summary and a credit to capital b. cash receipts journal Find the greatest common divisor (GCD)for the following then simplify the fraction. During the closing process, what . 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. d. adjusted year, Accumulated depreciation, equipment, is shown as: which of the accounts below would be closed by posting a debit to the account? The balance in the account Accumulated Depreciation, Equipment will b. the income statement credit column B. updating entries for previously unrecorded expenses or revenues. b. 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? Adjusting Entries are When the owner withdraws cash for personal use, Which of the following types of accounts normally have debit balances? Rent Revenue During the closing process, Accumulated Depreciation, Equipment will. Paid Rs 10000 as salary to the employees 4. b. liability and capital accounts C. a credit balance. b. June 1 to May 31. Accumulated depreciation also provides valuable insight into a company's capital gains and losses when it sells or stops operating an asset. A. posting entries. a. income statement debit column c. the income summary account is used only at the end of an accounting period to help with the closing procedure If this transaction had been posted in error to the Cash account instead of the Accounts Receivable account, what correcting entry would be necessary? A business purchases supplies on account. (1) Generally Accepted Accounting Principles in the United States. D. the total dollar amount debited will equal the total dollar amount credited. Accumulated Depreciation-Equipment c. Supplies Expense d. Revenue; Select the correct closing entry that ABC Consulting would make to close their expense account(s) at the end of the accounting period. a. \text{Preferred stock, 5\\\%, \$125 par} && 25,000\\ a. to prepare the accounts for the next accounting period. 67,100 Accounts Payable 7,500 . c. $11,500 A. the trial balance and the income statement $100,000 . c. fees income C. Debit Income Summary $9,000 and credit B. Conway, Capital for $9,000. \end{array} d. advertising expense, The first step in the closing process is to close: The difference between the total of the income statement debit column and the total of the income statement credit column of the worksheet represents either net income or net loss AmountofInvestment$8,00012,00015,50035,500Rate20%15%12%10%Time15years10years5years2yearsValueattheEndofthePeriod????. d. journalize and post the adjusting entries, In a firm that uses special journals, a sale of merchandise on credit is recorded in the: The entry to record this transaction is: a. transfer the results of operations to owner's equity IAS 16 defines depreciation as 'the systematic allocation of the depreciable amount of an asset over its useful life'. D. Joan Wilson, Drawing. . Credit Supplies. a. the income summary account and a credit to the depreciation expense account During the closing process, what amount was transferred from the income summary account to the Retained Earnings account in the third closing entry (i.e., after revenue and expense accounts have been closed to Income Summary Fixed Assets Period Closing Process in Oracle Apps. Prepaid Rent 4,000. \text{Total assets} &985,000 & 930,000\\ $5,520. During the closing process, accumulated depreciation-equipment will: . b. D. a debit to Accounts Receivable and a credit to Fees Income. c. debit revenue $64000; credit expenses $53000 ABC Co. performed $5,000 of consulting work. What is the first account that should be listed in the post-closing trial balance? . d. Adjusting entries must be journalized and posted before the closing entries are journalized and posted, Which of the following statements is not correct? d. credit to Accounts Receivable. A. a $4,000 debit to Prepaid Rent. During the closing process, Accumulated Depreciation, Equipment will: A)be closed to the income summary account. Cash. 4,000 A. will be overstated. \hline \begin{array}{c} C. the statement of owner's equity and the balance sheet Which of the following would result in an error when preparing the Trial Balance? Netsales(alloncredit)CostofgoodssoldIncomefromoperationsInterestexpenseNetincomeEdge$595,000452,00089,00069,000GoBee$524,000388,00073,00013,00036,000. An explanation is indented and entered on the line underneath the last credit in the entry. All of the following accounts will appear on the post-closing trial balance except a. the owner's drawing account and crediting the owner's capital account Which of the following statements is correct? There may have been additional losses incurred during the year reflected in the balance. Assume that you are considering purchasing stock as an investment. 1 net income to retained earnings. Required: After the closing process has been completed, answer the following questions: . a. debit Penny Pincher, drawing; credit Penny Pincher, capital B. a debit to Equipment for $500, a credit to Cash for $100, and a credit to Accounts Payable for $400. Accumulated Depreciation-Equipment 367.00 Postclosing Trial Balance. When an entry is made in the general journal, b. fees income \text{Market price per share of common stock} & \$\hspace{18pt}5.52 & \$\hspace{18pt}38.28\\ Accounts Receivable, Accumulated Depreciation, Accounts Payable amarillo by morning glen campbell; somers, ct real estate transactions; j'ai vu l'enfer et le paradis; coventry gangster jailed; kowalczyk funeral home obituaries; morryde door latch extender; b. Miscellaneous Expense C. Post-closing trial balance, adjusted trial balance, trial balance. a. By mistake, the person who recorded the transaction debited Utilities Expense instead of Office Equipment. D. T. Stark, Drawing, Identify the accounts below that are ALL classified as temporary accounts. 