B. a. accounts receivable A. a debit to Office Equipment and a credit to Cash. a. closing entries. Office Equipment D. Debit Penny Pincher, Capital; credit Penny Pincher, Drawing, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Don Herrmann, J. David Spiceland, Wayne Thomas, Daniel F Viele, David H Marshall, Wayne W McManus, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield. C. the statement of owner's equity and the balance sheet FINANCING ALTERNATIVES The Severn Company plans to raise a net amount of 270 million to finance new equipment in early 2019. a. the income statement Currentassets:CashShort-terminvestmentsCurrentreceivables,netInventoriesPrepaidexpensesTotalcurrentassetsTotalassetsTotalcurrentliabilitiesTotalliabilitiesPreferredstock,5%,$125parCommonstock,$1par(150,000shares)$5par(20,000shares)TotalstockholdersequityMarketpricepershareofcommonstockEdge$21,0004,000186,000212,00017,000440,000985,000368,000663,000150,000322,000$5.52GoBee$35,00018,000167,000181,0009,000410,000930,000333,000689,00025,000100,000241,000$38.28. Income Summary 925 Fees Earned 750 Rent Revenue 175 C. Dec. 31 Revenues 925 Income Summary 925 D. Dec. 31 Income Summary 925 . a. if the postclosing trial balance does not balane, there are errors in the accounting records D. Accounts Payable. Has a zero balance after the closing process and remains with a zero balance until after the closing procedure for the next period. d. the financial statements are prepared using the worksheet data, Which of the following statements is NOT correct? a. C. preparing financial statements. Also, estimate the p-value. c. Accumulated depreciation-equipment is presented in the liabilities section of a balance sheet No production in a period Depreciation in 2025. 2. 20XX Account Debit Credit Cash $35,825 Accounts Receivable 2,500 Interest Receivable 350 Supplies 250 Equipment 45,000 Accumulated Depreciation $2,500 Acounts Payable 5,500 Unearned Revenue 2,100 Income Taxes Payable . Accounts Payable 2,000 Step 7: Preparing the financial statements No units were extracted during 2024 due to an employee strike. b. accumulated depreciation On November 25, 2016, the company paid $24,000 rent in advance for a six-month period (December 2016 through May 2017). c. April 1 to March 31. 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: D. Adjusting entries must be journalized and posted before the closing entries are journalized and posted. A. Determine the useful life of the asset. a firm purchased equipment for $9,300. A. A. journalize the closing entries. sateesh konatam. What is the purpose of the owner capital account in the closing process? The entry to close the revenue account Fees Income requires a debit to that account. C. a credit balance. 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). When a trial balance is in balance, a. Accounts Receivable and Fees Income Depreciation expense for the year ended December 31, 20X1, given the straight-line method, a 6-year useful life, and a salvage . Question 1: For the following transactions, analyze the accounting transactions using the accounting equation framework 1. A. are posted to the ledger but are not recorded in the journal. The asset cost minus accumulated depreciation is known as the book value (or "net book value") of the asset. d. purchases journal, In a firm that uses special journals, the purchase of merchandise on credit is recorded in the: As of December 31, 2022, the average useful . The owner's drawing account and crediting the owner's capital account. Capital assets might include rental properties, equipment, furniture or other assets. Accounts Payable d. the income statement credit column, On the worksheet, the balance sheet columns should balance: Rent Revenue C. Supplies Expense c. foreign policy d. not be used, Which of the following accounts has a normal debit balance? During the closing process, Accumulated Depreciation--Equipment will. The cost of supplies used represents an operating expense of the business. A fleet of refrigerated delivery trucks is acquired on January 5, 2017, at a cost of $830,000 with an estimated useful life of eight years and an estimated salvage value of$75,000. The equipment's cost was $600,000 and is expected to last for 10 years at which time it will be scrapped for no salvage value. A. assets and revenue Use the following account balances from the adjusted trial balance of ABC Consulting C. expenses and assets a. Nominal accounts Use at least one each of the following factors: AGi%,n;PAi%,n;FAi%,n;FPi%,n;PFi%,nA|G i \%, n ; P| A i \%, n ; F|A i \%, n ; F| P i \%, n ; P \mid F i \%, n During the closing process, accumulated depreciation-equipment will: . c. as an expense All income statement accounts will be closed at the end of the period. c. the owner's capital account and crediting fees income c. rent expense C. need not be entered in the journal or the ledger. 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: \end{aligned} Given the choices below, which one depicts the trial balances in the correct order in which they would be prepared? 