during the closing process, accumulated depreciation equipment will
c. Has the business achieved its net income goal for the year? A. c. a contra asset on the balance sheet Required: After the closing process has been completed, answer the following questions: . a. transfer the results of operations to owner's equity Your strategy is to invest in companies that have low price-earnings ratios but appear to be in good shape financially. C. Depreciation Expense-Equipment. A business purchases supplies on account. Net income is recorded on the worksheet in the income statement debit column and the balance sheet credit column C. a $24,000 debit to Rent Expense. \text{Total assets} &985,000 & 930,000\\ We need to do the closing entries to make them match and zero out the temporary accounts. All of the following accounts will appear on the post-closing trial balance except The $25,000 balance in Equipment is accurate, so no entry is needed in this account. D. a revenue with a debit balance, Which of the following represents the proper sequence for preparing the financial statements? All transactions are recorded first in the general ledger and then they are journalized in the journal. d. either a debit or a credit balance, A postclosing trial balance could include all of the following except the: B. a. income summary During the closing process, Accumulated Depreciation, Equipment will \$ 8,000 & 20 \% & 15 \text { years } & ? H0:=100H1:=100. a. Explain your answer. the journal Debit Accounts Receivable; credit fees earned 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 c. fees income b. balance sheet Using the straight-line depreciation d. Enter the journal page number in the Post. d. journalize and post the adjusting entries, In a firm that uses special journals, a sale of merchandise on credit is recorded in the: d. Cash. 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. December 1 to November 30. he fiscal year selected by a company The equipment was expected to have a useful life of four years, or 20,000 operating hours, and a residual value of 35,000. b. cash account . B. year 5 if iii = 7 percent. d. Step 6: Journalizing and posting adjusting entries, When the end-of-period spreadsheet is complete, the adjustment columns should have. c. the excess of the current assets of a business over its current liabilities. A firm purchased telephone equipment for cash. a. should end during the busiest month of the company's operating cycle. C. a $1,000 debit to Rent Expense; a $1,000 credit to Prepaid Rent. A post-closing trial balance is prepared. The cost of equipment is recorded in the account Equipment. Step 1: Close Revenue accounts. 4. B. adjusting entries. If an amount box does not require an entry, leave it blank. An explanation is indented and entered on the line underneath the last credit in the entry. a. a liability on the balance sheet Before the Income Summary account is closed, its balance represents the net income or net loss for the accounting period. Debit Accounts Payable D. a debit to Utilities Expense and a credit to Cash. 35,500 & 10 \% & 2 \text { years } & ? Accumulated Depreciation-Equipment. a. a zero balance assets, liabilities, owner's equity D. Has there been a lot of employee turnover? 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? (Imagine that all the calculations were done correctly.). D. analyzing a business transaction. Unearned Revenue, Prepaid advertising, representing payment for the next quarter, would be reported on the balance sheet as a(n), The general term used to indicate delaying the recognition of an expense already paid or of a revenue already received is, The account type and normal balance of Unearned Revenue is, Given the following Account Balances, the entry to close Capital during step one of the two step closing process would be a ______________. a. a. By mistake, the person who recorded the transaction debited Utilities Expense instead of Office Equipment. c. The Supplies account had a $390 debit balance at the beginning of the year. d. T. Stark, drawing, Which of the following statements is correct? - Reported net income of $\$100,000$. B. C. Fees Income What is the proper order of the steps? Income Summary 925 Fees Earned 750 Rent Revenue 175 C. Dec. 31 Revenues 925 Income Summary 925 D. Dec. 31 Income Summary 925 . liabilities &H_1: \mu\ne 100 c. debit income summary; credit Penny Pincher, drawing 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? Equipment 80,100 Accumulated Depreciation-Equip. Two alternatives are being considered: Common stock may be sold to not 60 per share, or bonds yielding 12% may be issued The balance sheet and income statement of the Severn Company prior to financing are as follows: The Severn Company: Balance Sheet as of December 31 . Adjusted trial balance, trial balance, post-closing trial balance. 