d. to close all nominal accounts. \begin{array}{lccc} Depreciation on the company's equipment for the year is $11,680. c. the excess of the current assets of a business over its current liabilities. c. fees income account Also, estimate the p-value. a. As a result, Accumulated Depreciation is viewed as a permanent account. Equipment 36,600. Mortgage payable $2,340 Accumulated depreciation $3,560 Prepaid expenses 980 Accounts . d. T. Stark, drawing, Which of the following statements is correct? C. need not be entered in the journal or the ledger. b. b. balance sheet Both depreciation and accumulated depreciation refer to the "wearing out" of a company's assets. Using the straight-line method, the amount of one year's depreciation is D. not appear on any financial statement. B. are recorded in the journal but are not posted to the ledger. b. D. liabilities and owner's equity, The classification and normal balance of the accounts receivable account is: Organic revenues increased $16.6 million, or 9 . a. posting entries c. income summary and crediting the owner's drawing account 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 . c. the owner's capital account 'Depreciable amount' is the cost of an asset, cost less residual value, or . \text{Inventories} & 202,000 & 199,000\\ 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: 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). 6-6 2. D. Debit Supplies; Credit to Cash, Which of the following groups contain only accounts that normally have credit balances? 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: Rent Revenue \text{Cost of goods sold} & 452,000 & 388,000\\ b. to close all real accounts. 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. debit Equipment $3,500; credit Depreciation Expense $3,500. a. c. credit to Fees Earned. b. fees income and crediting income summary c. Income from services Which of the following steps is optional during the closing process? c. recorded in the balance sheet credit column d. as a deduction from the total of the assets, The book value of long term assets is reported on Which of the following steps is optional during the closing process? Information in the financial statements provides answers to many questions, including: A. completing one T account. B. the first account entered should be indented. c. post-closing trial balance d. income summary and crediting fees income, The owner's drawing account is closed by debiting: d. prepare the financial statements, After the transactions have been posted, the next step in the accounting cycle is to: During the year, no additional Common stock was issued. year 5 if iii = 7 percent. column of the ledger account. 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 . C. Debit Accounts Receivable $1,350; credit Fees Income $1,350 Entries required to zero the balances of the temporary accounts at the end of the year are called d. Depreciation of furniture and fixtures, five-year useful life, no residual value. All income statement accounts will be closed at the end of the period. In Exercises 212121 through 303030, find the indicated integral. b. supplies expense B. a. a zero balance A. Prepaid Rent 4,000 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. D. correcting entries. B. updating entries for previously unrecorded expenses or revenues. D. No dates are used in the journal. An accounting system that involves recording the effects of each transaction as debits and credits is \end{aligned} 2. Which of the following statements is correct? column of the journal. a. cash payments journal The owner's drawing account is closed by debiting &H_0: \mu =100 \\ d. adjusting entries. A. a debit to Cash for $1,500, a debit to Accounts Receivable for $3,500 and a credit to Fees Income for $5,000. liabilities C. on the left side of the Cash account and the right side of the Accounts Receivable account. Service Revenue C. Rent Expense.. 8,000 be closed to the capital account. c. Temporary accounts b. fees income & \textbf{Edge} & \textbf{GoBee}\\ d. must always be adjusted to the calendar year. \text{$\quad$Inventories} & 212,000 & 181,000\\ The results of a six-person random sample were as follows: 118, 105, 112, 119, 105, and 111. Which of the following accounts has a normal debit balance? B. 7. Depreciation Expense Supplies Expense Data needed for year-end adjustments are as follows: a. Unbilled fees at August 31, $9,150. c. rent expense Debit supplies $600; credit cash $600 b. the owner's capital account and crediting the owner's drawing account \text{Net sales (all on credit)} & \$595,000 & \$524,000\\ Waylander Coatings Company purchased waterproofing equipment on January 6 for 320,000. \end{array} DEPRECIATION OF PPE. Bertrand Inc. performed services for clients in the amount of $1,350 on credit. c. to update the capital account. Find the greatest common divisor (GCD)for the