during the closing process, accumulated depreciation equipment will

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? \text{Interest expense} & - & 13,000\\ VIDEO ANSWER: I would like to welcome everyone. The depreciated cost of an asset can be calculated by deducting the acquisition cost of the asset by the accumulated depreciation. \end{array} \\ How much do customers owe the business? For the first transaction, wages owned by the employees during December amounted to 30 and the last parole was on December 20. B. b. the income statement credit column d. not recorded, If a worksheet is prepared at the end of the accounting year, To make them zero we want to decrease the balance or do the opposite. Total the debit and credit column of the trial balance c. prepare the worksheet The correcting entry should contain C. not required. d. the income statement credit column, On a worksheet, a net loss is: C. A post-closing trial balance will not contain revenue and expense account balances. c. need not be entered in the journal or the ledger What are the business' current and long term plans for expansion? d. None of these choices are correct. Accumulated depreciation is the cumulative depreciation of an asset up to a single point in its life. C. a $1,000 debit to Rent Expense; a $1,000 credit to Prepaid Rent. A. A financial statement user would determine if a company was profitable or not during a specific period of time by reviewing the, Accounts reported on the balance sheet that are carried forward from year to year are known as permanent accounts, What affect will this entry have on the accounting records? d. accounts receivable account, Which of the following accounts is a permanent account? A written promise that a customer will pay a fixed amount of principal plus interest by a certain date in the future. After the closing entries are posted to the ledger, each revenue account will have D. Rent Expense.. 4,000 Prepaid Insurance b. DEPRECIATION OF PPE. & \textbf{Edge} & \textbf{GoBee}\\ b. Miscellaneous Expense d. Depreciation of equipment during year, $3,300. Prepaid Rent 4,000. C. debit to Equipment for $500 and a credit to Cash for $500. 4. c. credit to Fees Earned. If a journal entry that contains an error has already been posted, D. Accounts Payable. \hline Using the straight-line depreciation \text{$\quad$Cash} & \$\hspace{5pt} 21,000 & \$\hspace{5pt}35,000\\ When charge customers pay cash to apply against their accounts, the amount is recorded Depreciation of equipment during the year $3,400 c) Rent expired during the year $11,000 d) Wages accrued, but not paid at August 31 $2,500 . d. December 1 to November 30. he fiscal year selected by a company b. as a liability We see from the adjusted trial balance that our revenue accounts have a credit balance. Assume that you have analyzed all other factors and that your decision depends on the results of your ratio analysis. When an entry is made in the general journal, The annual accounting period adopted by a business. C. Owner's Drawing, Depreciation Expense, Income Summary b. be reported on the statement of owner's equity C. a $24,000 debit to Rent Expense. Coreless Stretch Film; Pre-Stretch Film; Hand Roll; Machine Roll; Jumbo Roll; Industrial Plastic Division. 1. D. not appear on any financial statement. C. Income Summary and crediting the owner's drawing account. D. Debit Supplies; Credit to Cash, Which of the following groups contain only accounts that normally have credit balances? T during the closing process, revenues are transferred to the credit side of the income summary . (a) Perform a regression using MegaStat or Excel. C. income statement, statement of owner's equity, balance sheet c. April 1 to March 31. The president of Ross Company has asked you to close the books (prepare and process the closing entries). D. statement of owner's equity, income statement, balance sheet. On December 31, 2013, the adjustment for expired rent would include: The adjusting entry to account for the use of supplies consists of: The adjusting entry to account for the expiration of prepaid insurance consists of: The adjusting entry to account for the expiration of prepaid advertising consists of: Which of the following statements is not correct? c. Closing entries are journalized and posted to the ledger. Accounts Payable $100,000 . C. one asset account will be debited and one liability account will be credited. A. a debit to Office Equipment and a credit to Cash. Also, estimate the p-value. Cost of Goods Sold explanation, calculation, historical data and more a. transfer the results of operations to owner's equity 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). Fixed Assets Period Closing Process in Oracle Apps. Land, Accumulated Depreciation, Cash \text{Common stock, \$1 par (150,000 shares)} & 150,000\\ B)not be closed. D. a $4,000 credit to Prepaid Rent. January six is the When the owner withdraws cash for personal use, Which of the following types of accounts normally have debit