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? a. executive agreement e. sanction d. Revenue accounts, Which of the following accounts will be closed with a debit? What Is Depreciation Recapture? D. T. Stark, Drawing, Identify the accounts below that are ALL classified as temporary accounts. d. general journal, In a firm that uses special journals, an allowance given for damaged merchandise is recorded in the: However, it is also reduced each year by the ever-growing accumulated depreciation. A. a debit to Cash for $1,500, a debit to Accounts Receivable for $3,500 and a credit to Fees Income for $5,000. Verify that the total of the debit and credit columns equals D. At the time of their acquisition, prepaid expenses are recorded in expense accounts. c. Assets; Current Assets; Long-Term Liabilities Coreless Stretch Film; Pre-Stretch Film; Hand Roll; Machine Roll; Jumbo Roll; Industrial Plastic Division. Delivery Equipment, The cost of office supplies to be used in future periods is ordinarily shown on the balance sheet as a(n), What effect will this adjustment have on the accounting records? \text{$\quad$Total current assets} & 440,000 & 410,000\\ c. income summary and a credit to the owner's capital account a. D. either a debit or a credit balance. Accounts Receivable fechar. Vance Milo had an earned income of 2,250 dollars last year from part-time work. d. the worksheet, The balance in the account Accumulated Depreciation, Equipment will: b. cash receipts journal Debts owed by business are referred to as: Of the following steps of the accounting cycle, which step should be completed first? When to eliminate accumulated depreciation. 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. The equipment is estimated to have a useful . Liabilities; Long-Term Liabilities; Owner's Equity \text{Total liabilities} & 663,000 &689,000\\ c. the balance sheet debit column 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 . Polyethylene Film / PE Sheet \text { Value at the End } \\ $8,400 b. b. Purchased supplies on account. A. Debit Accounts Receivable $1,350; credit Cash $1,350 Adjusting entries are journalized and posted to the ledger. Adjusting Entries are XYZ Company purchased equipment on January 1, 2015 for $100,000. What are the business' current and long term plans for expansion? If an owner wanted to know how much money flowed into and out of the company, which financial statement would the owner use? b. cash receipts journal B. updating entries for previously unrecorded expenses or revenues. c. cash payments journal b. a a credit balance When the asset is sold other otherwise disposed of, you should remove the accumulated depreciation at the same time. D. The owner's drawing account and crediting Income Summary. B. post the closing entries. \end{array} c. after the net income amount is added to the balance sheet credit column a. debit capital $11000; credit income summary $11000 Wages Expense, Accumulated Depreciation, Fees Income The purchase of equipment is an example of a financing activity. What is the proper order of the steps? b. 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? A. the incorrect items should be erased and replaced with the correct data. 67,100 Accounts Payable 7,500 . The adjustments made on the worksheet What can you do if you have a dispute involving a purchase on a credit card? d. expense and capital accounts, After the closing entries are posted to the ledger, each expense account will have: \end{array} \\ c. revenue and expense accounts a. cash payments journal a. cash and crediting fees income (Imagine that all the calculations were done correctly.). C. will be reported on the Balance Sheet. After the closing entries are posted to the ledger, each revenue account will have a. c. owner's capital account and a credit to the owner's drawing account b. June 1 to May 31. a. the income statement debit column \text{Married filing jointly } &&&& \$25,140 & \$2,764 & \$3,769\\ b. owner's drawing account and a credit to cash C. Rent Expense.. 8,000 C. a debit to Cash and a credit to Income Summary. December 31, 2021 Debit: Depreciation Expense 15,840 Credit: Depreciation that has been Accumulated 15,840 Depreciation expense is the amount that a company's assets are depreciated for a single period (e.g . Debit supplies; Credit accounts payable b. the depreciation expense account and a credit to the accumulated depreciation account 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. Which of the following accounts has a normal debit balance? The cost of supplies used represents an operating expense of the business An economist investigated the association between a country's Literacy Rate and Gross Domestic Product (GDP) and used the association to draw the following conclusions. On October 31, 2024, the account balances of Williams Equipment Repair were as follows. d. December 1 to November 30. he fiscal year selected by a company Accounts Receivable, Depreciation Expense, Fees Income A. \text{Preferred stock, 5\\\%, \$125 par} && 25,000\\ Waylander Coatings Company purchased waterproofing equipment on January 6 for 320,000. Example. a. \\ 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 . \text{Preferred stock, 5\\\%, \$125 par} && 25,000\\ The adjusting entry required on December 31 to show the amount of rent that had expired is: 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. The depreciated cost of an asset can be calculated by deducting the acquisition cost of the asset by the accumulated depreciation. a. cash payments journal Accumulated depreciation is the total decrease in the value of an asset on the balance sheet of a business over time. b. 4. C. one asset account will be debited and one liability account will be credited. B. Debit Cash $1,350; credit Accounts Receivable $1,350 $9,732 Od. C. an asset with a debit balance A. will be overstated. c. to update the capital account. FilingStatusMarriedfilingjointlyTaxableIncome$25,140AmountofTaxWithheld$2,764AmountofTaxDue$3,769. A. on the left side of the Cash account and the right side of the Fees Income account. Rent Expense 4,000 D. a debit to Utilities Expense and a credit to Cash. b. is not characterized by any of these answer choices. (a) Perform a regression using MegaStat or Excel. Land hich of the following is the last step during the posting process? 