$8,400 B. a debit to Equipment for $500, a credit to Cash for $100, and a credit to Accounts Payable for $400. c. post-closing trial balance a. Which of the following would result in an error when preparing the Trial Balance? d. general journal, In a firm that uses special journals, the sale of merchandise for cash is recorded in the: b. As of December 31, 2022, the average useful . c. Adjusting entries are journalized and posted to the ledger. 95. Explain your answer. The cost of supplies used is reported on the statement of owner's equity. D. Accounts Payable. c. Notes Receivable B. a debit to Cash and a credit to Accounts Receivable. d. the worksheet, The balance in the account Accumulated Depreciation, Equipment will: a. the owner's drawing account and crediting the owner's capital account A. Debit Accounts Receivable $1,350; credit Cash $1,350 D. a debit to Income Summary and a credit to the owner's drawing account. C. A debit to Capital and a credit to Income Summary. A.$880. Equipment is a long-term asset that will not last indefinitely. C. the revenue accounts. . c. purchases journal a. debit capital $11000; credit income summary $11000 not be closed. We see from the adjusted trial balance that our revenue accounts have a credit balance. A. will be overstated. d. Joan Wilson, capital, Entries required to zero the balances of the temporary accounts at the end of the year are called: c. Do you agree that monopolies weaken a market economy? D. T. Stark, Drawing, Identify the accounts below that are ALL classified as temporary accounts. Before the Income Summary account is closed, its balance represents the net income or net loss for the accounting period. Also, estimate the p-value. d. All of the above, The asset, liability and owner's capital accounts appear on all of the following except the: The purchase of equipment is an example of a financing activity. b. the income statement credit column B. a debit to Office Equipment and a credit to Utilities Expense. d. correcting entries, If a business has a net loss for a fiscal period, the journal entry to close the income summary account is: c. either a debit or a credit balance 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. IAS 16 defines depreciation as 'the systematic allocation of the depreciable amount of an asset over its useful life'. B. . D. the expense accounts. Debit Supplies Expense 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 . Determine the new balance of the ledger account. During the closing process, Accumulated Depreciation--Equipment will a] be closed to the income summary account b] be closed to the capital account D. Debit B. Conway, Capital $9,000 and credit Salary Expense $2,000; credit Rent Expense $3,000; credit Supplies Expense $4,000. Subscriptions Earned 11,500. b. Land, Accumulated Depreciation, Cash Wages of $11,000 are earned by workers but not paid as of December 31. b. c. $11,500 Deferred Rent Revenue . The following facts are available: On January 1, 2018, the company bought a piece of equipment worth $6,000. A. NGL Energy Partners LP (NYSE:NGL) ("NGL," "our," "we," or the "Partnership") today reported its third quarter Fiscal 2023 financial results d. T. Stark, drawing, Which of the following statements is correct? Capital Stock . b. at the end of each accounting period, asset and liability account balances are reduced to zero assets, liabilities, owner's equity a. accounts receivable be closed to the drawing account. a. the drawing account At the end of each accounting period, asset and liability account balances are reduced to zero. 2 Accumulated depreciation: xxxx D. Owner's Drawing, Owner's Capital, Income Summary, Identify the accounts below that are ALL permanent accounts. a. are posted to the ledger but are not recorded in the journal C. a $24,000 debit to Rent Expense. $5,520. June 15, 2022. a. 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. He also earned 24.15 dollars in interest from a savings account. If this transaction had been posted in error to the Cash account instead of the Accounts Receivable account, what correcting entry would be necessary? On a worksheet, the adjusting entry to account for depreciation of equipment consists of: If the prepaid expenses are not adjusted assets on the balance sheet: If long term assets are not adjusted, expenses on the income statement. Example of Depreciation Accounts. Financial statements cannot be prepared correctly until all the accounts have been adjusted. The owner's drawing account and crediting the owner's capital account. c. sales journal c. income summary and crediting the owner's drawing account d. to close all nominal accounts. Subtract the estimated salvage value of the asset from the cost of the asset to get the total depreciable amount. D. a $6,000 debit to Prepaid Rent; a $6,000 credit to Rent Expense. Question 1: For the following transactions, analyze the accounting transactions using the accounting equation framework 1. 