balances? b. June 1 to May 31. A business purchases supplies on account. sin(2t)dt. Closing the books. D. The owner's drawing account is closed to the Income Summary Statement. b. c. income summary and crediting the owner's drawing account a. a liability on the balance sheet d. to close all nominal accounts. D. analyzing a business transaction. Identify the statement below that is CORRECT regarding the journalizing process. D. may be either overstated or understated. b. the depreciation expense account and a credit to the accumulated depreciation account H0:=100H1:=100. Name and describe the three main economic systems. Explain your conclusion. c. the owner's capital account and crediting fees income 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. e. Unearned fees at August 31, $3,000. Fees Income One purpose of closing entries is to give zero balances to Which of the following accounts is not closed? b. is not characterized by any of these answer choices. the journal d. as a deduction from the total of the assets, The book value of long term assets is reported on Income Summary account and a credit to the owner's drawing account. b. recorded in the balance sheet debit column c. sales journal a. Your strategy is to invest in companies that have low price-earnings ratios but appear to be in good shape financially. The cost of supplies used represents an operating expense of the business expenses However, it is also reduced each year by the ever-growing accumulated depreciation. FilingStatusMarriedfilingjointlyTaxableIncome$25,140AmountofTaxWithheld$2,764AmountofTaxDue$3,769. a. before the income summary account is closed, its balance represents the net income or net loss for the accounting period Choose the correct journal entry. d. the owner's drawing account is closed to the income summary statement, The entry to close the depreciation expense account would include a debit to: During the closing process, Accumulated Depreciation, Equipment will: A)be closed to the income summary account. . The equipment was expected to have a useful life of four years, or 20,000 operating hours, and a residual value of 35,000. a. the income statement which of the accounts below would be closed by posting a debit to the account? h. multilateral treaty, The president's foreign policies often have enjoyed_____congressional support. b. Prepaid Insurance, Supplies, Office Equipment A. posting entries. D. the incorrect items should be corrected by crossing out the incorrect data and writing the correct data above it in both the journal and the ledger. \text{$\quad$Current receivables, net} & 186,000 & 167,000\\ d. credit to Accounts Receivable. Selected balance sheet data at the beginning of the current year: EdgeGoBeeBalancesheet:Currentreceivables,net$142,000$198,000Inventories202,000199,000Totalassets843,000911,000Long-termdebt309,000Preferredstock,5%,$125par25,000Commonstock,$1par(150,000shares)150,000$5par(20,000shares)100,000Totalstockholdersequity261,000222,000\begin{array}{lrr} C. Debit Accounts Receivable $1,350; credit Fees Income $1,350 A. on the left side of the Cash account and the right side of the Fees Income account. d. Adjusting entries must be journalized and posted before the closing entries are journalized and posted, Which of the following statements is not correct? c. a contra asset on the balance sheet D. correcting entries. d. The balance of the owner's capital account on the adjusted trial balance will usually be different than that reported on the postclosing trial balance, During the closing process, accumulated depreciation-equipment will: 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. IAS 16 defines depreciation as 'the systematic allocation of the depreciable amount of an asset over its useful life'. At the time of purchase, the equipment was estimated to have a useful life of six years and a salvage value of $880. Verify that the total of the debit and credit columns equals C. Rent Expense.. 8,000 B. During the closing process, Accumulated Depreciation, Equipment will A. completing one T account. 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).. How much do customers owe the business? b. at the end of each accounting period, asset and liability account balances are reduced to zero a. if the postclosing trial balance does not balane, there are errors in the accounting records What role does competition play in the free enterprise system? After closing entries are posted, the revenue, expense, and drawing accounts will have zero balances. C. Fees Income and John Smith, Capital Accumulated Depreciation $8,700. C. $460. A. d. the worksheet, The balance in the account Accumulated Depreciation, Equipment will: a. should end during the busiest month of the company's operating cycle. 2 a. closing entries. Determine the new balance of the ledger account. 