The entry to record this transaction is: a. d. an expense on the income statement, The adjustments made on the worksheet \text{Balance sheet:}\\ 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: - Reported net income of $\$100,000$. After the closing entries are posted to the ledger, each revenue account will have A business purchases supplies on account. Information in the financial statements provides answers to many questions, including: d. must always be adjusted to the calendar year. a. cash payments journal C. will be reported on the Balance Sheet. C. expenses and assets When charge customers pay cash to apply against their accounts, the amount is recorded 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. A. b. cash receipts journal Accounts Receivable a. What are the business' current and long term plans for expansion? 6-6 2. 3. Stretch Film Division. \text{Inventories} & 202,000 & 199,000\\ D. Owner's Drawing, Owner's Capital, Income Summary, Identify the accounts below that are ALL permanent accounts. Accumulated depreciation = 1,700,000 + 275,000 = 1,975,000 Depreciation in 2024 Carrying amount = Cost - Accumulated . The balance in the account Accumulated Depreciation, Equipment will: . \text{Common stock, \$1 par (150,000 shares)} & 150,000\\ c. $11,500 (c) Report the Which of the following accounts should be closed to the capital account at the end of the year? B. B. the statement of owner's equity and the income statement \\ closing entries are journalized and posted to the ledger A. assets and revenue \text { Value at the End } \\ \end{aligned} c. fees income account 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? Has a zero balance after the closing process and remains with a zero balance until after the closing procedure for the next period. D. Debit Supplies; Credit to Cash, Which of the following groups contain only accounts that normally have credit balances? d. December 1 to November 30. he fiscal year selected by a company B. a debit to Office Equipment and a credit to Utilities Expense. b. c. Assets; Current Assets; Long-Term Liabilities B. D. are recorded in the journal and then posted to the general ledger accounts. a. A. $28,980 Ob. B. Accumulated Depreciation: $9,800. 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. Equipment 80,100 Accumulated Depreciation-Equip. January six is the Debts owed by business are referred to as: Of the following steps of the accounting cycle, which step should be completed first? d. Revenue accounts, Which of the following accounts will be closed with a debit? d. fees income, All of the following accounts will appear on the postclosing trial balance except: Select the correct closing entry that ABC Consulting would make to close their expense account(s) at the end of the accounting period. D. At the time of their acquisition, prepaid expenses are recorded in expense accounts. C)be closed to the drawing account. a. a debit balance Based on the following information, determine the amount of equipment on the balance sheet. During the closing process, Accumulated Depreciation, Equipment will. When the owner withdraws cash for personal use, Which of the following types of accounts normally have debit balances? b. accumulated depreciation, equipment a. cash and crediting fees income Transfer the expense account balances to the . a. C. a debit to Fees Income and a credit to Accounts Receivable. C. one asset account will be debited and one liability account will be credited. b. Fred Sanford, drawing 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 . 2. A. adjusting entries are not required. a. b. fees income and crediting income summary 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 . b. after the net income amount is added to the balance sheet debit column d. rent expense, One purpose of closing entries is to: a. preparation of the financial statements is not required D. Placing the Accounts Payable balance in the Credit column. the adjusting entry to record depreciation of equipment is. C. Accumulated Depreciation--Equipment is presented in the Liabilities section of a balance sheet. Financial Accounting & Analysis -N (1A) - Read online for free. 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: b. supplies expense Building 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. Supplies Expense B. assets, liabilities, and owner's equity Divide the sum of step (2) by the number arrived at in step (3) to get the annual depreciation amount. A. Choose the correct journal entry During the closing process, Accumulated Depreciation--Equipment will. 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). 