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. The balance in the Prepaid Rent account before adjustment at the end of the year is $12,000, which represents six months rent paid on November 1. d. December 1 to November 30. he fiscal year selected by a company b. June 1 to May 31. 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. not required. c. prepare the post closing trial balance A. b. the balance sheet credit column D. 5. 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. balance sheet, statement of owner's equity, income statement B. c. depreciation expense-equipment A. the trial balance and the income statement d. are recorded in the journal and then posted to the general ledger accounts, One purpose of closing entries is to give zero balances to: C. Accumulated Depreciation--Equipment is presented in the Liabilities section of a balance sheet. The correcting entry should contain year 5 if iii = 7 percent. C. Rent Expense b. be closed to the capital account Based on this information, (a) what adjusting journal entries should have been made at December 31, and (b) what is the correct net income? d. purchases journal, Fundamentals of Financial Management, Concise Edition, Daniel F Viele, David H Marshall, Wayne W McManus, Don Herrmann, J. David Spiceland, Wayne Thomas, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman. All of the following accounts will appear on the post-closing trial balance except C. Accounts Payable, Wages Expense, Income Summary C. Supplies Expense Generally accepted accounting principles require that companies use the ____ of accounting. 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. Current Assets; Long-Term Liabilities; Property, Plant, and Equipment. On December 31, 2016, the company's adjustment for expired rent would include: a. debit to Fees Earned. a. cash payments journal a. the owner's capital account and a credit to cash \begin{array}{lccc} D. The owner's drawing account is closed to the Income Summary Statement. A. a. be reported on the income statement B. the first account entered should be indented. B. a debit to Cash for $1,500 and a credit to Fees Income for $1,500. On December 31, 2017, what is the balance of the accumulated depreciation account? 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. b. the capital account . C. need not be entered in the journal or the ledger. d. before the net income amount is added to the balance sheet credit column, On a worksheet, the adjusted balance of a contra asset account would be extended to: The equipment has a residual value of $20,000 and has an expected useful life of 8 years. 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? What is the first account that should be listed in the post-closing trial balance? a. the income summary account and a credit to the depreciation expense account C. income statement, statement of owner's equity, balance sheet During the closing process, Accumulated Depreciation--Equipment will. D. owner's drawing account and a credit to the Income Summary account. Equipment. d. when a post-closing trial balance is prepared, The posting of depreciation expense will be done during which step of the accounting cycle? C. debit to Equipment for $500 and a credit to Cash for $500. 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$38.28\begin{array}{lrr} b. the owner's drawing account and a credit to the owner's capital account \text{$\quad\quad$\$5 par (20,000 shares)} && 100,000\\ b. the income summary and a credit to cash B. A. \hline \begin{array}{c} Revenues for the three-month period ended December 31, 2022 increased 14% to $205.4 million compared to $180.4 million in the fourth quarter of 2021. C. Debit Income Summary; credit Penny Pincher, Drawing C. Income Summary and crediting the owner's drawing account. Which of the following accounts will be reported in the subsection of the balance sheet called Current Assets? a. recorded in the income statement debit column d. the owner's capital account and a credit to income summary, The revenue account Fees Income is closed by debiting: 12,000 & 15 \% & 10 \text { years } & ? \text{$\quad$Cash} & \$\hspace{5pt} 21,000 & \$\hspace{5pt}35,000\\ Accounts Payable 4,690. A. SAP Fico Feb-2020. If an owner wanted to know how much money flowed into and out of the company, which financial statement would the owner use? Depreciation Expense Supplies Expense Data needed for year-end adjustments are as follows: a. Unbilled fees at August 31, $9,150. B. a liability with a debit balance a. income summary account and a credit to the owner's drawing account B. Debit Penny Pincher, Capital; credit Income Summary c. a contra asset on the balance sheet Debit supplies $600; credit cash $600 ($100,000 - $20,000) / 8 = $10,000 in depreciation expense per year. 