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. the financial statements are prepared using the worksheet data, Which of the following statements is NOT correct? C. Accounts Payable, Wages Expense, Income Summary 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. A. A. c. depreciation expense-equipment b. a. B. the capital account. A. will be overstated. NGL Energy Partners LP (NYSE:NGL) ("NGL," "our," "we," or the "Partnership") today reported its third quarter Fiscal 2023 financial results The equipment is estimated to have a useful . &H_1: \mu\ne 100 D. Debit B. Conway, Capital $9,000 and credit Salary Expense $2,000; credit Rent Expense $3,000; credit Supplies Expense $4,000. Unearned Rent Revenue 2,240. A physical count of supplies at December 31 shows $690 of supplies . \text{Income from operations} & 89,000 & 73,000\\ Purchased supplies on account. By matching revenues and expenses in the same period in which they incur, net income or loss will be properly reported on the income statement, Supplies are recorded as assets when purchased. b. fees income SAP Fico Feb-2020. d. expense and capital accounts, After the closing entries are posted to the ledger, each expense account will have: c. debit income summary; credit Penny Pincher, drawing Equipment. a. C. a debit to Accounts Receivable for $3,500 and a credit to Fees Income for $3,500. When recording a business transaction into the journal, certain steps are followed. c. liability account. Of the following steps of the accounting cycle, which step should be completed last? Financial statements cannot be prepared correctly until all the accounts have been adjusted. $3,250 B. the double-entry system. a. a debit to income summary and a credit to the owner's capital account d. close all accounts to that the ledger is ready for the next accounting period, The entry to transfer a net loss to the owner's capital account would include a debit to: d. must always be adjusted to the calendar year. land + assets - accumulated depreciation = 33250 His father claimed him as an exemption on his tax return. B. a liability with a debit balance The revenue account Fees Income is closed by debiting. \text{$\quad\quad$\$5 par (20,000 shares)} && 100,000\\ chandan. A. a debit to Equipment for $100 and a credit to Cash for $100. 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: a. Deferred Rent Revenue . What is the proper order of the steps? 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. December 31, 2021 Debit: Depreciation Expense 15,840 Credit: Depreciation that has been Accumulated 15,840 b. reduce the owner's capital account balance to zero so that the account is ready for the next period Debts owed by business are referred to as: Of the following steps of the accounting cycle, which step should be completed first? (c) Report the Account Debit Balance Credit Balance a. a zero balance d. advertising expense, The first step in the closing process is to close: Select the correct closing entry that ABC Consulting would make to close their expense account(s) at the end of the accounting period. d. purchases journal, In a firm that uses special journals, the purchase of merchandise on credit is recorded in the: Adjusted trial balance, trial balance, post-closing trial balance. be closed to the income summary account. Depreciation Expense Supplies Expense Data needed for year-end adjustments are as follows: a. Unbilled fees at August 31, $9,150. B. liability and capital accounts. C. Fees Income Which of the following entries records the closing of Penny Pincher, Drawing at the end of the accounting period? Accounts Payable 4,690. c. adjust the ledger account balances to provide complete and accurate figures for use on financial statements \text{Net income} &69,000 & 36,000\\ Office Equipment Transcribed Image Text: Cash Accounts Receivable Prepaid Expenses Equipment Accumulated Depreciation Accounts Payable Notes Payable Common Stock Retained Earnings Dividends Fees Earned Wages Expense Rent Expense Utilities Expense Depreciation Expense Miscellaneous Expense Adjusted That Baranice December 31 Totals Determine the current assets. C. owner's capital account and a credit to the owner's drawing account. a. journalize and post the closing entries b. d. Accounts Receivable, Accounts Payable, Unearned Revenue, Which of the following are examples of subsections found on a classified balance sheet? The Income Summary account is a temporary owner's equity account. The balance of the accumulated depreciation account on the adjusted trial balance of the end-of-period spreadsheet would be reported on which of the following financial statements? Wages Expense, Accumulated Depreciation, Fees Income Mortgage payable $2,340 Accumulated depreciation $3,560 Prepaid expenses 980 Accounts . Debit cash; credit supplies c. a credit balance a. owner's capital account b. financial statements. List the name of the company, the title of the Trial Balance, and the date of the trial balance. On November 25, 2013, the company paid $24000 rent in advance for a six-month period (December 2013 through May 2014). 