B. For example, if a company purchased a piece of printing equipment for $100,000 and the accumulated depreciation is $35,000, then the net book value of the printing equipment is $65,000. C. on the left side of the Cash account and the right side of the Accounts Receivable account. b. a debit to income summary and a credit to cash C. Debit Income Summary $9,000 and credit B. Conway, Capital for $9,000. f. d. Balance sheet credit column, On a worksheet, the adjusted balance of the revenue account fees income would be extended to: working capital = current assets- current liabilities, Current assets divided by current liabilities. B. assets, liabilities, and owner's equity d. the expense accounts, The first two closing entries to the income summary account indicate a debit of $53000 and a credit of $64000. The annual accounting period adopted by a business. Which of the following accounts should be closed to the capital account at the end of the year? a. accounts receivable \text{Market price per share of common stock} & \$\hspace{18pt}5.52 & \$\hspace{18pt}38.28\\ The purchase of equipment is an example of a financing activity. Coreless Stretch Film; Pre-Stretch Film; Hand Roll; Machine Roll; Jumbo Roll; Industrial Plastic Division. c. Temporary accounts VIDEO ANSWER: I would like to welcome everyone. Choose the letter of the correct term or concept below to complete the sentence. $15,878 Oc. d. None of these choices are correct. a. 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? AmountofInvestmentRateTimeValueattheEndofthePeriod$8,00020%15years?12,00015%10years?15,50012%5years?35,50010%2years?\begin{array}{|cccc|} \end{array} & \text { Rate } & \text { Time } & \begin{array}{c} Identify the statement below that is CORRECT regarding the journalizing process. assets, liabilities, owner's equity Debit supplies; Credit accounts payable B. a debit to Cash and a credit to Accounts Receivable. b. B. . All income statement accounts will be closed at the end of the period. a. asset and liability accounts d. the balance sheet credit column, On a worksheet, the adjusted balance of the supplies expense account is extended to: Using the straight-line depreciation sateesh konatam. 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. $3,250 owner's equity b. c. Rent expired, $5,000. TaxableAmountofAmountofFilingStatusIncomeTaxWithheldTaxDueMarriedfilingjointly$25,140$2,764$3,769\begin{aligned} 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. a. B. c. cash payments journal Step 7: Preparing the financial statements b. a reduction of capital on the statement of owner's equity Listed below are seven publicly owned corporations and a liability that regularly appears in each corporation's balance sheet: g. isolationism 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. cash receipts journal 1 net income to retained earnings. d. All of the above, The asset, liability and owner's capital accounts appear on all of the following except the: B. B. the capital account. Real accounts However, it is also reduced each year by the ever-growing accumulated depreciation. The equipment is estimated to have a useful . b. the balance sheet credit column b. the adjusting entry to record depreciation of equipment is. \text{Total assets} &985,000 & 930,000\\ C. Rent Expense.. 8,000 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. a. a debit to income summary and a credit to the owner's capital account d. as a deduction from the total of the assets, The book value of long term assets is reported on Find the greatest common divisor (GCD)for the following then simplify the fraction. 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 journal entry to record cash received from clients on account would include a C. one asset account will be debited and one liability account will be credited. Ref. Service Revenue The $25,000 balance in Equipment is accurate, so no entry is needed in this account. b. accumulated depreciation \text{Total stockholders equity} & 322,000 & 241,000\\ . d. prepare the financial statements, After the transactions have been posted, the next step in the accounting cycle is to: There may have been additional losses incurred during the year reflected in the balance. Oa. B. b. the adjusting entries do not need to be journalized. D. Debit Penny Pincher, Capital; credit Penny Pincher, Drawing, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Don Herrmann, J. David Spiceland, Wayne Thomas, Daniel F Viele, David H Marshall, Wayne W McManus, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield. c. fees income account C. Rent Expense (1) Generally Accepted Accounting Principles in the United States. a. as a deduction from the cost of the equipment 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. sin(2t)dt. 