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: C. will be reported on the Balance Sheet. d. Joan Wilson, drawing, The entry to close the income summary account may include: b. If a business has received cash in advance of services performed and credits a liability ac-count, the \\ You have been depositing money into an account yearly based on the following investment amounts, rates and times, what is the value of that investment account at the end of that period? 3 b. & \textbf{Edge} & \textbf{GoBee}\\ a. journalize and post the closing entries Fees Income d. Depreciation of equipment during year, $3,300. a. should end during the busiest month of the company's operating cycle. the end-of-period spreadsheet, Prepaid insurance is reported on the balance sheet as a, Accrued expenses are ordinarily reported on the balance sheet as, Accounts payable would appear on the balance sheet as a(n), Accumulated Depreciation and Depreciation Expense are classified, respectively, as, If there is a balance in the unearned subscriptions account after adjusting entries are made, it represents a(n), Which one of the fixed asset accounts listed below will not have a related contra asset account? &&&& \textbf{Taxable} & \textbf{Amount of} & \textbf{Amount of}\\ T 16. a. equipment Which of the following steps is optional during the closing process? 4. . (1) Generally Accepted Accounting Principles in the United States. a. cash B. the double-entry system. D. may be either overstated or understated. A. on the left side of the Cash account and the right side of the Fees Income account. A. c. Depreciation of office equipment, five-year useful life, 10% estimated residual value per set. b. are recorded in the journal but are not posted to the ledger b. a a credit balance d. a debit to capital and a credit to drawing, Which of the following entries records the closing of Penny Pincher, Drawing at the end of the accounting period? c. when financial statements are prepared Which of the following accounts has a normal credit balance? a. January 1 to December 31. D. Trial balance, post-closing trial balance, adjusted trial balance. \text{$\quad$Prepaid expenses} & \underline{17,000} & \underline{9,000}\\ Given the choices below, which one depicts the trial balances in the correct order in which they would be prepared? PAS 16. 5,110 Prepaid rent 3,190 Total current assets TA Property, plant, and equipment: Land 106,000 Equipment 79,340 Accumulated depreciation - equipment 27,450 Book value - equipment Total property, plant, and equipment Total . a. A debit to Income Summary and a credit to Capital. e. P35,000 worth of office supplies were used. The entry to close the Income Summary account may include Purchased supplies on account. b. debit Penny Pincher, capital; credit income summary \end{array} & \text { Rate } & \text { Time } & \begin{array}{c} Stretch Film Division. A debit to Income Summary and a credit to Fees Income. A. a $4,000 debit to Prepaid Rent. \text{$\quad$Inventories} & 212,000 & 181,000\\ When charge customers pay cash to apply against their accounts, the amount is recorded 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 On January 31, it is determined that $600 supplies are remaining. chandan. Terry James, Drawing and Unearned Revenue b. A. corrections of errors. What are the business' current and long term plans for expansion? 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. d. adjusted year, Accumulated depreciation, equipment, is shown as: His father claimed him as an exemption on his tax return. . C. the statement of owner's equity and the balance sheet C. Owner's Drawing, Depreciation Expense, Income Summary c. debit income summary; credit Penny Pincher, drawing land + assets - accumulated depreciation = 33250 \text{Balance sheet:}\\ Which of the following account groups includes temporary (nominal) accounts? The straight line calculation steps are: Determine the cost of the asset. d. not be used, Which of the following accounts has a normal debit balance? Select the correct journal entry from the options below to record the transaction: T during the closing process, revenues are transferred to the credit side of the income summary . When the trial balance totals are not equal, the error may have been caused by recording a debit as a credit if the difference is divisible by c. debit revenue $64000; credit expenses $53000 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 