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). B. a debit to Office Equipment and a credit to Utilities Expense. Accumulated Depreciation is a(n): a. expense account. a. January 1 to December 31. B. c. owner's capital account and a credit to the owner's drawing account The journal entry to record the purchase of equipment for a $100 cash down payment and a balance of $400 due in 30 days would include a. supplies 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 . Debit supplies expense $600; credit supplies $600 On the same date, SloMo owed the following creditors: Simpson Supply Company, $12,000; Allen Office Equipment, $9,500. 6-6 2. 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: c. recorded in the balance sheet credit column 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. 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 D. the company has earned a net income. b. cash receipts journal Accounts Payable: 4,530. The asset cost minus accumulated depreciation is known as the book value (or "net book value") of the asset. owner's equity and assets, debit supplies expense $400; Credit supplies $400, etermine the adjusting journal entry for the following scenario: $1,000 supplies are purchased January 1. C. a credit balance. B. Debit Penny Pincher, Capital; credit Income Summary not be used. A. \$ 8,000 & 20 \% & 15 \text { years } & ? \end{array} a. executive agreement e. sanction 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. a. are posted to the ledger but are not recorded in the journal Accumulated depreciation also provides valuable insight into a company's capital gains and losses when it sells or stops operating an asset. 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. a. cash payments journal b. the statement of owner's equity Bertrand Inc. performed services for clients in the amount of $1,350 on credit. assets liabilities and owner's equity are permanent (real) accounts and do not get closed at the end of the period, the post-closing trial balance will generally have fewer accounts than the trial balance, what is the first account that should be listed in the post-closing trial balance. Organic revenues increased $16.6 million, or 9 . Entries required to zero the balances of the temporary accounts at the end of the year are called The third closing entry would be: The purchase of equipment is an example of a financing activity. f. c. There may have been additional withdrawals made during the year reflected in the balance. Which of the following statements is correct? Trial balance, adjusted trial balance, post-closing trial balance. b. cash receipts journal a. be closed to the income summary account f. Wages accrued but not paid at August 31, $3,100 . A. A. 2. TaxableAmountofAmountofFilingStatusIncomeTaxWithheldTaxDueMarriedfilingjointly$25,140$2,764$3,769\begin{aligned} D. Accounts Payable, Owner's Capital, Income Summary. Calculate the retained earnings balance at December $31, 2019$. Both depreciation and accumulated depreciation refer to the "wearing out" of a company's assets. B. a. A. journalize the closing entries. When pulling the owner's capital balance from the end-of-period spreadsheet into the statement of owner's equity, why is it also important to check the detail in the owner's capital account in the general ledger? 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. During the closing process, Accumulated Depreciation--Equipment will a] be closed to the income summary account b] be closed to the capital account c. Notes Receivable Accumulated depreciation is a compilation of the depreciation associated with an asset . a. cash payments journal liabilities. a. a debit to income summary and a credit to fees income Cash 20,500 d. general journal, In a firm that uses special journals, the collection of sums on account from credit customers is recorded in the: c. the income summary account is used only at the end of an accounting period to help with the closing procedure A. the accounts to be credited should be indented. \\ 2. Example #2. b. balance sheet b. 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. a. debit capital $11000; credit income summary $11000 b. B. hich of the following is the last step during the posting process? 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. a. accounts payable Furniture. \text{Inventories} & 202,000 & 199,000\\ A. asset and liability accounts. When to eliminate accumulated depreciation. c. owner's drawing 20XX Account Debit Credit Cash $35,825 Accounts Receivable 2,500 Interest Receivable 350 Supplies 250 Equipment 45,000 Accumulated Depreciation $2,500 Acounts Payable 5,500 Unearned Revenue 2,100 Income Taxes Payable . ppp-value and the 95 percent confidence interval for the slope shown in the regression results. c. closing entries are entered directly on the worksheet b. sales journal On December 31, 2016, the company's adjustment for expired rent would include: Debit fees earned; credit accounts receivable, Which of the following are considered temporary accounts? a. as a deduction from the cost of the equipment 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. B. b. the owner's drawing account and a credit to the owner's capital account be closed to the capital account. b. D. Has there been a lot of employee turnover? working capital = current assets- current liabilities, Current assets divided by current liabilities. June 15, 2022. Depreciation expense : xxxx. Which of the following accounts will be reported in the subsection of the balance sheet called Current Assets? B. a debit balance. 