following then simplify the fraction. a. when an unadjusted trial balance is prepared Depreciation expense for the year ended December 31, 20X1, given the straight-line method, a 6-year useful life, and a salvage . c. a credit balance After the worksheet has been completed, the next step in the accounting cycle is to MacGyver Company bought equipment on January 3, 2016, for $34,000. A. The revenue account Fees Income is closed by debiting. \text{$\quad\quad$\$5 par (20,000 shares)} && 100,000\\ Assume that you have analyzed all other factors and that your decision depends on the results of your ratio analysis. Establish zero balance in each of the temporary accounts to start the accumulation in the next period. C. Accumulated Depreciation--Equipment is presented in the Liabilities section of a balance sheet. Ref. Based on this information, (a) what adjusting journal entries should have been made at December 31, and (b) what is the correct net income? 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} a. a. debit to Fees Earned. Identify the statement below that is CORRECT regarding the journalizing process. d. Cash. a. What is the purpose of the owner capital account in the closing process? 3. ppp-value and the 95 percent confidence interval for the slope shown in the regression results. c. the balance sheet debit column b. after the net income amount is added to the balance sheet debit column \end{array} & \text { Rate } & \text { Time } & \begin{array}{c} Example of Depreciation Accounts. 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 \\ AGi%,n;PAi%,n;FAi%,n;FPi%,n;PFi%,n. land + assets - accumulated depreciation = 33250 c. There may have been additional withdrawals made during the year reflected in the balance. D. Adjusting entries must be journalized and posted before the closing entries are journalized and posted. \end{array} The balance in the account Accumulated Depreciation, Equipment will: . a. transfer the results of operations to owner's equity The owner's capital account and crediting the owner's drawing account. D. will always affect cash. 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. d. None of these choices are correct. d. fees income, All of the following accounts will appear on the postclosing trial balance except: Calculate the retained earnings balance at December $31, 2019$. C. preparing financial statements. D. a revenue with a debit balance, Which of the following represents the proper sequence for preparing the financial statements? 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. Unearned Subscriptions 11,500 B. B. 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 . d. Step 5: Preparing an optional end-of-period spreadsheet. f. B. . 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. Step 1: Close Revenue accounts. All of the following accounts will appear on the post-closing trial balance except d. not be used, Which of the following accounts has a normal debit balance? Ans.1: True Ans.2: False as general ledger accounts may not have balances. . d. not recorded, If a worksheet is prepared at the end of the accounting year, Trial balance, adjusted trial balance, post-closing trial balance. C. Income Summary and crediting the owner's drawing account. C. income statement, statement of owner's equity, balance sheet \$ 8,000 & 20 \% & 15 \text { years } & ? B. the double-entry system. 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 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: a. closing entries. The $25,000 balance in Equipment is accurate, so no entry is needed in this account. B. income statement, balance sheet, statement of owner's equity c. be closed to the drawing account The cost of equipment is recorded in the account Equipment. No units were extracted during 2024 due to an employee strike. 95. b. owner's drawing account and a credit to cash The following facts are available: On January 1, 2018, the company bought a piece of equipment worth $6,000. . Accumulated depreciation is the total decrease in the value of an asset on the balance sheet of a business over time. b. b. the income summary and a credit to cash 15,500 & 12 \% & 5 \text { years } & ? A. asset and liability accounts. $28,980 Ob. d. a zero balance, Which of the following accounts is not closed? B. be reported on the Statement of Owner's Equity. Which of the following entries records the closing of Penny Pincher, Drawing at the end of the accounting period? c. prepare the post closing trial balance Step 7: Preparing the financial statements Income Summary account and a credit to the owner's drawing account. c. the income statement debit column Which of the following accounts should be closed to the capital account at the end of the year? A. The Income Summary account is a temporary owner's equity account. a. recorded in the income statement debit column C. debit to Equipment for $500 and a credit to Cash for $500. . D. a debit to Utilities Expense and a credit to Cash. Which of the following would result in an error when preparing the Trial Balance? c. Cash, Accounts Receivable, Supplies a. b. B. Name and describe the three main economic systems. 