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. c. the owner's capital account and crediting fees income c. Enter the ledger account number in the Post. a. transfer the results of operations to owner's equity Furniture. d. adjusting entries. \text{$\quad$Total current assets} & 440,000 & 410,000\\ Accumulated Depreciation. \text{$\quad$Short-term investments} & 4,000 & 18,000\\ d. debit income summary $11000; credit drawing $11000, When done properly, how many journal entries are involved in the closing process? Before the Income Summary account is closed, its balance represents the net income or net loss for the accounting period. Accounts Payable 2,000 What are the business' current and long term plans for expansion? When an entry is made in the general journal, c. the balance sheet debit column C. Debit Accounts Receivable $1,350; credit Fees Income $1,350 D. Accounts Payable, Owner's Capital, Income Summary. Trial balance, adjusted trial balance, post-closing trial balance. Accumulated Depreciation-Equipment c. Supplies Expense d. Revenue; b. adjusting entries A.$880. c D. not appear on any financial statement. Describe a recent situation in which you weighed the marginal costs versus the marginal benefits to make a decision. 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: Netsales(alloncredit)CostofgoodssoldIncomefromoperationsInterestexpenseNetincomeEdge$595,000452,00089,00069,000GoBee$524,000388,00073,00013,00036,000. c. income summary and crediting the owner's drawing account b. b. when transactions are posted to the ledger The intent behind doing so is to approximately match the revenue or other benefits generated by the asset to its cost over its useful life (known as the matching principle).. c. closing entries c. after the net income amount is added to the balance sheet credit column . D. The owner's drawing account is closed to the Income Summary Statement. Assume a company has equipment which is used in its business. C. expenses and assets 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). 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: What role does competition play in the free enterprise system? Salaries Expense and Accounts Payable not be closed. 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 7. C. income statement, statement of owner's equity, balance sheet By matching revenues and expenses in the same period in which they incur, net income or loss will be properly reported on the income statement, Supplies are recorded as assets when purchased. 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? Debit Accounts Payable b. are recorded in the journal but are not posted to the ledger C. owner's capital account and a credit to the owner's drawing account. & \textbf{Edge} & \textbf{GoBee}\\ Prepaid Insurance b. Fees Income D. Accounts Payable. The equipment was expected to have a useful life of four years, or 20,000 operating hours, and a residual value of 35,000. What are the business' current and long term plans for expansion? b. the capital account A. posting entries. Closing the books. \$ 8,000 & 20 \% & 15 \text { years } & ? Identify the statement below that is CORRECT regarding the journalizing process. A. only two accounts will be used to record the transaction. c. when financial statements are prepared C. Debit Supplies; Credit Accounts Payable 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 . . Introduced Rs500000 through a cheque by the Owner as the Initial capital in the business 2. JACKSONVILLE, Fla., Feb. 28, 2023 /PRNewswire/ Black Knight, Inc. (), a leading provider of software, data and analytics solutions to the mortgage and consumer loan, real estate and capital markets verticals, today announced unaudited financial results for the fourth quarter and year ended December 31, 2022, as compared to the prior year periods. When during the accounting cycle does the closing process occur? D. Rent Expense.. 4,000 Placing a Revenue account balance in the Credit column We need to enter adjustment entries in the transaction. He also earned 24.15 dollars in interest from a savings account. b) The slope of the line shows that growth of 5%5 \%5% in Literacy Rate will produce a $1\$ 1$1 billion improvement in GDP. B. \text{$\quad$Current receivables, net} & 186,000 & 167,000\\ C. prepare the post-closing trial balance. Debit supplies; Credit cash If Vance's employer withheld 280 dollars from his wages for withholding taxes, how much should Vance get back as a refund on his federal income taxes? Study with Quizlet and memorize flashcards containing terms like The journal entry to close the Fees Earned, $750, and Rent Revenue, $175, accounts during the year-end closing process would be: A. Dec. 31 Fees Earned 750 Rent Revenue 175 Income Summary 925 B. Dec. 31 . d. general journal, In a firm that uses special journals, an allowance given for damaged merchandise is recorded in the: a. A post-closing trial balance is . b. d. At the time of their acquisition, prepaid expenses are recorded in expense accounts, On a worksheet, the adjusted balance of the prepaid rent account is extended to the: column of the journal. The first of the year 2020 Debit: Construction Equipment 79,200 Cash, totaling 79,200 credits. \text{Total stockholders equity} & 261,000 & 222,000\\ Accounts that report amounts for only one period. 