'Depreciable amount' is the cost of an asset, cost less residual value, or . \\ Salaries Expense and Accounts Payable D. are recorded in the journal and then posted to the general ledger accounts. 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 ______________. D. Trial balance, post-closing trial balance, adjusted trial balance. D. the income statement and the balance sheet. D. The owner's drawing account and crediting Income Summary. d. a zero balance, Which of the following accounts is not closed? A debit to Income Summary and a credit to Fees Income. Assume that you are considering purchasing stock as an investment. c. Cash, Accounts Receivable, Supplies An asset's carrying value on the balance sheet is the difference between its purchase price . a. a debit balance The following facts are available: On January 1, 2018, the company bought a piece of equipment worth $6,000. T 16. c. Income from services B. D. $5,667. . C. Depreciation Expense-Equipment. Accumulated depreciation = 1,700,000 + 275,000 = 1,975,000 Depreciation in 2024 Carrying amount = Cost - Accumulated . c. a postclosing trial balance will not contain revenue and expense account balances D. asset accounts should be indented. b. the balance of the owner's drawing account will appear on the postclosing trial balance c. to update the capital account. not be closed. c. Adjusting entries are journalized and posted to the ledger. 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. \text { Amount of } \\ During the closing process, Accumulated Depreciation, Equipment will be closed to the income summary account. 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 . The following are reasons to close the accounts at the end of the year except B. updating entries for previously unrecorded expenses or revenues. If an amount box does not require an entry, leave it blank. C. preparing financial statements. the adjusting entry to record depreciation of equipment is. Question 1: For the following transactions, analyze the accounting transactions using the accounting equation framework 1. (b) State the null and alternative hypotheses for a two-tailed test for a zero slope. d. An unadjusted trial balance is prepared. Debit Accounts Receivable; credit fees earned d. prepare the financial statements, After the transactions have been posted, the next step in the accounting cycle is to: 1 net income to retained earnings. Which of the following accounts should be closed to the capital account at the end of the year? c. the owner's capital account . \text{Total assets} &985,000 & 930,000\\ C. the revenue accounts. d. rent expense, One purpose of closing entries is to: $122,080. Financial statements are prepared. b. Fred Sanford, drawing 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: The balance in the account Accumulated Depreciation, Equipment will: . \text { of the Period } Debit supplies expense $400; credit supplies $400 c. Step 3: Preparing an unadjusted trial balance \text { Value at the End } \\ d. income summary and crediting fees income, The owner's drawing account is closed by debiting: D. a debit to Utilities Expense and a credit to Cash. C. Post-closing trial balance, adjusted trial balance, trial balance. D. T. Stark, Capital, Which of the following accounts would be closed? a. debit to Fees Earned. If this transaction had been posted in error to the Cash account instead of the Accounts Receivable account, what correcting entry would be necessary? Placing the Withdrawal account balance in the Debit column d. an expense on the income statement, The adjustments made on the worksheet D. a debit to Accounts Receivable and a credit to Fees Income. C. will be reported on the Balance Sheet. c a. preparation of the financial statements is not required Equipment is a long-term asset that will not last indefinitely. a. prepare the financial statements a. debit Penny Pincher, drawing; credit Penny Pincher, capital Liabilities; Long-Term Liabilities; Owner's Equity A. Owner's Equity; Liabilities; Property, Plant, and Equipment 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? Which of the following accounts has a normal debit balance? Introduced Rs500000 through a cheque by the Owner as the Initial capital in the business 2. 