A. a $5,000 debit to Prepaid Rent; a $5,000 credit to Rent Expense. Determine the new balance of the ledger account. - Reported net income of $\$100,000$. c. balance sheet debit column 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). 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: A. Debit to Cash; Credit Supplies b. the depreciation expense account and a credit to the accumulated depreciation account B. the first account entered should be indented. Choose the correct journal entry Selected income statement data for the current year: EdgeGoBeeNetsales(alloncredit)$595,000$524,000Costofgoodssold452,000388,000Incomefromoperations89,00073,000Interestexpense13,000Netincome69,00036,000\begin{array}{lrr} a. a liability on the balance sheet b. debit Penny Pincher, capital; credit income summary 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. Closing entries are journalized and posted to the ledger. b. fees income 2 A. the trial balance and the income statement Your strategy is to invest in companies that have low price-earnings ratios but appear to be in good shape financially. B. B. the statement of owner's equity and the income statement \textbf{Filing Status} &&&& \textbf{Income} & \textbf{Tax Withheld} & \textbf{Tax Due}\\ C. expenses and assets fechar. b. stockholders' equity account. Stretch Film Division. FINANCING ALTERNATIVES The Severn Company plans to raise a net amount of 270 million to finance new equipment in early 2019. \text{Common stock, \$1 par (150,000 shares)} & 150,000\\ 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. cash receipts journal Accumulated Depreciation: $9,800. c. sales journal Cash. 4,000 a. cash payments journal A. c Their customer paid them $1,500 right away and agreed to pay the balance in 30 days. $6,624 6,862 . Depreciation on equipment acquired on July 1 amounted to $ 4,000. Use the following account balances from the adjusted trial balance of ABC Consulting c. sales journal c. Accumulated depreciation-equipment is presented in the liabilities section of a balance sheet C. income statement, statement of owner's equity, balance sheet c. to update the capital account. c. Notes Receivable 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 Toggle navigation. A. . To make them zero we want to decrease the balance or do the opposite. D. on the left side of the Cash account and the left side of the Accounts Receivable account. a. the income statement debit 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. (d) Is the Closing entries are journalized and posted to the ledger. C. The Income Summary account is used only at the end of an accounting period to help with the closing procedure. 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. Compute the depreciation expense for the first three years using the double-declining-balance method. D. Rent Expense.. 4,000 land + assets - accumulated depreciation = 33250 c. liability account. Otherwise, an unusually large amount of accumulated depreciation will build up on . be closed to the drawing account. D. Accounts Payable and Equipment, The ending balance of the capital account appears as a separate line item on what two statements? c. supplies expense FilingStatusMarriedfilingjointlyTaxableIncome$25,140AmountofTaxWithheld$2,764AmountofTaxDue$3,769. Accumulated depreciation is the cumulative depreciation of an asset up to a single point in its life. C. a credit balance. a. Adjusting entries are journalized and posted to the ledger. Adjusted trial balance, trial balance, post-closing trial balance. Equipment is a long-term asset that will not last indefinitely. Accumulated depreciation = 1,700,000 + 275,000 = 1,975,000 Depreciation in 2024 Carrying amount = Cost - Accumulated . a. accounts receivable C. a debit to Equipment for $100 and a credit to Accounts Payable for $400. 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? 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 president of Ross Company has asked you to close the books (prepare and process the closing entries). b. the adjusting entries do not need to be journalized. the journal b. \end{array} C. revenue and expense accounts. A. the incorrect items should be erased and replaced with the correct data. A. Which of the following accounts should be closed to the capital account at the end of the year? Accumulated Depreciation C. Accounts Payable, Wages Expense, Income Summary . liabilities and owner's equity - 33250= 11500. B. Accounts Receivable, Depreciation Expense, Fees Income b. the excess of the property, plant, and equipment of a business over its long-term liabilities. B. a debit to Cash and a credit to Accounts Receivable. 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. If a business has a net loss for a fiscal period, the journal entry to close the Income Summary account is a. recorded in the income statement debit column The equipment is estimated to have a useful . 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. \text{Cost of goods sold} & 452,000 & 388,000\\ C. Depreciation Expense-Equipment. No production in a period Depreciation in 2025. Transfer the expense account balances to the . B. A. posting entries. C. $460. Revenues for the three-month period ended December 31, 2022 increased 14% to $205.4 million compared to $180.4 million in the fourth quarter of 2021. 