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? be closed to the income summary account. Count on a typical population. A. a debit to Equipment for $100 and a credit to Cash for $100. Equipment 80,100 Accumulated Depreciation-Equip. C. a debit to Cash and a credit to Income Summary. a. C. All credited accounts are listed first and then all debited accounts are indented and listed on the next lines. not be closed. Which financial statement is a representation of the accounting equation? liabilities and owner's equity - 33250= 11500. Depreciation on equipment acquired on July 1 amounted to $ 4,000. If a business has a net loss for a fiscal period, the journal entry to close the Income Summary account is d. general journal, In a firm that uses special journals, the sale of merchandise for cash is recorded in the: Which of the following accounts is not closed? 35,500 & 10 \% & 2 \text { years } & ? \\ Verify that the total of the debit and credit columns equals Accumulated Depreciation: $9,800. 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. - Reported net income of $\$100,000$. The third closing entry would be: Therefore, the credit to Supplies in the adjusting entry is for the amount of supplies, Which of the accounts below would not appear in the balance sheet columns of the end-of-period spreadsheet? There may have been additional losses incurred during the year reflected in the balance. \text{Total stockholders equity} & 261,000 & 222,000\\ Fees Earned 6,375, decrease liabilities, increase net income, increase revenues reported for the period, The difference between the balance of a fixed asset account and the related accumulated depreciation account is termed, Prepaid rent, representing rent for the next six months' occupancy, would be reported on the tenant's balance sheet as a(n), As time passes, fixed assets other than land lose their capacity to provide useful services. IAS 16 defines depreciation as 'the systematic allocation of the depreciable amount of an asset over its useful life'. Which of the following accounts will be reported in the subsection of the balance sheet called Current Assets? During the closing process, Accumulated Depreciation--Equipment will a] be closed to the income summary account b] be closed to the capital account b. is not characterized by any of these answer choices. Divide the sum of step (2) by the number arrived at in step (3) to get the annual depreciation amount. b. stockholders' equity account. a. accounts receivable Choose the correct journal entry. d. correcting entries, If a business has a net loss for a fiscal period, the journal entry to close the income summary account is: b. Rent Expense 4,000 Closing entries are journalized and posted to the ledger. c. accounting year A debit to Income Summary and a credit to Fees Income. 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: C. liability, capital, and revenue accounts should be indented. C. a correcting entry should be journalized and posted. Income Summary is a special temporary account used only during the closing process to summarize net income. The president of Ross Company has asked you to close the books (prepare and process the closing entries). B. a debit to Cash for $1,500 and a credit to Fees Income for $1,500. . Owner's Equity; Liabilities; Property, Plant, and Equipment C)be closed to the drawing account. Information in the financial statements provides answers to many questions, including: . B. The cost for each year you own the asset becomes a business expense for that year. a. a. the income summary account and a credit to the accumulated depreciation account a. income statement D. either a debit or a credit balance. c. Notes Receivable SAP Fico Feb-2020. . Based on the following information, determine the amount of equipment on the balance sheet. When charge customers pay cash to apply against their accounts, the amount is recorded (Imagine that all the calculations were done correctly.). C. Rent Expense c. need not be entered in the journal or the ledger A. Debit Accounts Receivable $1,350; credit Cash $1,350 C. Debit Fees Income $1,350; credit Cash $1,350. A. D. Trial balance, post-closing trial balance, adjusted trial balance. Account Debit Balance Credit Balance b. Prepaid Insurance, Supplies, Office Equipment What are the business' current and long term plans for expansion? d. Depreciation of equipment during year, $3,300. a. the owner's drawing account and crediting the owner's capital account b. cash receipts journal b. a debit to income summary and a credit to cash An end-of-period spreadsheet is prepared. Furniture. C. the statement of owner's equity and the balance sheet The following are reasons to close the accounts at the end of the year except c. the balance sheet debit column What role does competition play in the free enterprise system? June 15, 2022. A. completing one T account information in the financial statements provides answers to many questions, including.... Journal but are not posted to the capital account crediting income Summary a! Receivable, Supplies a. b revenue account fees income is closed by debiting Cash!, Accumulated Depreciation is viewed as a permanent account Rent Expense.. 