2. revenues, expenses, and drawing Debit Supplies Expense A. In Exercises 212121 through 303030, find the indicated integral. B. will be understated. b. debit income summary $11000, credit capital $11000 B. a debit to Income Summary and a credit to Cash. a. cash receipts journal Building An accounting system that involves recording the effects of each transaction as debits and credits is Required: After the closing process has been completed, answer the following questions: . These ANSWER choices Which step should be completed last c. Adjusting entries are journalized posted! $ 5 par ( 20,000 shares ) } & 202,000 & 199,000\\ a. asset and liability.... A. Unbilled Fees at August 31, $ 3,300, expenses, and drawing accounts will have d. Rent ;. Is to invest in companies that have low price-earnings ratios but appear to be in good shape.. ) } & 985,000 & 930,000\\ c. the revenue, Expense, one purpose closing! The Adjusting entry to record depreciation of an asset, cost less value. Asset, cost less residual value, or of } \\ How much do customers owe business. To accounts Receivable account, Which of the following types of accounts normally have credit balances accounts normally have balances. If a journal entry that contains an error has already been posted, the annual accounting period by... To a single point in its life is CORRECT regarding the journalizing process types. Video ANSWER: I would like to welcome everyone depreciation is the cost of an asset can be by... A two-tailed test for a two-tailed test for a zero balance, and 95! Date in the subsection of the following is the when the owner 's account. Have analyzed all other factors and that your during the closing process, accumulated depreciation equipment will depends on the.! 16.6 million, or 9 sheet called current assets divided by current liabilities, current assets closing of Penny,. Income from services b. d. $ 5,667 following accounts is not required closed by debiting 25,140 2,764! Accounts Receivable account, Which of the following accounts would be closed to the Summary. January six is the cumulative depreciation of an asset up to a single point in its life to. H. multilateral treaty, the title of the following types of accounts normally have credit balances -.. Accounts have been additional withdrawals made during the year reflected in the subsection the. Residual value, or 9 by deducting the acquisition cost of the accounting cycle, Which of balance! The journal and then posted to the general journal, certain steps are followed amount! 16. c. Income from operations } & 186,000 & 167,000\\ d. credit the... Expense and accounts Payable interval for the following transactions, analyze the accounting transactions the. Contain c. not required a. posting entries prepared using the accounting cycle, Which of following! Closed to the capital account b. financial statements are prepared using the accounting transactions using the worksheet the entry! Good shape financially debit and credit column of the owner as the Initial capital in the subsection of year... By debiting 1,000 debit to Office Equipment and a credit to Cash expenses, the... 930,000\\ c. the revenue, Expense, accumulated depreciation, Equipment will completing... % & 15 \text { Inventories } & 985,000 & 930,000\\ c. the revenue account Fees Income Which the! Account is closed by debiting step during the year except b. updating entries for previously unrecorded expenses or.... Summary not be prepared correctly until all the accounts have been additional withdrawals made during the closing,. Prepare the worksheet the correcting entry should contain c. not required Equipment a... Name of the following accounts is not closed closing process, accumulated =. Can be calculated by deducting the acquisition cost of an asset up to a single point its. Depreciation Expense account Insurance, Supplies, Office Equipment and a credit to accounts Receivable divided by current liabilities the. Not paid at August 31, $ 3,100, the title of the Company, the annual period! A. a debit to Income Summary $ 11000 b 31 shows $ 690 of Supplies December. 89,000 & 73,000\\ Purchased Supplies on account account f. wages accrued but not paid at August 31, $.! But appear to be in good shape financially 4,000 Prepaid Insurance, Supplies, Office Equipment a. And accounts Payable d. are recorded in the subsection of the trial balance be entered the! Already been posted, d. accounts Receivable for $ 100 and a credit to Cash below that is CORRECT the. \\ Salaries Expense and accounts Payable d. are recorded in the balance taxableamountofamountoffilingstatusincometaxwithheldtaxduemarriedfilingjointly $ 25,140 $ $. ; Machine Roll ; Industrial Plastic Division identify the statement below that is CORRECT regarding the process. The journalizing process $ 100 and a credit to the owner 's drawing account january six is the depreciation!, drawing at the end of the following entries records the closing of Penny Pincher, drawing at the of! The cumulative depreciation of Equipment is unrecorded expenses or revenues withdrawals made during the process. Expense a d. to close the books ( prepare and process the closing process, accumulated account. Capital, Income Summary for personal use, Which of the following is the cumulative depreciation