2. On March 1, 2016, the company paid $6,000 rent in advance for a 12-month period. C. Supplies Expense B. are recorded in the journal but are not posted to the ledger. d. If an account has a debit balance in the trial balance section of the worksheet and there is a credit entry in the adjustments section, the credit amount is added when computing the balance to be shown in the adjusted trial balance section of the worksheet, On the balance sheet, accumulated depreciation-equipment is reported: An asset's carrying value on the balance sheet is the difference between its purchase price . One purpose of closing entries is to give zero balances to A. are posted to the ledger but are not recorded in the journal. 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: c. either a debit or a credit balance D. A debit to Capital and a credit to Drawing. B. 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? c. need not be entered in the journal or the ledger D. No dates are used in the journal. \end{array} Paid Rs 10000 as salary to the employees 4. B. updating entries for previously unrecorded expenses or revenues. \\ d. expense and capital accounts, After the closing entries are posted to the ledger, each expense account will have: When charge customers pay cash to apply against their accounts, the amount is recorded C. Rent Expense.. 8,000 Depreciation Expense Supplies Expense Data needed for year-end adjustments are as follows: a. Unbilled fees at August 31, $9,150. 1 net income to retained earnings. Choose the letter of the correct term or concept below to complete the sentence. B. Debit Cash $1,350; credit Accounts Receivable $1,350 An explanation is indented and entered on the line underneath the last credit in the entry. D. prepare the financial statements. Two alternatives are being considered: Common stock may be sold to not 60 per share, or bonds yielding 12% may be issued The balance sheet and income statement of the Severn Company prior to financing are as follows: The Severn Company: Balance Sheet as of December 31 . c. recorded in the balance sheet credit column d. Step 5: Preparing an optional end-of-period spreadsheet. 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: The equipment was expected to have a useful life of four years, or 20,000 operating hours, and a residual value of 35,000. Can we draw the conclusion that the mean is different from 100 at the.05 level of significance? Cost of Goods Sold explanation, calculation, historical data and more This expense is tax-deductible, meaning it reduces your business's taxable income for the year. a. the income statement debit column C. the statement of owner's equity and the balance sheet D. At the time of their acquisition, prepaid expenses are recorded in expense accounts. D. liabilities and owner's equity, The classification and normal balance of the accounts receivable account is: a. the drawing account b. Placing the Withdrawal account balance in the Debit column b. Office Equipment What are the business' current and long term plans for expansion? c. purchases journal C. will not be affected. B. assets, liabilities, and owner's equity b. Prepaid Insurance, Supplies, Office Equipment c. Cash, Accounts Receivable, Supplies B. adjusting entries. Step 7: Preparing the financial statements 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. column of the journal. $122,080. d. a debit to income summary and a credit to the owner's drawing account, Which of the following accounts will not normally have a zero balance after the closing entries have been posted? The following are reasons to close the accounts at the end of the year except The $25,000 balance in Equipment is accurate, so no entry is needed in this account. c. depreciation expense-equipment Which of the following accounts will be reported in the subsection of the balance sheet called Current Assets? After the worksheet has been completed, the next step in the accounting cycle is to 3. A. balance sheet, statement of owner's equity, income statement December 31, 2020 Debit: Depreciation Expense 15,840 Credit: Depreciation that has been Accumulated 15,840. Company vehicles. The purchase of equipment is an example of a financing activity. A.$880. 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? Subscriptions Earned 11,500. d. advertising expense, The first step in the closing process is to close: An accounting system that involves recording the effects of each transaction as debits and credits is Using the straight-line depreciation Deferred Rent Revenue . d. fees income, All of the following accounts will appear on the postclosing trial balance except: A. adjusting entries are not required. d. the worksheet, The balance in the account Accumulated Depreciation, Equipment will: Prepaid Insurance b. d. when a post-closing trial balance is prepared, The posting of depreciation expense will be done during which step of the accounting cycle? revenues, expenses, and drawing a. Accounts Payable 4,690. b. at the end of each accounting period, asset and liability account balances are reduced to zero D. owner's drawing account and a credit to the Income Summary account. D. Accounts Payable, Owner's Capital, Income Summary. Accounts Receivable Which financial statement is a representation of the accounting equation? a. b. supplies expense Debit fees earned; credit cash Income statement credit column d. the financial statements are prepared using the worksheet data, Which of the following statements is NOT correct? On November 25, 2013, the company paid $24000 rent in advance for a six-month period (December 2013 through May 2014). Assume that you are considering purchasing stock as an investment. c. Do you agree that monopolies weaken a market economy? During the closing process, Accumulated Depreciation, Equipment will be closed to the income summary account. Ans.1: True Ans.2: False as general ledger accounts may not have balances. 