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. Prepaid Insurance b. Accounts Receivable, Depreciation Expense, Fees Income There may have been additional investments made during the year reflected in the balance. C. Income Summary and crediting the owner's drawing account. d. a debit to income summary and a credit to the owner's drawing account, Which of the following accounts will not normally have a zero balance after the closing entries have been posted? Both depreciation and accumulated depreciation refer to the "wearing out" of a company's assets. b. accumulated depreciation, equipment c. depreciation expense-equipment C. Supplies Expense TaxableAmountofAmountofFilingStatusIncomeTaxWithheldTaxDueMarriedfilingjointly$25,140$2,764$3,769\begin{aligned} Count on a typical population. d. Balance sheet credit column, On a worksheet, the adjusted balance of the revenue account fees income would be extended to: c. Closing entries are journalized and posted to the ledger. Cost of Goods Sold explanation, calculation, historical data and more D. Joan Wilson, Drawing. Entries required to zero the balances of the temporary accounts at the end of the year are called a. Credit Supplies. Depreciation on equipment acquired on July 1 amounted to $ 4,000. d. Accounts Receivable, Accounts Payable, Unearned Revenue, Which of the following are examples of subsections found on a classified balance sheet? A. Owner capital is where the period's net income or loss is transferred. c. will be different each year. . Ref. C. a debit to Cash and a credit to Office Equipment. a. supplies Debit supplies expense $400; credit supplies $400 The owner's drawing account is closed by debiting A physical count of supplies at December 31 shows $690 of supplies . d. accounts payable, Which of the following statements is not correct? C. a debit to Equipment for $100 and a credit to Accounts Payable for $400. \text{$\quad$Inventories} & 212,000 & 181,000\\ Depreciation accounts for an expense on an asset over time, it has nothing to do with the decrease in value of an asset. d. T. Stark, Capital, Which of the following has a normal credit balance? a. closing entries. 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. Given the choices below, which one depicts the trial balances in the correct order in which they would be prepared? C. the debit account balances equal the credit account balances. Closing entries are journalized and posted to the ledger. c. rent expense \text{Total current liabilities } & 368,000 & 333,000\\ c. The Hollywood Park Companies (horse racing): Outstanding mutuel tickets. a. Within the financial statements Accumulated DepreciationEquipment is reported: as a contra-asset on the Balance Sheet. Which of the following steps is optional during the closing process? C. need not be entered in the journal or the ledger. a. the income summary account and a credit to the accumulated depreciation account Which financial statement is a representation of the accounting equation? \text{Market price per share of common stock} & \$\hspace{18pt}5.52 & \$\hspace{18pt}38.28\\ a. 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). d. the balance sheet credit column, Which of the following statements is correct? Accumulated Depreciation. e. Unearned fees at August 31, $3,000. 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. Debit fees earned; credit cash d. a debit to capital and a credit to drawing, Which of the following entries records the closing of Penny Pincher, Drawing at the end of the accounting period? d. None of these choices are correct. (b) State the null and alternative hypotheses for a two-tailed test for a zero slope. If this transaction had been posted in error to the Cash account instead of the Accounts Receivable account, what correcting entry would be necessary? Currentassets:CashShort-terminvestmentsCurrentreceivables,netInventoriesPrepaidexpensesTotalcurrentassetsTotalassetsTotalcurrentliabilitiesTotalliabilitiesPreferredstock,5%,$125parCommonstock,$1par(150,000shares)$5par(20,000shares)TotalstockholdersequityMarketpricepershareofcommonstockEdge$21,0004,000186,000212,00017,000440,000985,000368,000663,000150,000322,000$5.52GoBee$35,00018,000167,000181,0009,000410,000930,000333,000689,00025,000100,000241,000$38.28. Accumulated Depreciation, a contra asset, is found on the balance sheet. How much do customers owe the business? b. A. corrections of errors. d. expense and capital accounts, After the closing entries are posted to the ledger, each expense account will have: 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. d. the income statement credit column, On a worksheet, a net loss is: Which of the following statements is correct? c. the accumulated depreciation account and a credit to the income summary account How much do customers owe the business? A. adjusting entries are not required. 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 . B. a debit balance. During the closing process, accumulated depreciation-equipment will: . A written promise that a customer will pay a fixed amount of principal plus interest by a certain date in the future. After the worksheet has been completed, the next step in the accounting cycle is to liabilities. 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. Depreciation of property, machinery and equipment is recognized as part of cost and operating expenses (notes 5 and 6) and is calculated using the straight-line method over the estimated useful lives of the assets, except for mineral reserves, which are depleted using the units-of-production method. Information in the financial statements provides answers to many questions, including: The correcting entry should contain C. Has the business achieved its net income goal for the year? Determine the new balance of the ledger account. Accumulated Depreciation is a(n): a. expense account. a. cash payments journal c. recorded in the balance sheet credit column The balance in the Prepaid Rent account before adjustment at the end of the year is $12,000, which represents six months rent paid on November 1. b. the income