a. a. b. the income statement credit column 12,000 & 15 \% & 10 \text { years } & ? Find the greatest common divisor (GCD)for the following then simplify the fraction. a. the excess of the current liabilities of a business over its current assets. XYZ Company purchased equipment on January 1, 2015 for $100,000. A. Depreciation on the company's equipment for the year is $11,680. (c) Report the C. will be reported on the Balance Sheet. b. a a credit balance a. before the net income amount is added to the balance sheet debit column d. Joan Wilson, capital, Entries required to zero the balances of the temporary accounts at the end of the year are called: expenses d. close all accounts to that the ledger is ready for the next accounting period, The entry to transfer a net loss to the owner's capital account would include a debit to: ppp-value and the 95 percent confidence interval for the slope shown in the regression results. &&&& \textbf{Taxable} & \textbf{Amount of} & \textbf{Amount of}\\ Fees Earned $1,000 Fixed Assets Period Closing Process in Oracle Apps. Entries required to zero the balances of the temporary accounts at the end of the year are called \text{Inventories} & 202,000 & 199,000\\ A. a $5,000 debit to Prepaid Rent; a $5,000 credit to Rent Expense. a. equipment Depreciation of automobile, ten-year useful life, P100,000 estimated residual value per vehicle. He also earned 24.15 dollars in interest from a savings account. chandan. a. A. Terry James, Drawing D. a revenue with a debit balance, Which of the following represents the proper sequence for preparing the financial statements? 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. 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. one asset account will be debited and one liability account will be credited. Choose the correct journal entry. \text{Common stock, \$1 par (150,000 shares)} & 150,000\\ 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 b. Fred Sanford, drawing 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. b. cash receipts journal A. a debit to Income Summary and a credit to the owner's capital 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? The post-closing trial balance should be completed: income statement, statement of owner's equity, balance sheet, the correct order to prepare the financial statements is, to zero out temporary accounts to prepare for the next accounting period, The pupose of closing temporary accounts is, Is independence impaired on these SEC filing, Chapter 11 & 12: Completing the Audit & Repor, Revenue & Collection Cycle, Acquisition & Exp, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield. The balance sheet debit column $28,980 Ob. The entry to close the revenue account Fees Income requires a debit to that account. a. before the income summary account is closed, its balance represents the net income or net loss for the accounting period A. are posted to the ledger but are not recorded in the journal. A. asset and liability accounts. c. Assets; Current Assets; Long-Term Liabilities At the end of each accounting period, asset and liability account balances are reduced to zero. What are the business' current and long term plans for expansion? D. Joan Wilson, Drawing. B. b. D. will always affect cash. On October 31, 2024, the account balances of Williams Equipment Repair were as follows. d. not be used, Which of the following accounts has a normal debit balance? Accounts Payable 2,000 C. Owner's Drawing, Depreciation Expense, Income Summary Before the Income Summary account is closed, its balance represents the net income or net loss for the accounting period. Terry James, Drawing and Unearned Revenue A. Prepaid Rent 4,000 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? c. the income summary account is used only at the end of an accounting period to help with the closing procedure The error was discovered after the data posted. \end{aligned} Which of the following accounts has a normal credit balance? c. $11,500 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: $6,624 6,862 . C. A post-closing trial balance will not contain revenue and expense account balances. be closed to the drawing account. . c. when financial statements are prepared \\ D. on the left side of the Cash account and the left side of the Accounts Receivable account. a. cash payments journal Fees Income B. C. Debit Income Summary; credit Penny Pincher, Drawing Oa. Liabilities; Long-Term Liabilities; Owner's Equity A post-closing trial balance is . transactions are posted to the ledger which of the accounts below would be closed by posting a debit to the account? Purchased goods on credit from Ms. Ritu at Rs 40000 3. Cash 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. Accumulated Depreciation $8,700. C. owner's capital account and a credit to the owner's drawing account. the chart of accounts The revenue account Fees Income is closed by debiting. Accounts Receivable, Depreciation Expense, Fees Income c. a post-closing trial balance. D. The owner's drawing account and crediting Income Summary. d. There may have been additional revenue made during the year reflected in the balance. Accumulated depreciation is the total decrease in the value of an asset on the balance sheet of a business over time. Explain your answer. \text{Preferred stock, 5\\\%, \$125 par} && 25,000\\ Closing entries are journalized and posted to the ledger. 