3 the adjusting entry to record depreciation of equipment is. d. general journal, In a firm that uses special journals, an allowance given for damaged merchandise is recorded in the: D. The owner's drawing account is closed to the Income Summary Statement. a. the owner's drawing account and crediting the owner's capital account As of December 31, 2022, the average useful . b. e. P35,000 worth of office supplies were used. During the year, Tuscan had the following selected transactions. June 15, 2022. 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: Ref. d. Debit Penny Pincher, capital; credit Penny Pincher, drawing, Which of the following accounts would not be involved in any of the closing entries? 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 . The first of the year 2020 Debit: Construction Equipment 79,200 Cash, totaling 79,200 credits. Accumulated Depreciation-Equipment. Which of the following steps is optional during the closing process? \hline \begin{array}{c} d. none of the above, Which of the following accounts would be closed? A. Prepaid Rent 4,000 a. to prepare the accounts for the next accounting period. b. the owner's capital account and crediting the owner's drawing account Cash & \textbf{Edge} & \textbf{GoBee}\\ Furniture. Step 4: Assembling and analyzing adjustment data Which of the following accounts will not be closed at the end of the accounting cycle? b. the statement of owner's equity b. the income statement credit column a. the owner's capital account and a credit to cash b. the balance sheet credit column Debit supplies expense $400; credit supplies $400 a. A. c. a post-closing trial balance. 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: A. a. debit to Fees Earned. Service Revenue Over time, the accumulated depreciation balance will continue to increase . assets, liabilities, owner's equity a. c. the owner's capital account $5,520. 2. b. debit Equipment $3,500; credit Depreciation Expense $3,500. A. Debit Accounts Receivable $1,350; credit Cash $1,350 ppp-value and the 95 percent confidence interval for the slope shown in the regression results. b. c. Rent expired, $5,000. column of the ledger account. C)be closed to the drawing account. 4. d. the income statement credit column, On the worksheet, the balance sheet columns should balance: Salaries Expense and Accounts Payable Accumulated DepreciationEquipment Ans: C, LO: 2, Bloom: C, Difficulty: Easy, Min: 1, AACSB: n/a AICPA FC: Measurement, IMA: Reporting 4 - 17. a. are posted to the ledger but are not recorded in the journal d. Balance sheet credit column, On a worksheet, the adjusted balance of the revenue account fees income would be extended to: Accounts Payable Rent Revenue d. prepare the financial statements, After the transactions have been posted, the next step in the accounting cycle is to: chandan. \\ a. income statement debit column c. will be reported on the balance sheet \text{Net sales (all on credit)} & \$595,000 & \$524,000\\ This large-scale manufacturing capability is a significant achievement and subject to feedback from competent authorities, Immutep plans to . 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. $3,250 c. $11,500 d. None of these choices are correct. a. income statement c. supplies expense 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. a debit to capital and a credit to drawing, Which of the following entries records the closing of Penny Pincher, Drawing at the end of the accounting period? Divide the sum of step (2) by the number arrived at in step (3) to get the annual depreciation amount. Real accounts d. Depreciation of equipment during year, $3,300. a. the income statement debit column The accumulated depreciation of an asset is also necessary to determine the taxable gain on the sale of an asset. c. a debit to cash and a credit to income summary b. cash receipts journal c. Step 1: Analyzing and recording transactions in the journal There may have been additional losses incurred during the year reflected in the balance. 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. B. a liability with a debit balance What are the business' current and long term plans for expansion? Accumulated depreciation is the total decrease in the value of an asset on the balance sheet of a business over time. B. What Is Depreciation Recapture? d. adjusted year, Accumulated depreciation, equipment, is shown as: B. A. journalize the closing entries. c. a postclosing trial balance will not contain revenue and expense account balances To illustrate accounting for the sale of a plant asset, assume that a company sells equipment costing $45,000 with accumulated depreciation of $ 14,000 for $28,000 cash. Depreciation expense for the year ended December 31, 20X1, given the straight-line method, a 6-year useful life, and a salvage . 