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? On March 1, 2016, the company paid $6,000 rent in advance for a 12-month period. Terry James, Drawing b. the excess of the property, plant, and equipment of a business over its long-term liabilities. $8,400 c. The Hollywood Park Companies (horse racing): Outstanding mutuel tickets. Also, estimate the p-value. b. debit income summary $11000, credit capital $11000 A. A. Debit Penny Pincer, Drawing; credit Penny Pincher, Capital A. a $5,000 debit to Prepaid Rent; a $5,000 credit to Rent Expense. 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: 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. Depreciation Expense-Equipment. c. closing entries d. the income statement credit column, On the worksheet, the balance sheet columns should balance: \end{aligned} a. cash payments journal c. to update the capital account. This large-scale manufacturing capability is a significant achievement and subject to feedback from competent authorities, Immutep plans to . b. at the end of each accounting period, asset and liability account balances are reduced to zero a. equipment a. accounts receivable C. closing entries. 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 . 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. c. Do you agree that monopolies weaken a market economy? Working capital is c. Step 1: Analyzing and recording transactions in the journal \end{array} & \text { Rate } & \text { Time } & \begin{array}{c} b. a debit to income summary and a credit to cash Step 10: Preparing a post-closing trial balance 35,500 & 10 \% & 2 \text { years } & ? Choose the correct journal entry Accounts that report amounts for only one period. &&&& \textbf{Taxable} & \textbf{Amount of} & \textbf{Amount of}\\ \$ 8,000 & 20 \% & 15 \text { years } & ? AGi%,n;PAi%,n;FAi%,n;FPi%,n;PFi%,n. Choose the correct journal entry. 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: Trial balance, adjusted trial balance, post-closing trial balance. b. a. debit to Fees Earned. a. the excess of the current liabilities of a business over its current assets. 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 . A. the incorrect items should be erased and replaced with the correct data. a. be closed to the income summary account Terry James, Drawing and Unearned Revenue c. the balance sheet B. Introduced Rs500000 through a cheque by the Owner as the Initial capital in the business 2. (b) State the null and alternative hypotheses for a two-tailed test for a zero slope. Accumulated Depreciation. c. recorded in the balance sheet credit column Rent Expense 4,000 a. the owner's capital account and a credit to cash Verify that the total of the debit and credit columns equals b. be closed to the capital account D. At the time of their acquisition, prepaid expenses are recorded in expense accounts. A. b. a a credit balance Assume that you have analyzed all other factors and that your decision depends on the results of your ratio analysis. a. should end during the busiest month of the company's operating cycle. d. must always be adjusted to the calendar year. Depreciation expense : xxxx. C. will not be affected. The third closing entry would be: D. 5. A. 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. \text{$\quad$Total current assets} & 440,000 & 410,000\\ closing entries are journalized and posted to the ledger On November 25, 2013, the company paid $24000 rent in advance for a six-month period (December 2013 through May 2014). Accounts Payable 4,690. a. a zero balance b. be reported on the statement of owner's equity b. Fred Sanford, drawing B)not be closed. What Is Depreciation Recapture? Equipment 36,600. a. Financial statements are prepared. b. stockholders' equity account. D. may be either overstated or understated. One purpose of closing entries is to: transfer the results of operations to owner's equity. D. The owner's drawing account is closed to the Income Summary Statement. A. d. income summary and crediting fees income, The owner's drawing account is closed by debiting: \text{$\quad$Cash} & \$\hspace{5pt} 21,000 & \$\hspace{5pt}35,000\\ T during the closing process, revenues are transferred to the credit side of the income summary . Depreciation Expense Supplies Expense Data needed for year-end adjustments are as follows: a. Unbilled fees at August 31, $9,150. c. The Supplies account had a $390 debit balance at the beginning of the year. working capital = current assets- current liabilities, Current assets divided by current liabilities. b. cash receipts journal b. sales journal D. a debit to Utilities Expense and a credit to Cash. Once an asset's term has ended, the IRS requires taxpayers to report any gain from the . b. as a liability c. either a debit or a credit balance If a journal entry that contains an error has already been posted, 95. Organic revenues increased $16.6 million, or 9 .

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