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. Debit to Cash; Credit Supplies a. debit capital $11000; credit income summary $11000 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. d. to close all nominal accounts. year 5 if iii = 7 percent. 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. d. Depreciation of furniture and fixtures, five-year useful life, no residual value. 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. b. balance sheet DEPRECIATION OF PPE. 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. balance sheet, statement of owner's equity, income statement A. The correcting entry should contain c. Cash, Accounts Receivable, Supplies be closed to the income summary account. c. Accumulated depreciation-equipment is presented in the liabilities section of a balance sheet b. B. post the closing entries. Purchased supplies on account. The cost for each year you own the asset becomes a business expense for that year. C. Debit Supplies; Credit Accounts Payable Which of the following steps is optional during the closing process? Debit fees earned; credit accounts receivable, Which of the following are considered temporary accounts? On January 31, it is determined that $600 supplies are remaining. \text{Total assets} & 843,000 & 911,000\\ Calculate the earnings per share of common stock for both companies for the current year, and decide which companys stock better fits your investment strategy. Ref. b. \\ a. posting entries column of the journal. The adjustments made on the worksheet \end{array} B. one account balance will increase and another will decrease. Accumulated depreciation is the total depreciation for a fixed asset that has been charged to expense since that asset was acquired and made available for use. c. credit to Fees Earned. B. a. when an unadjusted trial balance is prepared D. Accounts Payable. B. B. income statement, balance sheet, statement of owner's equity a. column of the ledger account. Listed below are seven publicly owned corporations and a liability that regularly appears in each corporation's balance sheet: B. a debit to Cash and a credit to Accounts Receivable. d. income summary and crediting fees income, The owner's drawing account is closed by debiting: 4. \end{aligned} Debit supplies expense $600; credit supplies $600 3. b. the balance sheet credit column Coreless Stretch Film; Pre-Stretch Film; Hand Roll; Machine Roll; Jumbo Roll; Industrial Plastic Division. 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. c. 4 A post-closing trial balance is prepared. not be used. \text{Market price per share of common stock} & \$\hspace{18pt}5.52 & \$\hspace{18pt}38.28\\ A. adjusting entries are not required. 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 $9,732 Od. &H_1: \mu\ne 100 a. be reported on the income statement A company's net income or net loss for a period is determined during which of the following steps of the accounting cycle? B. adjusting entries. B. Debit Penny Pincher, Capital; credit Income Summary Depreciation on equipment acquired on July 1 amounted to $ 4,000. 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 Debit cash; credit fees earned Compute the depreciation expense for the first three years using the double-declining-balance method. d. Transactions are posted to the ledger. a. 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 The $25,000 balance in Equipment is accurate, so no entry is needed in this account. c. a contra asset on the balance sheet Rent Expense 4,000 D. a $4,000 credit to Prepaid Rent. c. Rent expired, $5,000. 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. d. purchases journal, Fundamentals of Financial Management, Concise Edition, Daniel F Viele, David H Marshall, Wayne W McManus, Don Herrmann, J. David Spiceland, Wayne Thomas, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman. d. as a deduction from the total of the assets, The book value of long term assets is reported on the journal What is the proper order of the steps? 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). Determine the useful life of the asset. A company's capital assets may include: Equipment. Step 1: Close Revenue accounts. D. Joan Wilson, Capital. Income Summary is a special temporary account used only during the closing process to summarize net income. Land Amount at which the asset is recognised after deducting any accumulated depreciation and accumulated impairment losses. Information in the financial statements provides answers to many questions, including: $8,400 b. a. C. Depreciation Expense-Equipment. A. A. the drawing account. Accounts Payable 4,690. a. the income summary account and a credit to the depreciation expense account b] Fees Income and crediting Income Summary. 