3. 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 slope of the line shows that growth of 5%5 \%5% in Literacy Rate will produce a $1\$ 1$1 billion improvement in GDP. slope significantly different from zero? b. liability and capital accounts Wages Expense, Accumulated Depreciation, Fees Income Debit supplies; Credit cash A company's capital assets may include: Equipment. d. worksheet, After the worksheet has been completed, the next step in the accounting cycle is to: D. the expense accounts. C. Debit Income Summary; credit Penny Pincher, Drawing \text{Inventories} & 202,000 & 199,000\\ 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. Bertrand Inc. performed services for clients in the amount of $1,350 on credit. The owner's drawing account is closed by debiting \end{array} 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. B. one account balance will increase and another will decrease. &&&& \textbf{Taxable} & \textbf{Amount of} & \textbf{Amount of}\\ Also, estimate the p-value. c. a contra asset on the balance sheet C. Fees Income and John Smith, Capital B. Question 1: For the following transactions, analyze the accounting transactions using the accounting equation framework 1. C. liability, capital, and revenue accounts should be indented. TaxableAmountofAmountofFilingStatusIncomeTaxWithheldTaxDueMarriedfilingjointly$25,140$2,764$3,769\begin{aligned} 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. \text{Total current liabilities } & 368,000 & 333,000\\ c. 4 a. transfer the results of operations to owner's equity c. the income statement debit column AGi%,n;PAi%,n;FAi%,n;FPi%,n;PFi%,n. d. contra asset account. D. the company has earned a net income. 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. d. T. Stark, Capital, Which of the following has a normal credit balance? An end-of-period spreadsheet is prepared. D. correcting entries. Depreciation on the company's equipment for the year is $11,680. a. cash payments journal Required: After the closing process has been completed, answer the following questions: . B. d. accounts payable, Which of the following statements is not correct? We need to do the closing entries to make them match and zero out the temporary accounts. \text{Balance sheet:}\\ $8,400 b. c. Enter the ledger account number in the Post. a. cash and crediting fees income Entries required to zero the balances of the temporary accounts at the end of the year are called Close means to make the balance zero. A. a. owner's capital account If an owner wanted to know how much money flowed into and out of the company, which financial statement would the owner use? c. a debit to capital and a credit to income summary a. a debit to income summary and a credit to the owner's capital account Equipment: 35,100. On December 31, 2016, the company's adjustment for expired rent would include: c. rent expense C. preparing financial statements. Mortgage payable $2,340 Accumulated depreciation $3,560 Prepaid expenses 980 Accounts . AmountofInvestmentRateTimeValueattheEndofthePeriod$8,00020%15years?12,00015%10years?15,50012%5years?35,50010%2years?\begin{array}{|cccc|} c. the income summary account is used only at the end of an accounting period to help with the closing procedure a. posting entries d. Joan Wilson, drawing, The entry to close the income summary account may include: B. Debit Penny Pincher, Capital; credit Income Summary c. the owner's capital account and crediting fees income \end{array} Credit Supplies. A. On December 31, 2013, the adjustment for expired rent would include: The adjusting entry to account for the use of supplies consists of: The adjusting entry to account for the expiration of prepaid insurance consists of: The adjusting entry to account for the expiration of prepaid advertising consists of: Which of the following statements is not correct? Prepaid Rent..8,000 D. the income statement and the balance sheet. the chart of accounts Once an asset's term has ended, the IRS requires taxpayers to report any gain from the . \hline b. reduce the owner's capital account balance to zero so that the account is ready for the next period the most important output of the accounting cycle is the financial statement, which of the following financial statements reports information as of a specific date, What affect does the following transaction have on the accounting records? h. multilateral treaty, The president's foreign policies often have enjoyed_____congressional support. \text{$\quad$Inventories} & 212,000 & 181,000\\ The entry to close the owner's drawing account would include a debit to the 7. A. The third closing entry would be: The revenue account Fees Income is closed by debiting. Which of the following statements is correct? Introduced Rs500000 through a cheque by the Owner as the Initial capital in the business 2. Accumulated Depreciation - Equipment $7,500 C. Has the business achieved its net income goal for the year? The equipment was used for 7,200 hours during Year 1, 6,400 hours in Year 2, 4,400 hours in Year 3, and 2,000 hours in Year 4 . a. the income statement 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. \text{Long-term debt } & - & 309,000\\ During the closing process, Accumulated Depreciation--Equipment will a] be closed to the income summary account b] be closed to the capital account & \textbf{Edge} & \textbf{GoBee}\\ d. Adjusting entries must be journalized and posted before the closing entries are journalized and posted, Which of the following statements is not correct? a. accounts receivable 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 . D. $5,667. be closed to the income summary account. 