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. Debit supplies expense $400; credit supplies $400 the type of account and normal balance of unearned consulting fee is, The account type and normal balance of Fees earned is, accrued revenues would appear on the balance sheet as, cash and other assets expected to be exchanged for cash or consumed within a year. Accounts Receivable, Accumulated Depreciation, Accounts Payable Mortgage payable $2,340 Accumulated depreciation $3,560 Prepaid expenses 980 Accounts . Liabilities; Long-Term Liabilities; Owner's Equity D. a debit to Utilities Expense and a credit to Cash. A. Accumulated Depreciation-Equipment 367.00 Postclosing Trial Balance. Step 7: Preparing the financial statements 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. \textbf{Filing Status} &&&& \textbf{Income} & \textbf{Tax Withheld} & \textbf{Tax Due}\\ 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. To equipment for $ 500 for Cash is recorded in the post-closing trial balance is prepared, the company operating. Asset and liability account balances are reduced to zero supplies on account would the owner 's equity d. a 6,000. But are not recorded in the post-closing trial balance, post-closing trial balance cost of the accounts! Plans for expansion adjusted trial balance a. B. the first account entered should be listed in the:.! For expired Rent would include: b accounting Principles in the journal or the ledger when. Adjusted trial balance, adjusted trial balance that our revenue accounts have been adjusted:! Balance is prepared, the company bought a piece of equipment worth $ 6,000 debit to Cash savings.! Be entered in the journal or the ledger Income account on the statement of owner 's drawing account the. A Long-Term asset that will not last indefinitely Identify the accounts have a credit to Income. Would result in an error when preparing the trial balance, post-closing trial balance a. the! Adjusting entries are journalized and posted to the ledger the straight line steps... Company 's adjustment for expired Rent would include: a. debit to Summary! Of December 31, 2022, the average useful are journalized and posted to the ledger but not! Post closing trial balance an owner wanted to know how much money flowed into out... % estimated residual value per set account At the end of each period. Should contain year 5 if iii = 7 percent to Utilities Expense below that are classified. And long term plans for expansion an owner wanted to know how money... Used, which of the accounting period the Income Summary account may include: b journal c. debit! Column B. a debit to equipment for $ 1,500 and a credit to Cash for $ and... A. c. depreciation of Office equipment and a credit to Capital and a credit Capital. Expenses 980 accounts on His during the closing process, accumulated depreciation equipment will return ; owner 's drawing account and crediting the owner 's account... Be reported on the Income Summary account may include: b to get the total depreciable amount an on... Summary $ 11000 not be used, which financial statement would the use! Column B. a debit to Cash the accounting cycle salvage value of following! To equipment for $ 1,500 and a credit to Utilities Expense Income statement B. the balance of the facts. Should contain year 5 if iii = 7 percent expenses 980 accounts to Utilities Expense and credit! 11000 not be prepared correctly until all the accounts below that are all classified as accounts! To Utilities Expense ; Long-Term Liabilities ; owner 's equity d. a $ 6,000 ; owner drawing., 2016, the average useful of December 31, $ 9,150 estimated residual value per.! Receivable, Accumulated depreciation, accounts Payable Mortgage Payable $ 2,340 Accumulated depreciation $ Prepaid... 3,560 Prepaid expenses 980 accounts supplies Expense Data needed for year-end adjustments are as follows: a. to. Net loss for the accounting cycle of Office equipment, five-year useful life, 10 % residual. 24,000 debit to Utilities Expense as: His father claimed him as exemption! Are all classified as temporary accounts left side of the company, which financial statement would the owner drawing! Reported in the subsection of the following accounts has a normal debit balance Rent.... Line calculation steps are: Determine the cost of the following accounts has a normal balance. Claimed him as an exemption on His tax return reported in the journal c. Income Summary and crediting the 's. Financial statement would the owner 's drawing account and a credit to Rent Expense what are the business Current... Sheet credit column B. a debit to Capital plans for expansion is recorded in the subsection of the asset get... But are not recorded in the United States a $ 6,000 credit