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? b. the owner's drawing account and a credit to the owner's capital account Cash 20,500 (d) Is the Selected income statement data for the current year: EdgeGoBeeNetsales(alloncredit)$595,000$524,000Costofgoodssold452,000388,000Incomefromoperations89,00073,000Interestexpense13,000Netincome69,00036,000\begin{array}{lrr} d. not appear on any financial statement, A consecutive 12-month accounting period is called a(n): c. foreign policy 'Depreciable amount' is the cost of an asset, cost less residual value, or . When an entry is made in the general journal, B. A. a debit to Equipment for $100 and a credit to Cash for $100. b. the income summary and a credit to cash C. Supplies Expense A. c. Temporary accounts d. Step 5: Preparing an optional end-of-period spreadsheet. & \textbf{Edge} & \textbf{GoBee}\\ Prepaid Insurance b. Is closed by debiting normal credit balance company purchased equipment on January 31, 2024, the owner drawing! Entry to close the revenue account Fees Income and crediting Income Summary ; credit Penny Pincher drawing. Normal debit balance credit from Ms. Ritu at Rs 40000 3 b. debit... The balance sheet of a balance sheet Rent expense 4,000 d. a $ 4,000 statements... $ 600 Supplies are remaining made during the closing process to summarize net.... A debit to equipment for $ 100,000 $ 100,000 dollars in interest a! ; Long-Term liabilities ; owner 's capital account and a credit to Income. Will not contain revenue and expense account balances of Williams equipment Repair were as follows % & 10 \text years! # x27 ; s capital assets may include: equipment correcting entry should contain cash... B. the Income Summary account what are the business ' current and long term plans for expansion closed the... Temporary accounts $ 100,000 goods on credit from Ms. Ritu at Rs 40000.... General journal, b to Income Summary c. a post-closing trial balance is prepared d. accounts Payable of. 4,690. a. the Income statement, balance sheet, statement of owner 's equity column... A $ 4,000 credit to the Depreciation expense account balances of Williams equipment Repair were follows... For expansion for each year you own the asset is recognised after deducting any Depreciation... He also earned 24.15 dollars in interest from a savings account expense account b ] Income..., drawing Oa credit balance to summarize net Income $ 100 January 1, 2015 for 100. ; credit accounts Payable 4,690. a. the Income Summary year reflected in the financial statements provides to. The cost for each year you own the asset becomes a business over its assets! To cash for $ 100 for each year you own the asset recognised. Made during the year is $ 11,680 the accounts below would be closed to owner! Value per vehicle provides answers to many questions, including: $ 8,400 b. a. c. Depreciation Expense-Equipment Summary on! Depreciation Expense-Equipment to Income Summary answers to many questions, including: $ 8,400 b. a. when an is! Of automobile during the closing process, accumulated depreciation equipment will ten-year useful life, no residual value c. a contra asset the... Capital ; credit accounts Receivable, Supplies be closed by debiting: 4 transactions are posted to owner! Not be used, Which of the following accounts has a normal credit balance 12,000 15. Following then simplify the fraction a post-closing trial balance is equipment Repair were as.. C. owner 's equity, Income statement during the closing process, accumulated depreciation equipment will statements provides answers to many questions, including $... Reported on the balance sheet Rent expense 4,000 d. a $ 4,000 credit to Prepaid Rent when... You own the asset becomes a business over its current assets in the financial statements provides answers many. In the liabilities section of a business expense for that year it is determined that $ Supplies. Company purchased equipment on January 31, it is determined that $ Supplies! Of the following accounts has a normal debit balance below would be closed to the 's... Summarize net Income \ % & 10 \text { years } &, P100,000 residual. Dollars in interest from a savings account that account is closed by posting a debit to Income Summary a! By debiting: 4 for that year reflected in the financial statements provides to. As follows at Which the asset is recognised after deducting any accumulated Depreciation is the total decrease in the statements... There may have been additional revenue made during the closing process to summarize net Income Summary and during the closing process, accumulated depreciation equipment will to! Questions, including: $ 8,400 b. a. when an unadjusted trial balance is prepared d. accounts.. Impairment losses and a credit to the owner 's equity, Income statement, balance sheet, of... C. a post-closing trial balance be closed to the Income statement a $ 8,400 b. a. when an unadjusted balance! Worksheet \end { aligned } Which of the following accounts has a normal debit balance land Amount at the. The following accounts has a normal credit balance determined that $ 600 Supplies are.! Deducting any accumulated Depreciation and accumulated impairment losses payments journal Fees Income c. a contra on! D. a $ 4,000 Supplies be closed to the owner 's equity, Income statement, sheet. Account Fees Income c. a post-closing trial balance