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? Accumulated depreciation is a compilation of the depreciation associated with an asset . What role does competition play in the free enterprise system? Which of the following entries records the closing of Penny Pincher, Drawing at the end of the accounting period? An end-of-period spreadsheet is prepared. A. A written promise that a customer will pay a fixed amount of principal plus interest by a certain date in the future. D. prepare the financial statements. c. the excess of the current assets of a business over its current liabilities. \text{Married filing jointly } &&&& \$25,140 & \$2,764 & \$3,769\\ Introduced Rs500000 through a cheque by the Owner as the Initial capital in the business 2. Equipment. Debit accounts payable; credit supplies, debit accounts receivable; credit fees earned, Smith, Inc. earned revenue on account. At the time of purchase, the equipment was estimated to have a useful life of six years and a salvage value of $880. b. the excess of the property, plant, and equipment of a business over its long-term liabilities. Accumulated depreciation also provides valuable insight into a company's capital gains and losses when it sells or stops operating an asset. b. D. At the time of their acquisition, prepaid expenses are recorded in expense accounts. The cost for each year you own the asset becomes a business expense for that year. d. preparation of the postclosing trial balance is the last step in the end of period routine, Information in the financial statements provides answers to many questions including: Salaries Expense and Accounts Payable $6,624 6,862 . The entry to record this transaction is: transactions are posted to the ledger All transactions are recorded first in the general ledger and then they are journalized in the journal. B. the double-entry system. c. April 1 to March 31. d. are recorded in the journal and then posted to the general ledger accounts, One purpose of closing entries is to give zero balances to: B)not be closed. a. The Statement of Owner's Equity is calculated as follows: At the end of the first month of operations for SloMo Delivery Service, the business had the following accounts: Accounts Receivable, $1,200; Prepaid Insurance, $500; Equipment, $36,200 and Cash, $40,650. 3. B. adjusting entries. a. On November 25, 2013, the company paid $24000 rent in advance for a six-month period (December 2013 through May 2014). C. Placing the balance in Prepaid Rent in the Credit column 15,500 & 12 \% & 5 \text { years } & ? Verify that the total of the debit and credit columns equals A. the accounts to be credited should be indented. \text{Current receivables, net} & \$142,000 & \$198,000\\ \text { Amount of } \\ fixed assets, include land and assets that depreciate over period of time (equipment, machinery, building), balance sheet that is expanded by adding subsection for assets and liabilities, assets commonly divided into 2 sections on balance sheet, current assets and property, plant and equipment, liabilities divided into 2 sections on balance sheet, accounts that are relatively permanent from year to year. Assume a company has equipment which is used in its business. c. be closed to the drawing account Owner's Equity; Liabilities; Property, Plant, and Equipment Choose the correct journal entry. a. the excess of the current liabilities of a business over its current assets. Which of the following accounts is not closed? A. C. the revenue accounts. Financial statements are prepared. To make them zero we want to decrease the balance or do the opposite. land + assets - accumulated depreciation = 33250 A. the drawing account. c. Cash, Accounts Receivable, Supplies a. preparation of the financial statements is not required Subtract the estimated salvage value of the asset from the cost of the asset to get the total depreciable amount. Transfer the expense account balances to the . b. balance sheet C. a $24,000 debit to Rent Expense. Question 1: For the following transactions, analyze the accounting transactions using the accounting equation framework 1. d. not be used, Which of the following accounts has a normal debit balance? Depreciation accounts for an expense on an asset over time, it has nothing to do with the decrease in value of an asset. Select the correct closing entry that ABC Consulting would make to close their expense account(s) at the end of the accounting period. The following facts are available: On January 1, 2018, the company bought a piece of equipment worth $6,000. \end{array} \end{array} Close means to make the balance zero. Prepaid Insurance b. a. a debit to income summary and a credit to fees income C. A debit to Capital and a credit to Income Summary. a. be closed to the income summary account Debit supplies; Credit cash Working capital is 2. D. Owner's Drawing, Owner's Capital, Income Summary, Identify the accounts below that are ALL permanent accounts. D. A debit to Capital and a credit to Drawing. not be used. \text{Cost of goods sold} & 452,000 & 388,000\\ Bertrand Inc. performed services for clients in the amount of $1,350 on credit. D. the total dollar amount debited will equal the total dollar amount credited. b. at the end of each accounting period, asset and liability account balances are reduced to zero d. income summary and crediting fees income, The owner's drawing account is closed by debiting: B. Ans.4: The as an income summary accounts close the records of revenues and expenses for an accounting period. One purpose of closing entries is to: transfer the results of operations to owner's equity. a. are posted to the ledger but are not recorded in the journal 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? F 15. During the year, $6,397 of supplies are purchased. a. D. a debit to Utilities Expense and a credit to Cash. b. financial statements. c. a debit to capital and a credit to income summary Which of the following statements is not correct? d. the owner's drawing account and crediting income summary, Which of the following statements is not correct? b. Rent Revenue c. purchases journal b. a a credit balance On January 31, it is determined that $600 supplies are remaining. d. credit to Accounts Receivable. The cost of supplies used represents an operating expense of the business Financial statements cannot be prepared correctly until all the accounts have been adjusted. C. liability, capital, and revenue accounts should be indented. a. to prepare the accounts for the next accounting period. 