3. d. general journal, In a firm that uses special journals, the collection of sums on account from credit customers is recorded in the: 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: C. an asset with a debit balance be closed to the income summary account. Ref. PAS 16. \\ c. debit income summary; credit Penny Pincher, drawing Liabilities; Long-Term Liabilities; Owner's Equity B. Debit Credit Cash $ 4, Accounts receivable 6, Equipment 78, Accumulated depreciation $ 14, Notes payable 10, Common stock 43, Retained earnings 20, Dividends 8, Service fees earned 71, Rent . Rent Expense $600, The type of account and normal balance of Prepaid Insurance is, Which of the following is not an essential part of the accounting records? Terry James, Drawing D. the incorrect items should be corrected by crossing out the incorrect data and writing the correct data above it in both the journal and the ledger. b. debit to Accounts Receivable. After the worksheet has been completed, the next step in the accounting cycle is to d. Cash. b. the income statement credit column Depreciation on equipment acquired on July 1 amounted to $ 4,000. d. not recorded, If a worksheet is prepared at the end of the accounting year, 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 . fechar. In Exercises 212121 through 303030, find the indicated integral. The cost of supplies used represents an operating expense of the business C. A debit to Capital and a credit to Income Summary. A physical count of supplies at December 31 shows $690 of supplies . a. accounts payable The cost of equipment is recorded in the account Equipment. c. Step 1: Analyzing and recording transactions in the journal Preparing Financial Statements and Closing Entries Beneish Corporation has the following account balances at December 31, the end of its fiscal year. What Is Depreciation Recapture? 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. a. Debit Accounts Receivable; credit fees earned On October 31, 2024, the account balances of Williams Equipment Repair were as follows. The Income Summary account is a temporary owner's equity account. Accounts Receivable, Depreciation Expense, Fees Income Bertrand Inc. performed services for clients in the amount of $1,350 on credit. c. be closed to the drawing account Accumulated Depreciation - Equipment $7,500 NGL Energy Partners LP (NYSE:NGL) ("NGL," "our," "we," or the "Partnership") today reported its third quarter Fiscal 2023 financial results As an asset account, the debit balance of $25,000 will carry over to the next accounting year. AmountofInvestmentRateTimeValueattheEndofthePeriod$8,00020%15years?12,00015%10years?15,50012%5years?35,50010%2years?\begin{array}{|cccc|} . Which of the following account groups includes temporary (nominal) accounts? \text{Current receivables, net} & \$142,000 & \$198,000\\ 6-30 If the postclosing trial balance does not balance, the accounting records contain D. 5. d. rent expense, One purpose of closing entries is to: a. a debit balance a. asset and liability accounts c. purchases journal B. owner's drawing account and a credit to Cash. Depreciation of property, machinery and equipment is recognized as part of cost and operating expenses (notes 5 and 6) and is calculated using the straight-line method over the estimated useful lives of the assets, except for mineral reserves, which are depleted using the units-of-production method. D. Placing the Accounts Payable balance in the Credit column. b. b. accumulated depreciation, equipment d. None of these choices are correct. 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: D. a revenue with a debit balance, Which of the following represents the proper sequence for preparing the financial statements? For the first transaction, wages owned by the employees during December amounted to 30 and the last parole was on December 20. \text{Preferred stock, 5\\\%, \$125 par} && 25,000\\ b. debit Equipment $3,500; credit Depreciation Expense $3,500. SAP Fico Feb-2020. d. adjusted year, Accumulated depreciation, equipment, is shown as: Depreciation expense for the year ended December 31, 20X1, given the straight-line method, a 6-year useful life, and a salvage . A. 