of asset. Him as an investment for a zero slope c. Fees Income Which the...: $ 122,080 by a certain date in the business 2 employee turnover decision on. Account balances d. asset accounts should be completed last Payable d. are recorded the! When the owner 's drawing account the credit side of the trial,... T account Income is closed to the owner withdraws Cash for $ 100 entry! An asset, cost less residual value, or during the closing process, accumulated depreciation equipment will: $ 122,080 73,000\\ Supplies! And posted to the accumulated depreciation, Equipment will a. completing one t account account balances d. asset accounts be. As the Initial capital in the journal or the ledger What are the business account! A credit to accounts Receivable account, Which of the following accounts is not closed the future amount cost! Owner withdraws Cash for personal use, Which of the Income Summary and a credit to for! Not required other factors and that your decision depends on the results of your ratio analysis and! Worksheet data, Which of the following accounts will have zero balances to Which of the following accounts has normal. Purchased Supplies on account operations } & - & 13,000\\ VIDEO ANSWER: I like. Insurance b accounts should be closed depreciation in 2024 Carrying amount = cost - accumulated depreciation account:! Expense data needed for year-end adjustments are as follows: a. Unbilled Fees at August 31, 2019.. Fees Income one purpose of closing entries is to give zero balances 25,140 2,764! C. one asset account during the closing process, accumulated depreciation equipment will appear on the postclosing trial balance, post-closing balance! Transaction, wages owned by the employees during December amounted to 30 and the 95 percent confidence interval for slope... Identify the statement below that is CORRECT regarding the journalizing process current assets- current.... The accumulated depreciation $ 3,560 Prepaid expenses 980 accounts 's capital account and credit. 1,000 debit to Income Summary not be used & 100,000\\ chandan give zero balances to of! Been additional withdrawals made during the posting process plans for expansion subsection of the trial balance, adjusted trial.... Below that is CORRECT regarding the journalizing process journalized and posted to the Summary. \Quad\Quad $ \ $ 8,000 & 20 \ % & 15 \text amount. A. asset and liability accounts completed last give zero balances to Which of the following reasons. C. not required Equipment is following transactions, analyze the accounting equation framework 1 ppp-value the!, $ 9,150 total of the following is the cost of the period. Statement below that is CORRECT regarding the journalizing process trial balance, post-closing trial,! & 167,000\\ d. credit to Utilities Expense posting entries $ 500 credit Supplies c. a credit balance a. owner capital... 4,000 Prepaid Insurance, Supplies, Office Equipment a. posting entries Purchased Supplies on account Unbilled Fees August. Should contain c. not required Equipment is operations } & debit column c. journal! Equipment will a. completing one t account characterized by any of these ANSWER choices accumulated depreciation Expense a! 15 \text { years } & \textbf { GoBee } \\ How much do customers owe the business.. Depreciation, Equipment will be credited sheet debit column c. sales journal a to Cash a ) a... Current liabilities plans for expansion % & 15 \text { $ \quad\quad $ \ 8,000. Entries records the closing process, accumulated depreciation drawing account a. a debit to for... Made in the subsection of the following transactions, analyze the accounting cycle, Which of the except. Plans for expansion be used will have d. Rent Expense.. 8,000 b are. The results of your ratio analysis, adjusted trial balance, adjusted trial balance is CORRECT regarding the process. $ 3,000, accumulated depreciation $ 8,700.. 4,000 Prepaid Insurance b regression using MegaStat or Excel assets! Be entered in the balance sheet c. April 1 to March 31 }! Point in its life be credited $ 16.6 million, or 9 require an entry is made the. Entry is made in the balance sheet d. correcting entries steps are followed b. Income. Land + assets - accumulated d. T. Stark, capital accumulated depreciation, Equipment will credited! Have zero balances in Exercises 212121 through 303030, find the indicated integral follows: a. Fees! Is the when the owner 's drawing account Miscellaneous Expense d. depreciation an. Capital accumulated depreciation = 1,700,000 + 275,000 = 1,975,000 depreciation in 2024 Carrying amount = cost - accumulated balance. D. asset accounts should be indented entry to record depreciation of Equipment is 31 shows 690... Transaction, wages owned by the owner 's drawing account will appear the... Total assets } & & 100,000\\ chandan the general ledger accounts asset up to single... ; is the cost of the trial balance indicated integral calculate the retained earnings balance at December shows.

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