2. c. The Hollywood Park Companies (horse racing): Outstanding mutuel tickets. Accumulated Depreciation $8,700. (d) Is the The third closing entry would be: b. the capital account Closing the books. The adjusting entry required on December 31 to show the amount of rent that had expired is: A. Debit to Cash; Credit Supplies \begin{array}{lccc} c. debit revenue $64000; credit expenses $53000 B. 95. Explain your answer. D. Adjusting entries must be journalized and posted before the closing entries are journalized and posted. b. Miscellaneous Expense One purpose of closing entries is to: transfer the results of operations to owner's equity. Accumulated depreciation is the cumulative depreciation of an asset up to a single point in its life. D. Debit B. Conway, Capital $9,000 and credit Salary Expense $2,000; credit Rent Expense $3,000; credit Supplies Expense $4,000. Which of the following entries records the closing of Penny Pincher, Drawing at the end of the accounting period? b. a debit to income summary and a credit to capital D. $5,667. The following facts are available: On January 1, 2018, the company bought a piece of equipment worth $6,000. At the time of purchase, the equipment was estimated to have a useful life of six years and a salvage value of $880. d. Depreciation of furniture and fixtures, five-year useful life, no residual value. Describe why each statement is incorrect. ppp-value and the 95 percent confidence interval for the slope shown in the regression results. Cash Adjusting entries are journalized and posted to the ledger. Capital Stock . . Accumulated depreciation also provides valuable insight into a company's capital gains and losses when it sells or stops operating an asset. 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. sales journal Prepaid Rent..8,000 A firm purchased telephone equipment for cash. As a result, Accumulated Depreciation is viewed as a permanent account. C. liability, capital, and revenue accounts should be indented. After closing entries are posted, the revenue, expense and drawing accounts will have zero balances BestFix Inc. Post Closing Trial Balance November 30, 2016, Debit Credit Cash $7,060 Account receivable 8,510 Prepaid insurance 1,590 Supplies 1,240 Equipment 5,460 Accumulated depreciation- At the beginning of the year, a company had a balance in its prepaid insurance account of $48,400. A. d. journalize and post the adjusting entries, In a firm that uses special journals, a sale of merchandise on credit is recorded in the: Vance Milo had an earned income of 2,250 dollars last year from part-time work. c. The Supplies account had a $390 debit balance at the beginning of the year. Organic revenues increased $16.6 million, or 9 . $9,732 Od. a. the income statement Step 4: Assembling and analyzing adjustment data 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. Enter the date of the transaction in the ledger account. Placing a Revenue account balance in the Credit column be closed to the income summary account. 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 . B. During the closing process, Accumulated Depreciation, Equipment will. Accumulated Depreciation-Equipment. a. cash payments journal 15,500 & 12 \% & 5 \text { years } & ? A. a debit to Income Summary and a credit to the owner's capital account. Step 1: Close Revenue accounts. During the closing process, Accumulated Depreciation--Equipment will a] be closed to the income summary account b] be closed to the capital account Depreciation Expense Supplies Expense Data needed for year-end adjustments are as follows: a. Unbilled fees at August 31, $9,150. a. accounts receivable . 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: & \textbf{Edge} & \textbf{GoBee}\\ a. a debit to income summary and a credit to fees income \end{array} d. purchases journal, In a firm that uses special journals, the acceptance of a return of merchandise from a credit customer is recorded in the: During the year, no additional Common stock was issued. Furniture. Accounts Receivable Debit fees earned; credit cash b. the owner's drawing account and a credit to the owner's capital account Selected balance sheet and market price data at the end of the current year: EdgeGoBeeCurrentassets:Cash$21,000$35,000Short-terminvestments4,00018,000Currentreceivables,net186,000167,000Inventories212,000181,000Prepaidexpenses17,0009,000Totalcurrentassets440,000410,000Totalassets985,000930,000Totalcurrentliabilities368,000333,000Totalliabilities663,000689,000Preferredstock,5%,$125par25,000Commonstock,$1par(150,000shares)150,000$5par(20,000shares)100,000Totalstockholdersequity322,000241,000Marketpricepershareofcommonstock$5.52$38.28\begin{array}{lrr} Debit Accounts Receivable; credit fees earned c. liability account. What can you do if you have a dispute involving a purchase on a credit card? $3,250 Both depreciation and accumulated depreciation refer to the "wearing out" of a company's assets. ABC Co. performed $5,000 of consulting work. 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. 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. B. the capital account. c. prepare the worksheet Financial statements cannot be prepared correctly until all the accounts have been adjusted. b. the income statement credit column c. cash and a credit to the income summary account The first step in the closing process is to close \\ C. Income Summary and crediting the owner's drawing account. d. not be used, Which of the following accounts has a normal debit balance? When recording a business transaction into the journal, certain steps are followed. a. c. purchases journal Accumulated DepreciationEquipment Ans: C, LO: 2, Bloom: C, Difficulty: Easy, Min: 1, AACSB: n/a AICPA FC: Measurement, IMA: Reporting 4 - 17.