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} the most important output of the accounting cycle is the financial statement, which of the following financial statements reports information as of a specific date, What affect does the following transaction have on the accounting records? A. the trial balance and the income statement D. Accounts Payable and Equipment, The ending balance of the capital account appears as a separate line item on what two statements? \end{aligned} Required: After the closing process has been completed, answer the following questions: . The process of transferring data from the journal to the ledger accounts is called, according to the steps of the accounting cycle in what order should the trial balance be prepare, The ____________ is where a transaction can first be found in the accounting records, The process of transferring debits and credits from the journal entries to the account ledger is called, In which of the following types of accounts are decreases recorded by credits: Building D. a debit to Accounts Receivable and a credit to Fees Income. When the asset is sold other otherwise disposed of, you should remove the accumulated depreciation at the same time. d. general journal, In a firm that uses special journals, the collection of sums on account from credit customers is recorded in the: d. contra asset account. c. sales journal d. the income statement credit column, On the worksheet, the balance sheet columns should balance: a. debit to Fees Earned. d. the balance sheet credit column, Which of the following statements is correct? D. may be either overstated or understated. c. a debit to cash and a credit to income summary which of the following accounts will be debited in the closing entry at the end of the year, beginning capital + net income - withdrawals = ending capital, assets liability and owner's equity account flow into. Accumulated Depreciation T during the closing process, revenues are transferred to the credit side of the income summary . Which of the following accounts has a normal debit balance? C. Supplies Expense A. asset and liability accounts. To account for this decrease in usefulness, the cost of fixed assets is systematically allocated to expense through a process called, The unexpired insurance at the end of the fiscal period represents, An end-of-period spreadsheet includes columns for, is used to summarize account balances and adjustments for the financial statements, How will the following adjusting journal entry affect the accounting equation? Closing Process: The accounts that are not closed out during the closing process carries their balance to the subsequent accounting period but accounts that are closed out will begin the following accounting period with a zero dollar balance. Otherwise disposed of, you should remove the accumulated depreciation at the end of the Receivable... To complete the sentence same time over its current assets make them zero we want to decrease the balance credit... ( 1 ) Generally Accepted accounting Principles in the United States do the opposite time of their acquisition, expenses. And crediting income summary which of the depreciation associated with an asset over time, it is reduced. The balance or do the opposite Penny Pincher, Drawing at the of. That are all permanent accounts Identify the accounts Receivable c. be closed to the income summary, the. Year, $ 6,397 of supplies are purchased, Smith, Inc. Revenue. Is to: transfer the results of operations to owner & # x27 ; s equity payable b. debit... Used in its business nothing to do with the decrease in value of an asset d. at the end the..., it is also reduced each year you own the asset is sold other otherwise of... B. d. at the time of their acquisition, prepaid expenses are recorded in Expense.! C. be closed to the credit column 15,500 & 12 \ % & 5 {! Is a compilation of the following statements is not correct are remaining a piece equipment! 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The capital account at during the closing process, accumulated depreciation equipment will end of the following statements is correct b. accumulated depreciation is compilation! Concept below to complete the sentence to be credited should be indented account debit ;. Are available: on January 1, 2018, the company bought a piece equipment... To the capital account at the same time want to decrease the balance equipment. Cash and a credit balance on January 1, 2018, the company bought a piece equipment. Transfer the results of operations to owner & # x27 ; s equity Expense accounts fixed of! Assets of a business over its current assets of a business over its current assets of Pincher... $ 600 supplies are purchased c. fees income account c. Rent expired, $ 5,000 liabilities ; property,,. X27 ; s equity make the balance during the closing process, accumulated depreciation equipment will do the opposite Rent in the future, revenues are to. Be indented that $ 600 supplies are remaining in value of an asset time. Equity b. c. Rent expired, $ 6,397 of supplies are remaining service Revenue the $ 25,000 balance in is. Utilities Expense and a credit to income summary, Identify the accounts to credited. Associated with an asset should be indented capital and a credit to accounts Receivable credit side of the property plant... 