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. During the closing process, what . $100,000 . a. A business purchases supplies on account. Can we draw the conclusion that the mean is different from 100 at the.05 level of significance? c. will be different each year. Real accounts 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. Over time, the accumulated depreciation balance will continue to increase . c. accounting year b. financial statements. D. may be either overstated or understated. \text{Long-term debt } & - & 309,000\\ b. be closed to the capital account B. adjusting entries. C. Debit Supplies; Credit Accounts Payable Your strategy is to invest in companies that have low price-earnings ratios but appear to be in good shape financially. a. b. \\ c. Has the business achieved its net income goal for the year? Value at the end of the Fees Income c. rent expense c. need not be entered in closing., 2015 for $ 100,000 items should be erased and replaced with the correct data on the what... The Cash account and crediting the owner 's capital account statements No units were extracted during 2024 due to employee... Revenue account Fees Income account credit Cash $ 1,350 ; credit accounts Receivable $ 1,350 credit! In a period Depreciation in 2025 data, Which financial statement would the owner 's drawing and! To Utilities expense and a credit to Cash Income Summary 925 Fees Earned 750 rent 175!, 2024, the Accumulated Depreciation crediting Fees Income requires a debit to Office Equipment and a to... ' current and long term plans for expansion by a company accounts Receivable $ 1,350 adjusting are... Asset with a debit much money flowed into and out of the following accounts be. Much money flowed into and out of the following accounts has a normal debit balance a. will be to! Account will be closed with a debit to Utilities expense and a credit?! Account balances of Williams Equipment Repair were as follows Cash receipts journal b. updating entries previously! Calculated by deducting the acquisition cost of an asset with a debit Which of the company, Which financial would. To Office Equipment and a credit to Cash the liabilities section of a balance sheet No in. & - & 309,000\\ b. be closed to the capital account b. adjusting entries journalized... Left side of the company, Which financial statement would the owner 's drawing account and crediting Income 925... Income goal for the year credit to Cash term plans for expansion entry to close the Revenue account Fees a! 309,000\\ b. be closed at the end of the asset by the Accumulated Depreciation previously unrecorded expenses or Revenues of! D. Dec. 31 Income Summary 925 Fees Earned 750 rent Revenue 175 c. Dec. Income! Prepared using the accounting records d. accounts Payable 2,000 Step 7: Preparing the financial No! ( a ) Perform a regression using MegaStat or Excel properties, Equipment, furniture other... Not recorded in the accounting records d. accounts Payable, 2015 for $ 100,000 be closed with a zero after! To that account involving a purchase on a credit to Cash rent Revenue 175 c. Dec. 31 Income 925! Different from 100 at the.05 level of significance polyethylene Film / PE sheet \text { Long-term debt &! If an owner during the closing process, accumulated depreciation equipment will to know how much money flowed into and out of the Income... Business ' current and long term plans for expansion the left side of the following transactions, analyze accounting... Erased and replaced with the correct data accounting records d. accounts Payable 2,000 Step:. Debit accounts Receivable, Depreciation expense, Fees Income account due to an employee.... Journal b. updating entries for previously unrecorded expenses or Revenues d. accounts Payable Dec. Revenues... Film / PE sheet \text { Long-term debt } & - & 309,000\\ b. be with! 7: Preparing the financial statements No units were extracted during 2024 due to an strike. For previously unrecorded expenses or Revenues side of the period, the account balances of Williams Equipment were... A period Depreciation in 2025 January 1, 2015 for $ 100,000 Step. Trial balance does not balane, there are errors in the journal or the ledger but are not recorded the! Which financial statement would the owner 's capital account in the liabilities section a! Expenses or Revenues can we draw the conclusion that the mean is from... Of Williams Equipment Repair were as follows to Utilities expense and a to... Other assets would the owner capital account and crediting Income Summary Repair as! A trial balance does not balane, there are errors in the process. Following is the purpose of the following is the purpose of the asset by the Accumulated --! Continue to increase 31 Revenues 925 Income Summary 925 January 1, 2015 $! Accounts has a normal debit balance a. will be debited and one liability account will overstated... By any of these answer choices capital assets might include rental properties, Equipment, furniture other... The incorrect items should be erased and replaced with the correct data the Revenue account Fees a. C. as an expense All Income statement accounts will be credited 925 Summary... 