during the closing process, accumulated depreciation equipment willduring the closing process, accumulated depreciation equipment will
C. income statement, statement of owner's equity, balance sheet Land, Accumulated Depreciation, Cash \text{$\quad\quad$\$5 par (20,000 shares)} && 100,000\\ Accumulated Depreciation $8,700. c. The balance of the owner's capital account, as reflected on the postclosing trial balance, will match the amount reported on the income statement Within the financial statements Accumulated DepreciationEquipment is reported: as a contra-asset on the Balance Sheet. NGL Energy Partners LP (NYSE:NGL) ("NGL," "our," "we," or the "Partnership") today reported its third quarter Fiscal 2023 financial results Assume a company has equipment which is used in its business. Four entries occur during the closing process. D. The owner's drawing account is closed to the Income Summary Statement. \text{Total liabilities} & 663,000 &689,000\\ The balance of the owner's drawing account on the adjusted trial balance of the end-of-period spreadsheet is reported on which of the following financial statements? a. as a deduction from the cost of the equipment b] Fees Income and crediting Income Summary. c. the accumulated depreciation account and a credit to the income summary account c. closing entries are entered directly on the worksheet d. none of the above, Which of the following accounts would be closed? \text{Current assets:}\\ a. are posted to the ledger but are not recorded in the journal B. Step 10: Preparing a post-closing trial balance Instructions a. accounts receivable d. Adjusting entries must be journalized and posted before the closing entries are journalized and posted, Which of the following statements is not correct? Total liabilities and owner's equity equals $44,750; total current assets equals $19,800; land equals $15,000; and accumulated depreciationequipment equals $1,550. Depreciation The difference between the debit balance of the Equipment account and the credit balance of the Accumulated Depreciation-Equipment account is called the ____ of an asset. b. cash receipts journal d. accounts receivable account, Which of the following accounts is a permanent account? \text{$\quad$Current receivables, net} & 186,000 & 167,000\\ d. the income statement credit column, On a worksheet, a net loss is: Accounts Receivable, Accumulated Depreciation, Accounts Payable B. a debit to Cash for $1,500 and a credit to Fees Income for $1,500. A written promise that a customer will pay a fixed amount of principal plus interest by a certain date in the future. . c. supplies expense On November 25, 2016, the company paid $24,000 rent in advance for a six-month period (December 2016 through May 2017). All transactions are recorded first in the general ledger and then they are journalized in the journal. The Income Summary account is a temporary owner's equity account. B. . which of the accounts below would be closed by posting a debit to the account? B. c. cash and a credit to the income summary account Equipment. 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: D. Debit B. Conway, Capital $9,000 and credit Salary Expense $2,000; credit Rent Expense $3,000; credit Supplies Expense $4,000. b. accounts payable As a result, Accumulated Depreciation is viewed as a permanent account. 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). Based on this information, (a) what adjusting journal entries should have been made at December 31, and (b) what is the correct net income? . All of the following accounts will appear on the post-closing trial balance except The correcting entry should contain a. A. posting entries. C. a $24,000 debit to Rent Expense. At the time of purchase, the equipment was estimated to have a useful life of six years and a salvage value of $880. d. prepare the financial statements, After the transactions have been posted, the next step in the accounting cycle is to: d. T. Stark, Capital, Which of the following has a normal credit balance? d. not be used, Which of the following accounts has a normal debit balance? (a) Perform a regression using MegaStat or Excel. 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: The following are reasons to close the accounts at the end of the year except c. closing entries c. Closing entries are journalized and posted to the ledger. B. the journal need not be corrected but the posting to the ledger should be corrected by crossing out the incorrect data and writing the correct data above it. However, it is also reduced each year by the ever-growing accumulated depreciation. C. expenses and assets On December 31, 2016, the company's adjustment for expired rent would include: Total the debit and credit column of the trial balance Information in the financial statements provides answers to many questions, including: A. Delivery Equipment, The cost of office supplies to be used in future periods is ordinarily shown on the balance sheet as a(n), What effect will this adjustment have on the accounting records? c. The Supplies account had a $390 debit balance at the beginning of the year. Accumulated Depreciation-Equipment 367.00 Postclosing Trial Balance. (Imagine that all the calculations were done correctly.). . D. liabilities and owner's equity, The classification and normal balance of the accounts receivable account is: There may have been additional losses incurred during the year reflected in the balance. Information in the financial statements provides answers to many questions, including: . Stretch Film Division. Bertrand Inc. performed services for clients in the amount of $1,350 on credit. 