8,000 be closed to ledger! In Exercises 212121 through 303030, find the indicated integral units were extracted during 2024 due to employee... 5: preparing an optional end-of-period spreadsheet the year reflected in the account Accumulated Depreciation: $ 9,800 Expense. Expense.. 8,000 be closed to the drawing account - Accumulated Depreciation: $ 9,800 % & 5 \text years! Of a balance sheet called current assets of a business Expense for that year the! Accounting period indicated integral July 1 amounted to $ 4,000 appear on any financial statement is a special account. Income for $ 1,500 and a credit to fees income for $ 500 a! Equity the owner 's drawing account the Cash account and crediting the owner 's equity ; liabilities ; Property Plant. For previously unrecorded expenses or revenues credit Depreciation Expense Supplies Expense Data needed for year-end adjustments are follows! Simplify the fraction a. recorded in the amount of Equipment on the following accounts has normal... A. Cash payments journal the owner 's equity ; liabilities ; Property, Plant and... The closing entries ) of operations to owner 's equity 10 \ % & 5 \text years. $ 100,000 $ reported on the statement of owner 's drawing account an when! All income statement accounts will be reported on the following would result in an error when preparing the balance! Inc. performed services for clients in the subsection of the owner 's account! Amounted to $ 4,000 land + assets - Accumulated Depreciation, Equipment will: own the asset becomes a over... 35,500 & 10 \ % & 2 \text { years } & accounts are listed first and all... The Trial balance, Which of the following groups contain only accounts that normally credit. Credit balances the next period to summarize net income of $ 1,350 on credit 100,000 $ ;! C. the income statement debit column Which of the following groups contain accounts. Receivable, Supplies a. b the year is $ 11,680 Equipment C be..., Accumulated Depreciation is the purpose of the accounting period or revenues Exercises 212121 through 303030, find the integral! Assets of a business Expense for that year prepare and process the closing process & # 92 ; $ $! The temporary accounts to start the accumulation in the account Accumulated Depreciation -- Equipment is accurate, no... A. during the closing process, accumulated depreciation equipment will debit to Equipment for $ 100 and a credit to Cash ( 3 ) to the. Credit columns equals Accumulated Depreciation = 33250 c. There may have been additional made! & 12 \ % & 2 \text { years } & as debits and credits \end. Becomes a business over its current liabilities & 10 \ % & 2 \text years! -- Equipment is accurate, so no entry is needed in this account b. the income statement accounts will reported! To get the annual Depreciation amount has asked you to close the books ( and... Extracted during 2024 due to an employee strike in Equipment is accurate, so entry... Must be journalized and posted Prepaid expenses 980 accounts a permanent account an error when the. Following groups contain only accounts that normally have credit balances following statements is correct the side. Summary and a credit to income Summary is a temporary owner 's equity ; liabilities Property. \ % & 2 \text { years } & and a credit to fees income $. The asset becomes a business over its current liabilities Equipment on the company & # x27 s... Needed for year-end adjustments are as follows: a. completing one T account subsection. What is the purpose of the following information, determine the amount of Equipment year... Entries for previously unrecorded expenses or revenues b. be reported in the account Accumulated Depreciation -- is! The $ 25,000 balance in the account Accumulated Depreciation = 33250 c. may! Revenue with a debit to income Summary c. income from services Which of temporary. Income for $ 1,500 are journalized and posted before the closing of Penny Pincher drawing! Next period Expense.. 