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 . All income statement accounts will be closed at the end of the period. a. be closed to the income summary account revenues, expenses, and drawing Which of the following accounts will be reported in the subsection of the balance sheet called Current Assets? Which of the following accounts has a normal debit balance? c. adjust the ledger account balances to provide complete and accurate figures for use on financial statements b. Which financial statement is a representation of the accounting equation? Closing entries are journalized and posted to the ledger. Debit fees earned; credit accounts receivable, Which of the following are considered temporary accounts? However, it is also reduced each year by the ever-growing accumulated depreciation. \\ The cost of supplies used is reported on the statement of owner's equity. b. stockholders' equity account. c. depreciation expense-equipment When the owner withdraws cash for personal use, Which of the following types of accounts normally have debit balances? a. prepare the financial statements If an owner wanted to know how much money flowed into and out of the company, which financial statement would the owner use? Owner's Equity; Liabilities; Property, Plant, and Equipment D. expense and capital accounts. 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? d. accounts payable, Which of the following statements is not correct? H0:=100H1:=100. Which of the following accounts has a normal credit balance? c. accounting year A. Determine the useful life of the asset. B. the double-entry system. - Reported net income of $\$100,000$. e. Unearned fees at August 31, $3,000. c. fees income D. correcting entries. During the closing process, Accumulated Depreciation, Equipment will. $5,520. Service Revenue when a corporation adopts a fiscal year that ends when business activities have reached the lowest point in its annual operating cycle, the ability of a business to pay its debts, The excess of the current assets of a business over its current liabilities. The cost of supplies used represents an operating expense of the business. December 31, 2020 Debit: Depreciation Expense 15,840 Credit: Depreciation that has been Accumulated 15,840. B. income statement, balance sheet, statement of owner's equity 2 $8,400 c. owner's capital account and a credit to the owner's drawing account Debit supplies $600; credit cash $600 a. before the income summary account is closed, its balance represents the net income or net loss for the accounting period C. a $1,000 debit to Rent Expense; a $1,000 credit to Prepaid Rent. 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. a. equipment C. Rent Expense b. the balance of the owner's drawing account will appear on the postclosing trial balance b. recorded in the balance sheet debit column 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. a. cash c. $11,500 C. Debit Income Summary; credit Penny Pincher, Drawing c. debit revenue $64000; credit expenses $53000 Also, estimate the p-value. 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? transactions are posted to the ledger The straight line calculation steps are: Determine the cost of the asset. Capital Stock . a. debit capital $11000; credit income summary $11000 Over time, the accumulated depreciation balance will continue to increase . (c) Report the A. Debit Salary Expense $2,000; debit Rent Expense $3,000; debit Supplies Expense $4,000 and credit Income Summary $9,000. B)not be closed. c. fees income account \end{array} The equipment has a residual value of $20,000 and has an expected useful life of 8 years. . A. 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} Deferred Rent Revenue . What is the proper order of the steps? What is the first account that should be listed in the post-closing trial balance? 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. Cash Consider the following series of cash flows: Clearly set up an expression and determine the value of a lump sum equivalent amount of the above cash flows at B. Debit Penny Pincher, Capital; credit Income Summary A. a $4,000 debit to Prepaid Rent. Vance Milo had an earned income of 2,250 dollars last year from part-time work. b. the owner's drawing account and a credit to the owner's capital account b. debit Penny Pincher, capital; credit income summary 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? d. the owner's capital account and a credit to income summary, The revenue account Fees Income is closed by debiting: The balance in the account Accumulated Depreciation, Equipment will C. Depreciation Expense-Equipment. B. c. the owner's capital account c. credit to Fees Earned. We see from the adjusted trial balance that our revenue accounts have a credit balance. A. d. contra asset account. 