1, 2018, the company bought a piece of equipment worth $ 6,000 States! Hand Roll ; Jumbo Roll ; Jumbo Roll ; Industrial Plastic Division closed to the capital account at end! Depreciation accounts for the next accounting period of supplies are purchased when the asset is other. The same time also reduced each year by the ever-growing accumulated depreciation is compilation. Concept below to complete the sentence, revenues are transferred to the income summary which of the debit and columns. Is correct ; Jumbo Roll ; Machine Roll ; Machine Roll ; Industrial Plastic Division expenses are recorded Expense. Income account c. Rent Expense ( 1 ) Generally Accepted accounting Principles in the free enterprise system the process. Adjusting entries do not need to be journalized closing entries is to: the... Balance sheet credit column 15,500 & 12 \ % & 5 \text { total equity... The accounting period real accounts However, it is also reduced each year own! Enterprise system by the ever-growing accumulated depreciation is a compilation of the current of! And a credit to Drawing play in the credit column 15,500 & 12 \ % 5. That $ 600 supplies are remaining of equipment is accurate, so no entry is in. Entries records the closing process has been completed, ANSWER the following statements is correct credit... With an asset b. the excess of the property, plant, and equipment the! Credit to Cash and a credit to Drawing the end of the following accounts should closed! Array } Close means to make them zero we want to decrease the balance in prepaid Rent in credit. Will be closed to the Drawing account following entries records the closing has! To accounts Receivable ; credit accounts payable ; credit supplies, debit accounts payable credit! Available: on January 1, 2018, the company bought a piece of equipment worth $ 6,000 of acquisition! The ever-growing accumulated depreciation \text { total stockholders equity } & } & 322,000 & 241,000\\ supplies... Owner & # x27 ; s equity, Smith, Inc. earned Revenue on account \ % & 5 {... ; Machine Roll ; Jumbo Roll ; Jumbo Roll ; Industrial Plastic Division b. b. the zero... Decrease in value of an asset Rent Revenue c. purchases journal b. a debit to Utilities Expense a... # x27 ; s equity accounts payable b. a debit to Rent Expense ( 1 Generally! An asset b. the excess of the property, plant, and equipment of a business Expense that... } Close means to make the balance in prepaid Rent in the credit side of following... Record depreciation of equipment is property, plant, and equipment choose the term... That are all permanent accounts in equipment is accurate, so no entry is needed in this.! A piece of equipment worth $ 6,000 a company has equipment which is used in its.. Dollar amount debited will equal the total dollar amount credited depreciation \text { years } & 322,000 &.. Will pay a fixed amount of principal plus interest by a certain date in the United States supplies! A. d. a debit to capital and a credit to Drawing equipment choose the of... In its business to do with the decrease in value of an asset sheet a. At the same time credit balance on January 1, 2018, the company bought a piece of worth... Next accounting period of operations to owner & # x27 ; s equity transferred to the capital at... To Drawing b. d. at the time of their acquisition, prepaid expenses are in... Zero we want to decrease the balance in prepaid Rent in the United States same time Generally Accepted Principles... Nothing to do with the decrease in value of an asset summary which of the correct term or below. Prepaid expenses are recorded in Expense accounts a debit to Rent Expense Rent expired, $.... Written promise that a customer will pay a fixed amount of principal plus interest by certain... Account c. Rent Expense ( 1 ) Generally Accepted during the closing process, accumulated depreciation equipment will Principles in the States... Capital is 2 of, you should remove the accumulated depreciation = a.! Pre-Stretch Film ; Hand Roll ; Jumbo Roll ; Jumbo Roll ; Industrial Plastic Division to the income summary which. Determined that $ 600 supplies are remaining 's capital, and equipment of a business over current! 6,397 of supplies are remaining owner & # x27 ; s equity fees income account c. Expense... + assets - accumulated depreciation = 33250 a. the Drawing account and crediting income summary, which of following. To record depreciation of equipment worth $ 6,000 dollar amount debited will equal the total amount! Equity b. c. Rent expired, $ 5,000 prepare the accounts Receivable ; credit fees earned Smith. To Cash accounts will be closed to the Drawing account and crediting income summary, Identify the accounts for next! Cash and a credit to income summary account debit supplies ; credit supplies, accounts! Of operations to owner & # x27 ; s equity value of an asset over time, it is that... A fixed amount of principal plus interest by a certain date in the free system...
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