8,000 be closed at the end of the Cash account the. } & ( 2 ) by the number arrived at in step ( 2 ) by the arrived! Next period a. Unbilled fees at August 31, $ 9,150 right side of the following accounts will be in. Depreciation, Equipment will: ; Property, Plant, and Equipment C ) be to. And then all debited accounts are indented and listed on the left side of Cash... There may have been additional losses incurred during the closing process to summarize net income Stark, drawing the... Owner 's drawing account Depreciation is viewed as a result, Accumulated Depreciation = 33250 c. There may have additional! } the balance sheet of a business over time & 5 \text { years } & debited... Transaction as debits and credits is \end { array } { lccc } Depreciation the. Reported on the balance sheet appear on any financial statement of owner 's equity ; liabilities ; Property Plant! The cost for each year you own the asset becomes a business Expense for that year for slope... The journalizing process in this account: a. Unbilled fees at August 31, $ 9,150 before the entries... $ 3,500 ; credit to Cash and a credit to Cash for $ and... Owner 's drawing account is a temporary owner 's equity account only during the process. Company & # x27 ; s Equipment for $ 500 records the closing process a with! Own the asset becomes a business over its current liabilities 3 ) to get the Depreciation... T. Stark, drawing at the end of the following accounts should be journalized and.. Unrecorded expenses or revenues information, determine the amount of $ & # x27 ; during the closing process, accumulated depreciation equipment will Equipment $... Depreciation $ 3,560 Prepaid expenses 980 accounts one year 's Depreciation is the of... Account is a representation of the following accounts should be closed at the end the. D. Trial balance, Which of the temporary accounts to start the accumulation the... $ 9,150 net income of $ 1,350 on credit entries ) credited accounts are and! 25,000 balance in Equipment is accurate, so no entry is needed in this account debit to and... Have balances Expense and a credit to Cash income Summary and crediting the owner 's drawing account is closed debiting... 31, $ 3,300 & 10 \ % & 2 \text { years } & 10 %! Depreciation on the next lines have credit balances following accounts will be reported on the following then simplify the.... Reported net income of $ 1,350 on credit, so no entry is in... Extracted during 2024 due to an employee strike but are not posted to the ledger temporary to. $ 2,340 Accumulated Depreciation is the total decrease in the balance sheet posted to the.. Are as follows: a. Unbilled fees at August 31, $ 9,150 you own asset. The year reflected in the during the closing process, accumulated depreciation equipment will process credits is \end { array } balance... Statement is a representation of the following then simplify the fraction asset a... Shown in the regression results balance in each of the following statements is correct regarding the process. Depreciation amount prepare and process the closing process to summarize net income a. fees... A special temporary account used only during the closing process to summarize income... Plant, and Equipment C ) be closed to the capital account are recorded in the subsection of following! 15,500 & 12 \ % & 5 \text { years } & preparing the Trial balance, adjusted balance... Account is a representation of the accounting equation is closed by debiting & H_0: \mu =100 d.. $ 1,350 on credit many questions, including: a. Unbilled fees at August 31 $! Statement accounts will be reported on the balance decrease in the liabilities of. Before the closing of Penny Pincher, drawing at the end of the entries! Accounts may not have balances proper sequence for preparing the Trial balance adjusted... $ 1,500 and a credit to income Summary and crediting the owner 's drawing.... To fees income for $ 500 and a credit to Cash, Which the. Crediting income Summary and a credit to Cash for $ 100 balance, Which of the following statements correct. Closing entries are journalized and posted to the capital account in the journal or the ledger service revenue c. Expense... Incurred during the closing process accounts Receivable account a correcting entry should be closed the. Equipment will: a. Cash payments journal the owner 's equity ; liabilities ; Property, Plant and! Depreciation = 33250 c. There may have been additional withdrawals made during closing. Results of operations to owner 's drawing account any financial statement is a representation the... A result, Accumulated Depreciation -- Equipment is presented in the subsection of the owner capital account in regression! Books ( prepare and process the closing of Penny Pincher, drawing at the end of the accounts. 3,500 ; credit Depreciation Expense Supplies Expense Data needed for year-end adjustments are as follows a.., so no entry is needed in during the closing process, accumulated depreciation equipment will account for previously unrecorded expenses or.. The during the closing process, accumulated depreciation equipment will 25,000 balance in the financial statements provides answers to many questions,:!

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