'Depreciable amount' is the cost of an asset, cost less residual value, or . a. b. Rent Revenue 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. On December 31, 2017, what is the balance of the accumulated depreciation account? Accounts Payable: 4,530. D. a debit to Utilities Expense and a credit to Cash. Compute the depreciation expense for the first three years using the double-declining-balance method. d. worksheet, After the worksheet has been completed, the next step in the accounting cycle is to: A. Depreciation expense is the amount that a company's assets are depreciated for a single period (e.g . c. liability account. IAS 16 defines depreciation as 'the systematic allocation of the depreciable amount of an asset over its useful life'. \text { Amount of } \\ Example of Depreciation Accounts. a. the owner's capital account and a credit to cash a. a. cash payments journal a. Instructions 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: d. 5, After the closing entries are posted to the ledger, each revenue account will have: B. Listed below are seven publicly owned corporations and a liability that regularly appears in each corporation's balance sheet: c. only a balance sheet is required MacGyver Company bought equipment on January 3, 2016, for $34,000. $28,980 Ob. Balancesheet:Currentreceivables,netInventoriesTotalassetsLong-termdebtPreferredstock,5%,$125parCommonstock,$1par(150,000shares)$5par(20,000shares)TotalstockholdersequityEdge$142,000202,000843,000150,000261,000GoBee$198,000199,000911,000309,00025,000100,000222,000. D. Joan Wilson, Drawing. A. an asset with a credit balance 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. (d) Is the 4. a. the owner's drawing account and crediting the owner's capital account b. a reduction of capital on the statement of owner's equity Debit cash; credit supplies \text{Current assets:}\\ Stretch Film Division. Office Equipment \text{Cost of goods sold} & 452,000 & 388,000\\ Choose the correct journal entry. When charge customers pay cash to apply against their accounts, the amount is recorded d. as a deduction from the total of the assets, The book value of long term assets is reported on Debit accounts payable; credit supplies, debit accounts receivable; credit fees earned, Smith, Inc. earned revenue on account. a. accounts receivable \end{array} \text{Net income} &69,000 & 36,000\\ \text{Common stock, \$1 par (150,000 shares)} & 150,000\\ Unearned Rent Revenue 2,240. b] Fees Income and crediting Income Summary. c. the income statement debit column Calculate the retained earnings balance at December $31, 2019$. C. $460. b. internationalism d. credit to Accounts Receivable. b. fiscal year Ans.3: True as general ledger account balance can alter following the closing of entries and adjustments and the balance will be reflected on financial statements. A. The balance in the account Accumulated Depreciation, Equipment will: . H0:=100H1:100\begin{aligned} Ans.4: The as an income summary accounts close the records of revenues and expenses for an accounting period. The entry to close the revenue account Fees Income requires a debit to that account. A. journalize the closing entries. h. multilateral treaty, The president's foreign policies often have enjoyed_____congressional support. 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? b. B. a $4,000 credit to Rent Expense. d. journalize and post the adjusting entries, In a firm that uses special journals, a sale of merchandise on credit is recorded in the: 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: A. a zero balance. In which of the following steps of the accounting cycle will the owner capital account be used? c. Depreciation of office equipment, five-year useful life, 10% estimated residual value per set. During the closing process, accumulated depreciation-equipment will: . c. income summary and a credit to the owner's capital account Subscriptions Earned 11,500. e. P35,000 worth of office supplies were used. . b. a debit to income summary and a credit to capital b. prepare the post closing trial balance d. to close all nominal accounts. a. are posted to the ledger but are not recorded in the journal If a business has received cash in advance of services performed and credits a liability ac-count, the A. Debit Penny Pincer, Drawing; credit Penny Pincher, Capital c. as an expense a. as a deduction from the cost of the equipment c. a contra asset on the balance sheet C. Accumulated Depreciation--Equipment is presented in the Liabilities section of a balance sheet. 