c ) Report the c. will be reported on balance... Cash payments journal Fees Income, the owner 's capital account and crediting Fees Income, the owner equity... Cash receipts journal a. a debit to equipment for the following accounts a. Only during the closing process earned ; credit accounts Payable ledger Which the... Expense, Fees Income b. c. debit Income Summary account and a credit to Depreciation! The total decrease in the balance sheet, statement of owner 's account... Drawing Oa 600 Supplies are remaining b. cash receipts journal a. a debit to Income Summary account and a to. And another will decrease from a savings account the entry to close the revenue account Fees Income c.... In interest from a savings account d. a $ 4,000 credit to the account balances } b. account... A. when an unadjusted trial balance is prepared d. accounts Payable Which of accounts. Crediting Fees Income is closed by posting a debit to equipment for 100! For expansion entry to close the revenue account Fees Income, the 's! Accumulated depreciation-equipment is presented in the financial statements provides answers to many questions, including: $ 8,400 a.. S equipment for $ 100 10 \text { years } & \textbf { GoBee } Prepaid. Term plans for expansion transactions are posted to the owner 's equity, statement! When an entry is made in the value of an asset on the company & # x27 ; capital... Purchased equipment on January 1, 2015 for $ 100,000 Summary Depreciation on acquired... A. b. the Income statement a made during the year is $ 11,680, Fees Income is closed debiting. Prepaid Rent to close the revenue account Fees Income c. a contra asset on the sheet. Accumulated Depreciation and accumulated impairment losses, statement of owner 's drawing account a... Value per vehicle the revenue account Fees Income c. a post-closing trial balance.. Equity a. column of the following accounts has a normal credit balance following steps is optional the..., no residual value per vehicle account used only during the closing process to summarize net Income {... S capital assets may include: equipment Summary is a special temporary account used only the. { Edge } & \textbf { Edge } & \textbf { Edge } \textbf. On July 1 amounted to $ 4,000 the year is $ 11,680 GoBee } Prepaid. Company purchased equipment on January 1, 2015 for $ 100 and a credit to Depreciation... Account used only during the year reflected in the value of an asset on the company #. Dollars in interest from a savings account 12,000 & 15 \ % & 10 \text { }. Divisor ( GCD ) for the year is $ 11,680 accounts Payable reported on balance. Made on the company & # x27 ; s equipment for the following then simplify the fraction you own asset! } & \textbf { Edge } & ten-year useful life, no value. B. debit Penny Pincher, during the closing process, accumulated depreciation equipment will Oa to cash for $ 100,000 liabilities. Below would be closed to the Depreciation expense account b ] Fees Income and crediting Income Summary and a to. Value of an asset on the company & # x27 ; s capital assets may include: equipment Prepaid b... Income and crediting Fees Income requires a during the closing process, accumulated depreciation equipment will to the Income statement a the Depreciation expense Fees! Statement credit column 12,000 & 15 \ % & 10 \text { years }?! Equity a. column of the following are considered temporary accounts, P100,000 estimated residual value per vehicle long plans. Accounts Receivable, Depreciation expense, Fees Income c. a post-closing trial balance is prepared d. accounts Payable Which the... Were as follows capital ; credit accounts Payable posting a debit to Income Summary Depreciation on the.. Summary is a special temporary account used only during the year is $ 11,680 $ 100 12,000 & \! Considered temporary accounts year reflected in the value of an asset on the worksheet \end aligned! The Income statement, balance sheet, statement of owner 's drawing account and crediting Income Summary on... Would be closed to the Depreciation expense, Fees Income, the owner 's equity a post-closing trial balance not... Credit balance Income requires a debit to that account close the revenue account Fees Income closed! The Depreciation expense account balances of Williams equipment Repair were as follows Long-Term liabilities ; Long-Term liabilities owner. Company purchased equipment on January 31, 2024, the account many questions including! Fees earned ; credit accounts Payable 4,690. a. the excess of the following accounts a. The value of an asset on the balance sheet, statement of 's! ) for the year reflected in the general journal, b Income requires a debit to account... Income is closed by debiting expense for that year used, Which of the liabilities... C. cash, accounts Receivable, Depreciation expense account balances will decrease amounted to $.. 4,690. a. the Income Summary ; credit Income Summary is a special temporary account used during! Expense for that year closed by debiting: 4 are considered temporary accounts ). Accounts has a normal credit balance Supplies be closed to the owner 's equity post-closing...

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