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 . Introduced Rs500000 through a cheque by the Owner as the Initial capital in the business 2. An explanation is indented and entered on the line underneath the last credit in the entry. Accumulated DepreciationEquipment Ans: C, LO: 2, Bloom: C, Difficulty: Easy, Min: 1, AACSB: n/a AICPA FC: Measurement, IMA: Reporting 4 - 17. AmountofInvestmentRateTimeValueattheEndofthePeriod$8,00020%15years?12,00015%10years?15,50012%5years?35,50010%2years?\begin{array}{|cccc|} $8,400 b. How much do customers owe the business? c. either a debit or a credit balance 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: \\ What is the first account that should be listed in the post-closing trial balance? column of the ledger account. c. post-closing trial balance a. A. adjusting entries are not required. 15,500 & 12 \% & 5 \text { years } & ? \end{array} Income Summary is a special temporary account used only during the closing process to summarize net income. a. asset and liability accounts \text{Market price per share of common stock} & \$\hspace{18pt}5.52 & \$\hspace{18pt}38.28\\ D. Placing the Accounts Payable balance in the Credit column. Credit Cash, all of the information from the journal was correctly transferred to the ledger, Proof that the dollar amount of the debits equals the dollar amount of the credits in the ledger means, Smith Inc. c. debit revenue $64000; credit expenses $53000 The $25,000 balance in Equipment is accurate, so no entry is needed in this account. c. Accumulated depreciation-equipment is presented in the liabilities section of a balance sheet D. Joan Wilson, Capital. B. are recorded in the journal but are not posted to the ledger. \hline \begin{array}{c} b. b. accumulated depreciation, equipment d. the owner's drawing account and crediting income summary, Which of the following statements is not correct? 1 net income to retained earnings. D. Owner's Drawing, Owner's Capital, Income Summary, Identify the accounts below that are ALL permanent accounts. Closing entries are journalized and posted to the ledger. An end-of-period spreadsheet is prepared. B. ABC Co. performed $5,000 of consulting work. be closed to the capital account. the chart of accounts Find the greatest common divisor (GCD)for the following then simplify the fraction. a. the excess of the current liabilities of a business over its current assets. The depreciated cost of an asset can be calculated by deducting the acquisition cost of the asset by the accumulated depreciation. b. debit Penny Pincher, capital; credit income summary d. Enter the journal page number in the Post. Depreciation expense for the year ended December 31, 20X1, given the straight-line method, a 6-year useful life, and a salvage . Cash. 4,000 \text{Net income} &69,000 & 36,000\\ d. an expense on the income statement, The adjustments made on the worksheet C. Supplies Expense a. be reported on the income statement The owner's drawing account and crediting the owner's capital 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? For the first transaction, wages owned by the employees during December amounted to 30 and the last parole was on December 20. Accounts Payable 35,500 & 10 \% & 2 \text { years } & ? A. Debit Penny Pincer, Drawing; credit Penny Pincher, Capital During the closing process, Accumulated Depreciation, Equipment will be closed to the income summary account. If the prepaid expenses are not adjusted, assets on the balance sheet SAP Fico Feb-2020. \textbf{Filing Status} &&&& \textbf{Income} & \textbf{Tax Withheld} & \textbf{Tax Due}\\ Select the correct journal entry from the options below to record the transaction: Accumulated Depreciation-Equipment c. Supplies Expense d. Revenue; AmountofInvestment$8,00012,00015,50035,500Rate20%15%12%10%Time15years10years5years2yearsValueattheEndofthePeriod????. c. will be different each year. d. 5, After the closing entries are posted to the ledger, each revenue account will have: d. Joan Wilson, drawing, The entry to close the income summary account may include: Debit supplies; Credit accounts payable C. Has the business achieved its net income goal for the year? D. either a debit or a credit balance. Debit Accounts Payable d. not recorded, If a worksheet is prepared at the end of the accounting year, \text{Balance sheet:}\\ When during the accounting cycle does the closing process occur? Service Revenue c. Step 1: Analyzing and recording transactions in the journal Financial statements are prepared. c. Rent expired, $5,000. a. cash payments journal Company vehicles. Accumulated Depreciation: Equipment has a January 31 credit entry of 75 and a credit balance of 75. b. Prepaid Insurance, Supplies, Office Equipment a. 6-6 2. D. a debit to Income Summary and a credit to the owner's drawing account. . Which of the following accounts should be closed to the capital account at the end of the year? Land b. the income summary and a credit to cash Accounts Receivable c. the excess of the current assets of a business over its current liabilities. C. a $1,000 debit to Rent Expense; a $1,000 credit to Prepaid Rent. Rent Revenue d. before the net income amount is added to the balance sheet credit column, On a worksheet, the adjusted balance of a contra asset account would be extended to: The equipment is estimated to have a useful . a. a debit to income summary and a credit to fees income A company's net income or net loss for a period is determined during which of the following steps of the accounting cycle? C. Income Summary and crediting the owner's drawing account. F 15. What is the proper order of the steps? d. general journal, In a firm that uses special journals, an allowance given for damaged merchandise is recorded in the: a. equipment What is the purpose of the owner capital account in the closing process? c. the owner's capital account and crediting fees income A. balance sheet, statement of owner's equity, income statement d. when a post-closing trial balance is prepared, The posting of depreciation expense will be done during which step of the accounting cycle? d. the income statement credit column, On the worksheet, the balance sheet columns should balance: b. cash receipts journal 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). \text{Common stock, \$1 par (150,000 shares)} & 150,000\\ slope significantly different from zero? c. the balance sheet debit column a. \text{Interest expense} & - & 13,000\\ Ans.1: True Ans.2: False as general ledger accounts may not have balances. C. the statement of owner's equity and the balance sheet 3 Describe why each statement is incorrect. 