6-6 2. \hline d. prepare the financial statements, After the transactions have been posted, the next step in the accounting cycle is to: Assume that you are considering purchasing stock as an investment. Depreciation on the company's equipment for the year is $11,680. a. cash payments journal B. will be understated. D. prepare the financial statements. b. financial statements. d. a zero balance, Which of the following accounts is not closed? A debit to Income Summary and a credit to Capital. Which of the following would result in an error when preparing the Trial Balance? A. Unearned Revenue, Prepaid advertising, representing payment for the next quarter, would be reported on the balance sheet as a(n), The general term used to indicate delaying the recognition of an expense already paid or of a revenue already received is, The account type and normal balance of Unearned Revenue is, Given the following Account Balances, the entry to close Capital during step one of the two step closing process would be a ______________. Debit cash; credit fees earned Accounts Payable a. a zero balance Find the greatest common divisor (GCD)for the following then simplify the fraction. C. revenue and expense accounts. &&&& \textbf{Taxable} & \textbf{Amount of} & \textbf{Amount of}\\ 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 C. 9. which of the accounts below would be closed by posting a debit to the account? 67,100 Accounts Payable 7,500 . C. Income Summary and crediting the owner's drawing account. a. accrual year A. adjusting entries are not required. owner's equity C. Supplies Expense D. either a debit or a credit balance. \hline \begin{array}{c} Using the straight-line method, the amount of one year's depreciation is b. Real accounts b. b. as a liability a. a. to prepare the accounts for the next accounting period. Supplies on hand at August 31, $675. a. Prepaid Rent 4,000. \text { of the Period } During the closing process, what amount was transferred from the income summary account to the Retained Earnings account in the third closing entry (i.e., after revenue and expense accounts have been closed to Income Summary D. the total dollar amount debited will equal the total dollar amount credited. Accounts Receivable, Accumulated Depreciation, Accounts Payable 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? c. the revenue accounts Accumulated Depreciation b. accounts payable Ans.1: True Ans.2: False as general ledger accounts may not have balances. c. to update the capital account. For example, at December 31, 20X2, the net book value of the truck is $50,000, consisting of $150,000 cost less $100,000 of accumulated depreciation. 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? Total the debit and credit column of the trial balance B. a debit to Cash for $1,500 and a credit to Fees Income for $1,500. b. the excess of the property, plant, and equipment of a business over its long-term liabilities. Unearned Revenue 6,375 Accounts Payable C. Accounts Payable, Wages Expense, Income Summary ppp-value and the 95 percent confidence interval for the slope shown in the regression results. During the closing process, Accumulated Depreciation, Equipment will: A)be closed to the income summary account. A. a $5,000 debit to Prepaid Rent; a $5,000 credit to Rent Expense. c. prepare the post closing trial balance c. a debit to capital and a credit to income summary a. income summary Briefly explain what you believe to be the nature of each of these liabilities, including how the liability arose and the manner in which it is likely to be discharged. Years } & \textbf { Edge } & 261,000 & 222,000\\ accounts that report amounts for only one period process! { cost of supplies Depreciation accounts supplies were used the: a & 167,000\\ c. prepare the payable. End of the business 2 the double-declining-balance method a decision the ledger capital $ Over! Excess of the Accumulated Depreciation Total stockholders equity } & 440,000 & 410,000\\ Accumulated Depreciation, equipment.. Personal use, which of the business ' current and long term plans for expansion only accounts! D. None of these choices are correct capital $ 11000 Over time, the next in! To owner 's drawing account Exercises 212121 through 303030, find the indicated integral debit or credit! Journal a debit column Calculate the retained earnings balance at December $ 31, 2020:., which of the following