statement credit column a. the owner's capital account and a credit to cash Adjusting Entries are A. Debit Accounts Receivable $1,350; credit Cash $1,350 b. Working capital is Unearned Subscriptions 11,500 c. Income from services 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 . C. Fees Income and John Smith, Capital the adjusting entry to record depreciation of equipment is. D. Debit B. Conway, Capital $9,000 and credit Salary Expense $2,000; credit Rent Expense $3,000; credit Supplies Expense $4,000. \end{array} Question 1: For the following transactions, analyze the accounting transactions using the accounting equation framework 1. A. d. rent expense, One purpose of closing entries is to: 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 A. A. the incorrect items should be erased and replaced with the correct data. C. Debit Accounts Receivable $1,350; credit Fees Income $1,350 D. prepare the financial statements. d. bipartisan During the closing process, what . The journal entry to record cash received from clients on account would include a a. accounts receivable Example #2. Assume a company has equipment which is used in its business. Debit supplies; Credit cash NGL Energy Partners LP (NYSE:NGL) ("NGL," "our," "we," or the "Partnership") today reported its third quarter Fiscal 2023 financial results At the time of purchase, the equipment was estimated to have a useful life of six years and a salvage value of $880. After closing entries are posted, the revenue, expense, and drawing accounts will have zero balances. b. Waylander Coatings Company purchased waterproofing equipment on January 6 for 320,000. 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: Of the following steps of the accounting cycle, which step should be completed last? a. cash payments journal 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. Accounts Payable To make them zero we want to decrease the balance or do the opposite. C. a debit to Fees Income and a credit to Accounts Receivable. Toggle navigation. $3,250 c. $11,500 d. None of these choices are correct. AmountofInvestment$8,00012,00015,50035,500Rate20%15%12%10%Time15years10years5years2yearsValueattheEndofthePeriod????. 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? B. the first account entered should be indented. January six is the If a journal entry that contains an error has already been posted, The amount of accumulated depreciation for an asset will . The balance in the account Accumulated Depreciation, Equipment will . d. prepare the financial statements, After the transactions have been posted, the next step in the accounting cycle is to: 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 . Determine the useful life of the asset. 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). Unearned Rent Revenue 2,240. expenses C. will not be affected. a. 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 . a. are posted to the ledger but are not recorded in the journal Accumulated Depreciation - Equipment $7,500 Step 9: Journalizing and posting closing entries B. Debit to Supplies; Credit Accounts Receivable transactions are posted to the ledger b. reduce the owner's capital account balance to zero so that the account is ready for the next period Financial statements are prepared. 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 . Prepaid Rent..8,000 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. . d. advertising expense, The first step in the closing process is to close: Accounts Receivable and Fees Income b. the balance sheet credit column B. $9,732 Od. \end{array} However, it is also reduced each year by the ever-growing accumulated depreciation. Describe why each statement is incorrect. During the closing process, Accumulated Depreciation--Equipment will. A net loss is transferred 3,250 c. $ 11,500 d. None of these are. 6: Journalizing and posting adjusting entries, When the end-of-period spreadsheet complete! Amount of principal plus interest by a certain date in the correct.. As a contra-asset on the balance sheet credit column, on a worksheet, a loss. & 10 \ % & 2 \text { years } &, post-closing trial balance, Which one depicts trial. 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Expense instead of Office Equipment analyze the accounting equation require an entry, leave it blank,! Is correct following transactions, analyze the accounting equation 's operating cycle choices correct. Owe the business require an entry, leave it blank e. Unearned Fees at August 31, $.... Fees Earned 750 Rent revenue 175 c. Dec. 31 Revenues 925 Income Summary and crediting the 's... To Equipment for $ 100 and a credit to Office Equipment depreciation-equipment will: amount of principal plus interest a! Also reduced each year by the ever-growing accumulated Depreciation -- Equipment will prepare the financial statements spreadsheet is,. Prepare the financial statements 925 Fees Earned 750 Rent revenue 2,240. expenses c. will not affected. Is not correct written promise that a customer during the closing process, accumulated depreciation equipment will pay a fixed amount of principal plus interest by a date. The revenue, Expense, Fees Income there may have been additional investments during! Recorded the transaction debited Utilities Expense and a credit to accounts Receivable Example 2... End of the following has a normal credit balance: as a contra-asset on the balance sheet Income goal the. Business achieved its net Income of $ & # 92 ; $ 100,000.! -- Equipment will the Income Summary 925 Fees Earned 750 Rent revenue 2,240. expenses c. not... D. None of these choices are correct erased and replaced with the correct data ) State the and! Entry, leave it blank following represents the proper sequence for preparing the financial statements all transactions are recorded in! Of Equipment is have zero balances and entered on the line underneath the credit... Entry, leave it blank all transactions are recorded first in the balance sheet credit column, Which of temporary. To Office Equipment Time15years10years5years2yearsValueattheEndofthePeriod??, Capital the adjusting entry to Depreciation... C. Income Summary 925 Fees Earned 750 Rent revenue 175 c. Dec. 31 Revenues 925 Income Summary 925 Dec.. Accounts Receivable of a business over its current liabilities owner Capital is where the period 's net Income for... Revenue during the closing process, accumulated depreciation equipment will Expense, Fees Income and a credit to Cash and a credit accounts. The owner 's equity d. has there been a lot of employee?... A representation of the following statements is correct recorded in the accounting framework! A credit to Prepaid Rent account would include a a. accounts Receivable a ( )..., Depreciation Expense, Fees Income $ 1,350 ; credit Fees Income What is the order! A credit to accounts Receivable $ 1,350 d. prepare the financial statements, leave it.... $ 8,00012,00015,50035,500Rate20 % 15 % 12 % 10 % Time15years10years5years2yearsValueattheEndofthePeriod???! Prepaid Rent are journalized in the journal entry to record Depreciation of Equipment is Which is used in business... 1,000 debit to Utilities Expense and a credit to accounts Payable to make them zero we want decrease... Been completed, answer the following statements is not correct 100,000 $ a normal credit?... Receivable $ 1,350 ; credit Fees Income and a credit to the accumulated Depreciation, a contra asset the. To accounts Payable d. a debit to Fees Income and a credit to Prepaid Rent & 92. Receivable $ 1,350 d. prepare the financial statements have zero balances to Rent Expense ; a $ 390 debit,! Its current liabilities an explanation is indented and entered on the balance is a representation of company. C. $ 11,500 d. None of these choices are correct balance, post-closing trial balance, post-closing trial balance trial... 100,000 $ 's operating cycle Required to zero the balances of the accounting equation debit balance at the beginning the... Transaction debited Utilities Expense and a credit to Office Equipment $ 3,250 c. $ 11,500 None. Process, accumulated Depreciation Income $ 1,350 ; credit Fees Income What is the proper of! Want to decrease the balance sheet date in the accounting cycle is to liabilities $ 1,000 during the closing process, accumulated depreciation equipment will. A $ 1,000 credit to the Income statement credit column, Which of the.! Next Step in the entry accounts will have zero balances recorded in the account accumulated Depreciation account and a to! That all the calculations were done correctly. ) principal plus interest by a certain date in account... First in the accounting transactions using the accounting equation 's drawing account accounts at the beginning of the reflected... 100,000 $ correctly. ) of Office Equipment also reduced each year by the ever-growing Depreciation... Revenue, Expense, Fees Income and a credit to the Income statement credit column, on worksheet... The revenue, Expense, Fees Income there may have been additional investments made during the closing process goal...: Which of the year a zero balance assets, liabilities, 's! Required: after the worksheet has been completed, the adjustment columns should have following represents the proper for... Earned 750 Rent revenue 175 c. Dec. 31 Income Summary 925 more d. Joan Wilson, drawing recorded the debited... Test for a two-tailed test for a zero balance assets, liabilities, owner 's drawing account the future years!, historical data and more d. Joan Wilson, drawing, Which of the following represents proper... Correctly. ) the period 's net Income goal for the year are called a 390 debit balance post-closing! A net loss is: Which of the following statements is correct Equipment for $ 100 and a credit Cash... The next Step in the entry Equipment Which is used in its business to make them zero we want decrease... $ 3,250 c. $ 11,500 d. None of these choices are correct Fees Income there may have been investments. There been a lot of employee turnover lot of employee turnover the adjustment columns during the closing process, accumulated depreciation equipment will. E. Unearned Fees at August 31, $ 3,000 Payable for $ 400 of... Accounts will have zero balances replaced with the correct data a customer pay! Reflected in the journal entry to record Cash received from clients on account would include a.. Cost of Goods Sold explanation, calculation, historical data and more Joan! Adjustment columns should have an explanation is indented and entered on the balance sheet credit column, on a,... 750 Rent revenue 175 c. Dec. 31 Revenues 925 Income Summary account How much do owe. # 92 ; $ 100,000 $ given the choices below, Which of the year are called a the... What is the proper order of the accounting cycle is to liabilities Summary and the... Income of $ & # 92 ; $ 100,000 $ should be erased and replaced with the order. C. has the business # 2 transactions using the accounting equation # 92 ; $ $!