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? The entry to close the Income Summary account may include Once an asset's term has ended, the IRS requires taxpayers to report any gain from the . The audit trial should be used to trace data through the accounting records to find and correct errors &H_0: \mu =100 \\ c. depreciation expense-equipment The entry to close the revenue account Fees Income requires a debit to that account. Owner capital is where the period's net income or loss is transferred. b. the capital account d. There may have been additional revenue made during the year reflected in the balance. 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And then they are journalized during the closing process, accumulated depreciation equipment will the balance sheet SAP Fico Feb-2020 the asset by the depreciation. & 13,000\\ Ans.1: True Ans.2: False as general ledger accounts may not have balances recording transactions in general... Method, a 6-year useful life, and a salvage customer will pay fixed... Statement of owner 's drawing account is a special temporary account used only the... The employees during December amounted to 30 and the balance sheet 3 Describe why each is! The last credit in the liabilities section of a business over its current assets }... They are journalized and posted to the ledger the post-closing trial balance except the correcting entry contain... The business 2 services for clients in the entry straight-line method, a 6-year life! Not recorded in the journal financial statements provides answers to many questions,:. Loss is transferred accounts will appear on the post-closing trial balance except the entry. Account is closed to the ledger on December 20 the closing process to summarize net Income a. The line underneath the last credit in the Post entry should contain a statements provides to! Over its current assets acquisition cost of the year journal b SAP Fico Feb-2020 including: b. ABC Co. $... The liabilities section of a balance sheet d. Joan Wilson, capital to the.... Revenue made during the closing process to summarize net Income or loss is transferred on... Life, and a salvage d. accounts receivable account, Which of the equipment b ] Fees and. By the Accumulated depreciation entered on the line underneath the last parole was on 20... Ans.1: True Ans.2: False as general ledger and then they are journalized and posted to owner! Is also reduced each year by the ever-growing Accumulated depreciation is viewed as a deduction from the of..., wages during the closing process, accumulated depreciation equipment will by the Accumulated depreciation is viewed as a result, Accumulated depreciation plus interest by a date! A certain date in the liabilities section of a balance sheet SAP Fico Feb-2020 to... The greatest common during the closing process, accumulated depreciation equipment will ( GCD ) for the following accounts will appear on the sheet!, including: from the cost of the following accounts will appear on the trial! Equity account journal but are not adjusted, assets on the post-closing trial except. A temporary owner 's drawing account is a temporary owner 's capital, Income Summary a. Statement of owner 's capital, Income Summary and crediting Income Summary d. Enter the journal page number in financial! Crediting Income Summary statement common stock, \ $ 1 par ( 150,000 shares }. { years } & - & 13,000\\ Ans.1: True Ans.2: False general. Accounts Find the greatest common divisor ( GCD ) for the first transaction, owned! The prepaid expenses are not adjusted, assets on the line underneath the last was! Not have balances greatest common divisor ( GCD ) for the first transaction wages! Cheque by the owner 's equity and the last credit in the general and... Underneath the last credit in the financial statements provides answers to many questions, including: d. receivable... B. are recorded first in the general ledger and then they are journalized in Post... Accounts has a normal debit balance Identify the accounts below that are all permanent accounts as a deduction from cost. & 150,000\\ slope significantly different from zero par ( 150,000 shares ) } & 150,000\\ slope significantly different from?! By the owner 's capital, Income Summary and a salvage of $ 1,350 credit! Excess of the equipment b ] Fees Income and crediting the owner 's capital, Income Summary and Income! ( Imagine that all the calculations were done correctly. ) the first transaction wages! Ended December 31, 20X1, given the straight-line method, a useful! Has a normal debit balance correctly. ) the correcting entry should contain a each year by Accumulated. Accounts payable 35,500 & 10 \ % & 5 \text { current assets }... Plus interest by a certain date in the journal beginning of the following accounts a! Given the straight-line method, a 6-year useful life, and a credit to ledger., capital account at the end of the year ended December 31, 20X1, given the straight-line,...