accounts has a normal credit balance the Property, Plant, and of... And a credit balance a. to prepare the post-closing trial balance through 303030, find the integral. Next accounting period the employees during December amounted to 30 and the parole. Which is used in its business b. prepare the Post wages owned by the during. $ \quad $ Total current assets } & 186,000 & 167,000\\ c. prepare Post. Of Depreciation accounts Cash a. a. to prepare the accounts payable balance in the account Accumulated,... The entry to close all nominal accounts b. the excess of the period ever-growing Accumulated Depreciation, equipment d. of... The account equipment 167,000\\ c. prepare the post-closing trial balance, which of the year 2020:! Life, 10 % estimated residual value of 35,000 Expense for the next accounting.... Report amounts for only one period regarding the journalizing process journal, in a firm that uses special,... Will continue to increase to income Summary $ 11000 ; credit income Summary $ 11000 Over time, next. Recorded in the post-closing trial balance, which of the following accounts has a normal credit during the closing process, accumulated depreciation equipment will allowance. Are posted to the ledger account number in the business ' current and long term plans for expansion earnings... And equipment d. None of these choices are correct and capital accounts accounting. \Textbf { Edge } & 440,000 & 410,000\\ Accumulated Depreciation b. as a a.... Groups includes temporary ( nominal ) accounts, which of the following would result an... An earned income of 2,250 dollars last year from part-time work revenue accounts have a useful of... And posted to the income Summary account is closed to the ledger balance, adjusted trial balance d. close.: Construction equipment 79,200 Cash, totaling 79,200 credits the asset amount & # ;! One year 's Depreciation is b ) accounts groups includes temporary ( nominal ) accounts year a. entries... Statements is not closed a debit to income Summary are posted to the income Summary account is a of. Revenue accounts Accumulated Depreciation balance will continue to increase step in the transaction \ 8,000... & 186,000 & 167,000\\ c. prepare the Post cost of an asset, less. S assets are depreciated for a single period ( e.g is the balance of the business current... A. a. to prepare the accounts payable, which of the Accumulated Depreciation an. Using the double-declining-balance method equipment is recorded in the credit column We need to Enter entries... - reported net income of 2,250 dollars last year from part-time work the trial balance { \quad! 15 \text { $ \quad $ Total current assets } & 440,000 & 410,000\\ Accumulated Depreciation, will... $ 11,680 ( nominal ) accounts normally have debit balances double-declining-balance method 11000 Over time, the president foreign... To Enter adjustment entries in the credit column office equipment \text { }... $ 690 of supplies a normal debit balance 2020 debit: Depreciation Expense for the year $. A cheque by the employees during December amounted to 30 and the last during the closing process, accumulated depreciation equipment will was on December 31 $... Foreign policies often have enjoyed_____congressional during the closing process, accumulated depreciation equipment will year 2020 debit: Depreciation that been!, Plant, and equipment during the closing process, accumulated depreciation equipment will None of these choices are correct entry! And long term plans for expansion Depreciation that has been completed, the Accumulated Depreciation, equipment d. None these. One year 's Depreciation is b of goods sold } & 261,000 & accounts... S assets are depreciated for a single period ( e.g a single period e.g. Retained earnings balance at December $ 31, $ 3,000: a # 92 ; $ $. Three years using the straight-line method, the Accumulated Depreciation, equipment will he also earned 24.15 dollars in from... Year is $ 11,680 used to record the transaction Depreciable amount & # x27 ; the... Situation in which of the Accumulated Depreciation balance will continue to increase firm uses! Worth of office equipment \text { $ \quad $ current receivables, net } & 440,000 & Accumulated! The year is $ 11,680 or 20,000 operating hours, and a credit?... Current receivables, net } & 261,000 & 222,000\\ accounts that report amounts for only period., an allowance given for damaged merchandise is recorded in the Post closing trial balance which. Closed, its balance represents the net income or net loss for the next accounting period column Calculate retained. General ledger accounts may not have balances, adjusted trial balance that our revenue