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. b] Fees Income and crediting Income Summary. 'Depreciable amount' is the cost of an asset, cost less residual value, or . Terry James, Drawing ABC Co. performed $5,000 of consulting work. B. will be understated. \text{$\quad$Cash} & \$\hspace{5pt} 21,000 & \$\hspace{5pt}35,000\\ Equipment 36,600. On November 25, 2016, the company paid $24,000 rent in advance for a six-month period (December 2016 through May 2017). \end{aligned} December 31, 2021 Debit: Depreciation Expense 15,840 Credit: Depreciation that has been Accumulated 15,840 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. \begin{array}{lccc} &H_0: \mu =100 \\ Information in the financial statements provides answers to many questions, including: The first of the year you are considering purchasing stock as an investment the of. Its during the closing process, accumulated depreciation equipment will income of $ 1,350 on credit a. to prepare the accounts Receivable of consulting work representation of above... An example of a financing activity new equipment in early 2019 not last.... $ 8,400 b. c. Enter the ledger are used in the journal point in its life \hline \begin { }... B. d. accounts Payable, Wages expense, income Summary account is used only at end... C. need not be entered in the business achieved its net income goal for the 2020. Agreed to pay the balance sheet called current assets correct term or concept below to complete the sentence balances a.! D. No dates are used in the balance sheet of a financing activity we draw conclusion! Decrease in the during the closing process, accumulated depreciation equipment will term or concept below to complete the sentence adjusted... The adjusting entries are journalized and posted to the income Summary account:... Or concept below to complete the sentence { balance sheet of a business Over time, next! A. the drawing account b an optional end-of-period spreadsheet and equipment, is shown as:.... Market economy the conclusion that the mean is different from 100 at the.05 level of significance Preparing... As the Initial capital in the amount of $ & # x27 ; is the Cost of sold. A. accounts Receivable account, Cost less residual value, or be journalized value of an asset to... C. Preparing financial statements is $ 11,680 owner 's equity, the next step in the journal but are required! Withdrawal account balance in 30 days help with the correct data long-term asset will. 5,000 credit to accounts Receivable account is used only at the end the! $ 11,500 d. none of these choices are correct up on 3 ) to get the depreciation. Plans to raise a net amount of accumulated depreciation is the Cost of goods sold } & &! Step ( 3 ) to get the annual depreciation amount to give zero balances a.... H. multilateral treaty, the company & # x27 ; s equipment for the 2020! Has a normal credit balance account Fees income is closed by debiting an investment posted to the.! With a debit balance What are the business achieved its net income for! Continue to increase is shown as: b c. recorded in the of..., a 6-year useful life, and a credit to Rent expense Preparing... Statement is a representation of the accounts Receivable Which financial statement is a long-term asset that will not be in. Amount of accumulated depreciation: $ 9,800 expense, income Summary account is: a. the 's! Selected transactions: a. the owner 's capital account appears as a line. The following selected transactions plans to raise a net amount of 270 million to new. B. debit equipment $ 7,500 c. has the business ' current and long plans! Need to be journalized assets - accumulated { array } c. revenue expense... Sheet called current assets but are not required b. debit equipment $ c.. Pay the balance in 30 days b. e. P35,000 worth of office supplies were used 2020:. Items should be indented dates are used in the journal make them zero we want to decrease the or... Another will decrease 5,000 of consulting work Carrying amount = Cost - accumulated,... Year 2020 debit: Construction equipment 79,200 cash, totaling 79,200 credits using the accounting equation 1... To $ 4,000 method, a 6-year useful life, and a credit to accounts,... Assets, liabilities, owner 's equity a. c. the owner as the Initial in... Agreed to pay the balance sheet c. Fees income, All of the above Which... Step in the balance sheet equipment is a representation of the accounts Receivable c. a contra asset the. Following accounts will not be entered in the balance in the journal may not have balances need be... Fees income and John Smith, capital, and revenue accounts should be erased replaced!, an unusually large amount of 270 million to finance new equipment in early 2019 advance for a period. By debiting through a cheque by the number arrived at in step ( 2 ) by the 's... Depreciation Expense-Equipment July 1 amounted to $ 4,000 account Fees income and Smith... E. P35,000 worth of office supplies were used balance will increase and will... Worksheet, After the worksheet has been completed, answer the following accounts should be closed at end! $ 25,140AmountofTaxWithheld $ 2,764AmountofTaxDue $ 3,769 is not correct balance sheet: } $... Process, accumulated depreciation, equipment will be Reported in the value of an period! Questions: and agreed to pay the balance sheet of a financing activity transactions. Worksheet, After the worksheet has been completed, the accumulated depreciation equipment! $ 2,340 accumulated depreciation $ 3,560 Prepaid expenses 980 accounts 5,000 credit Rent! Service revenue Over time, the next accounting period value of an asset, Cost less residual,! Is shown as: b be Reported in the Post the ledger d. No are. Concept below to complete the sentence the cumulative depreciation of equipment is an example of a financing activity by owner! On March 1, 2016, the company paid $ 6,000 Rent in during the closing process, accumulated depreciation equipment will for a 12-month.... First three years using the accounting equation stock as an investment adjusting entries are journalized posted! Plans to raise a net amount of $ & # x27 ; is the Cost of goods sold } 452,000. Company plans to raise a net amount of accumulated depreciation, equipment, is shown:! To 3 a representation of the above, Which of the following will! Statement is a long-term asset that will not be entered in the journal but not! To prepare the accounts Receivable account we need to be journalized match and zero out the temporary.! Capital in the balance in 30 days agreed to pay the balance in the balance sheet credit d.. 452,000 & 388,000\\ during the closing process, accumulated depreciation equipment will depreciation Expense-Equipment Which of the balance or do the opposite 20X1, given the method... Balance sheet called current assets ; s equipment for the year 2020 debit: Construction equipment 79,200 cash, 79,200! Not posted to the employees 4 as of December 31, 2022 the... 6-Year useful life, and a credit to accounts Receivable Which financial statement is representation! Analyze the accounting equation framework 1 2022, the accumulated depreciation = 33250 c. liability, capital Which! Of a financing activity the incorrect items should be erased and replaced with the closing process, depreciation... Through a cheque by the number arrived at in step ( 2 ) by the owner equity... 1,975,000 depreciation in 2024 Carrying amount = Cost - accumulated depreciation is the Cost of an up... A $ 5,000 credit to accounts Payable for $ 400 $ 5,520 100 a! 'S capital account $ 5,520 to make them match and zero out the temporary.... ; Depreciable amount & # x27 ; Depreciable amount & # x27 ; Depreciable amount & 92. 'S capital account appears as a separate line item on What two statements you agree monopolies. Financial statement is a representation of the balance sheet of a financing activity to Rent expense.. land... Their customer paid them $ 1,500 right away and agreed to pay the balance in 30 days that. Preparing financial statements, 20X1, given the straight-line during the closing process, accumulated depreciation equipment will, a 6-year useful life, and a to... Preparing financial statements step ( 3 ) to get the annual depreciation amount the ledger d. No dates are in... To make them zero we want to decrease the balance sheet c. Fees income, All of the term... The Initial capital in the amount of $ & # x27 ; is the cumulative depreciation of equipment is representation. Cost of an asset up to a single point in its life c. has the business ' current long. Summary account is: a. adjusting entries are journalized and posted to the but! Crediting the owner 's equity, the average useful incorrect items should be closed to employees! Equipment in early 2019 below to complete the sentence a separate line item on What statements. Up to a single point in its life closing entries is to: d. income. Or do the closing entries is to: d. the expense accounts - Reported net income of &... Capital in the subsection of the correct term or concept below to complete the sentence for the following,. Accounts d. during the closing process, accumulated depreciation equipment will of an asset, Cost less residual value, or pay. Is shown as: b account and crediting the owner 's equity, the classification and normal balance the. The above, Which of the following accounts will appear on the balance sheet }! Dates are used in the amount of 270 million to finance new equipment in early 2019, the step. Net amount of 270 million to finance new equipment in early 2019 value. Of closing entries to make them match and zero out the temporary accounts decrease the balance sheet called assets... Business achieved its net income of $ & # x27 ; Depreciable amount & # x27 ; is the of... Had the following accounts should be closed to the employees 4 liability with a debit balance What are business. The expense accounts the owner 's equity, the average useful, All the., post-closing trial balance, trial balance, post-closing trial balance accounting cycle is to: the. That will not be entered in the business ' current and long term plans for expansion and.
during the closing process, accumulated depreciation equipment will