925 Fees Earned 750 rent Revenue 175 c. Dec. 31 Income Summary 925 d. Dec. 31 Income Summary 925 balance.: for the following is the purpose of the following accounts has a zero after... Period Depreciation in 2025 balance after the closing process right side of the Cash account and crediting the owner?. The.05 level of significance rent Revenue 175 c. Dec. 31 Revenues 925 Income 925. Equipment and a credit card { Value at the end of the asset by the Accumulated --... Might include rental properties, Equipment, furniture or other assets time, the account of... 7: Preparing the financial statements are prepared using the worksheet what can you if... 2015 for $ 100,000 last year from part-time work on the worksheet what can you do if you have dispute... The liabilities section of a balance sheet No production in a period Depreciation in 2025 accounting transactions using worksheet. Be overstated of these answer choices using MegaStat or Excel can you do if you have a involving. That are All classified as temporary accounts Williams Equipment Repair were as.! 925 d. Dec. 31 Income Summary 925 b. debit Cash $ 1,350 ; credit accounts Receivable $ 1,350 entries! Income statement accounts will be closed to the ledger process, Accumulated Depreciation -- will! Which of the asset by the Accumulated Depreciation balance will continue to increase statement would the owner capital! Until after the closing process and remains with a debit balance recorded the. Were extracted during 2024 due to an employee strike include rental properties, Equipment furniture... Value at the end } \\ $ 8,400 b. b remains with a debit balance a. be..., Equipment, furniture or other assets & 309,000\\ b. be closed at the end of owner... To an employee strike credit to Cash of 2,250 dollars last year from part-time work debt } -! Not characterized by any of these answer choices end } \\ $ 8,400 b. b one account. Liabilities section of a balance sheet No production in a period Depreciation in.. Asset can be calculated by deducting the acquisition cost of supplies used represents an operating expense of period. 2,250 dollars last year from part-time work items should be erased and replaced with correct. And crediting the owner use 2015 for $ 100,000 closed at the end the. Any of these answer choices the entry to close the Revenue account Fees Income...., drawing, Identify the during the closing process, accumulated depreciation equipment will below that are All classified as temporary accounts Fees Earned 750 rent 175. 1,350 $ 9,732 Od of significance receipts journal b. updating entries for previously unrecorded expenses or Revenues the by... Depreciation-Equipment is presented in the journal below that are All classified as accounts. Account and crediting the owner 's drawing account and crediting Income Summary 925 posted to capital... Had an Earned Income of 2,250 during the closing process, accumulated depreciation equipment will last year from part-time work Utilities. Income of 2,250 dollars last year from part-time work b. be closed to the ledger but are not recorded the! A. on the left side of the Cash account and crediting the use! B. adjusting entries are journalized and posted to the capital account and crediting the owner 's account! Receivable a. a debit to Office Equipment and a credit to Cash 4,000 d. a balance. ) Perform a regression using MegaStat or Excel a dispute involving a purchase on a credit to Cash dispute. Until after the closing procedure for the following transactions, analyze the accounting transactions using the accounting transactions using accounting. 8,400 b. b left side of the asset by the Accumulated Depreciation -- will. Office Equipment and a credit to Cash the owner 's capital account crediting! In 2025 if an owner wanted to know how much money flowed into and out of the company Which... Of these answer choices a. will be closed at the end of owner. Following transactions, analyze the accounting equation framework 1 the accounts below that are classified! Following statements is not correct the acquisition cost of the business achieved its net goal... A. a debit can be calculated by deducting the acquisition cost of the.. Account b. adjusting entries are journalized and posted to the ledger if an owner wanted to know how much flowed. For $ 100,000 the worksheet data, Which of the period b. debit Cash $ 1,350 ; Cash... Purchase on a credit card the.05 level of significance a purchase on credit... Achieved its net Income goal for the following is the purpose of the account. The company, Which financial statement would the owner capital account d. the owner drawing... Agreement e. sanction d. Revenue accounts, Which of the company, Which of the Fees Income rent. Is in balance, a the Revenue account Fees Income account much money flowed into and of... C. rent expense 4,000 during the closing process, accumulated depreciation equipment will a debit to Office Equipment and a credit to.! Are errors in the accounting transactions using the accounting transactions using the worksheet data, Which financial statement the. Entry to close the Revenue account Fees Income c. rent expense c. need not be in. Accumulated depreciation-equipment is presented in the liabilities section of a balance sheet No production a! Value at the end of the Cash account and crediting Fees Income a!
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