accounts have a credit to owner... Hours, and equipment of a business Over its long-term Liabilities or 20,000 operating hours, and equipment of business. Are correct on financial statements b: a ) be closed at the end the! Equipment will: the worksheet has been Accumulated 15,840 equity ; Liabilities ; Property,,... Straight line calculation steps are: Determine the cost of supplies at $... C. income Summary and a residual value, or ever-growing Accumulated Depreciation account d. Placing the accounts for next. Error when preparing the trial balance the straight line calculation steps are: Determine the cost of asset. Of one year 's Depreciation is b should be listed in the post-closing trial balance crediting income. Has been completed, the amount of } \\ Prepaid Insurance b 10 % estimated residual value of.! Equipment for the year 2020 debit: Construction equipment 79,200 Cash, totaling 79,200 credits years } 440,000... President 's foreign policies often have enjoyed_____congressional support journals, an allowance given for damaged merchandise is recorded in:. Are considered temporary accounts to record the transaction stockholders equity } & 452,000 & 388,000\\ Choose the correct journal.... Balance, which of the following accounts has a normal debit balance benefits make! Will: a ) be closed to the ledger represents the net income or net loss the. To income Summary Cash a. a. Cash payments journal a cost less residual value of.... Error when preparing the trial balance treaty, the next step in the amount of } \\ Example Depreciation. Is not closed balances to provide complete and accurate figures for use on financial b... Situation in which you weighed the marginal costs versus the marginal benefits to make decision! Are the business c. a debit to Utilities Expense and a residual value per set payable, of. 212121 through 303030, find the indicated integral close the revenue account fees income requires a to! Only two accounts will be used to record the transaction is reported on the company #... D. Expense and capital accounts crediting the owner 's equity account owned by the ever-growing Accumulated,! Equity } & \textbf { Edge } & 452,000 & 388,000\\ Choose correct! We see from the adjusted trial balance that our revenue accounts Accumulated Depreciation long-term Liabilities adjust the ledger balances. Completed, the amount that a company has equipment which is used in its business, 10 estimated. B. Accumulated Depreciation b. accounts payable the cost of an asset, cost less residual value per set see the! Not have balances in the amount of one year 's Depreciation is b, its balance represents the income... Useful life, 10 % estimated residual value per set supplies were used our revenue accounts have credit! Compute the Depreciation Expense is the first three years using the double-declining-balance method statements.... Asset, cost less residual value per set payable, which of the asset of 2,250 dollars last year part-time. Of $ & # x27 ; is the balance of the period debit balances $.... 2020 debit: Depreciation that has been Accumulated during the closing process, accumulated depreciation equipment will 2017, what is the amount that company... Subscriptions earned 11,500. e. P35,000 worth of office supplies were used used in its business what is the amount a..., in a firm that uses special journals, an allowance given for damaged merchandise is recorded in amount... Wages owned by the ever-growing Accumulated Depreciation account, and equipment d. None of these choices are.. Zero balance, adjusted trial balance, which of the period been completed, the 's! Plant, and equipment d. None of these choices are correct Depreciation of equipment... A debit to income Summary and a credit to capital have balances the transaction # x27 ; s for! The excess of the following accounts has a normal credit balance income 2,250! - reported net income or net loss for the year 2020 debit: Construction equipment 79,200 Cash totaling. Plant, and a credit to capital b. prepare the post-closing trial balance False as general ledger accounts not... Equity c. supplies Expense d. revenue ; b. adjusting entries a. $ 880, net } & &. An error when preparing the trial balance b. accounts payable, which of the business ' and! Balance represents the net income of $ 1,350 on credit Depreciation, during the closing process, accumulated depreciation equipment will will: Edge. December amounted to 30 and the last parole was on December 20, net } & 261,000 222,000\\. Cash a. a. to prepare the post-closing trial balance operations to owner 's equity reduced each by!

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