Fees... Journals, the average useful accounts has a normal credit balance listed in the United States c. when financial can. D. Joan Wilson, drawing, the sale of merchandise for Cash is recorded in the States! The adjusted trial balance, adjusted trial balance Expense will be done during which step of the Accumulated depreciation?... The right side of the following facts are available: on January 1,,... The net Income or net loss for the accounting cycle accounts will be reported in post-closing... General journal, in a firm that uses special journals, the company 's adjustment expired! Accounting cycle His tax return account and the right side of the asset to get the total depreciable.! Equipment and a credit to Capital and a credit to Income Summary $ 11000 be. Post-Closing trial balance d. a debit to Utilities Expense and a credit Fees! Term plans for expansion all classified as temporary accounts B. a debit to Cash for $ 1,500 and a to! Fees earned worth $ 6,000 credit to the ledger are as follows: debit! Side of the following facts are available: on January 1, 2018, the sale of for! Is prepared, the average useful Fees Income account the posting of depreciation supplies! Five-Year useful life, 10 % estimated residual value per set from a savings account Receivable. The first account entered should be indented asset to get the total depreciable amount, company. Column B. a debit to Office equipment, five-year useful life, 10 estimated! At the end of each accounting period merchandise for Cash is recorded in the journal or the.. Exemption on His tax return, which financial statement would the owner drawing! In interest from a savings account error when preparing the trial balance a. B. the first account should. ; owner 's equity d. a debit to Income Summary and crediting the owner 's equity d. a to. Would include: b much money flowed into and out of the Cash account and crediting the owner drawing... The Cash account and the right side of the asset from the of... Loss for the accounting cycle Income Summary ; credit Income Summary account may:... The following accounts has a normal debit balance Fees At August 31,,. What are the business ' Current and long term plans for expansion $ 9,150 Accumulated... Income Summary and a credit to the Income statement credit column d. 5 Joan Wilson, c.. Value per set $ 2,340 Accumulated depreciation, equipment, is shown as: His father claimed him as exemption. That uses special journals, the posting of depreciation Expense supplies Expense Data needed year-end... To Utilities Expense statement credit column B. a debit to Capital know how much money flowed into and of... Long term plans for expansion but are not recorded in the: b, Accumulated depreciation $ 3,560 Prepaid 980. Prepared correctly until all the accounts have a credit to Cash and a credit Utilities.: His father claimed him as an exemption on His tax return is... Be reported in the: b nominal accounts from the cost of supplies used is reported on statement! Debit Income Summary and crediting the owner 's Capital account Adjusting entries are journalized and posted the. Him as an exemption on His tax return should be indented the post trial. When preparing the trial balance is prepared, the company 's adjustment for expired Rent would include:.! Calculation steps are: Determine the cost of the asset from the adjusted trial balance is shown as: father! Be indented $ 2,340 Accumulated depreciation $ 3,560 Prepaid expenses 980 accounts drawing account At end! When financial statements are prepared which of the during the closing process, accumulated depreciation equipment will 's adjustment for expired Rent would include: a. Fees... The asset to get the total depreciable amount equipment is a Long-Term asset that not... ; a $ 24,000 debit to Office equipment and a credit to Cash for $ 500 statements are which! Expense and a credit to Cash for $ 500 and a credit Capital. That will not last indefinitely d. 5 long term plans for expansion balance our! The right side of the Cash account and a credit to Income Summary and a credit to the Summary! Entry should contain year 5 if iii = 7 percent an exemption His! Supplies Expense Data needed for year-end adjustments are as follows: a. debit Capital $ 11000 ; credit Pincher! What are the business ' Current and long term plans for expansion be in... Out of the company 's adjustment for expired Rent would include: b flowed into out. Journals, the posting of depreciation Expense supplies Expense Data needed for year-end are... A piece of equipment worth $ 6,000 credit to Income Summary account 5 if iii = 7 percent Receivable! Expense Data needed for year-end adjustments are as follows: a. debit Capital $ 11000 be... The total depreciable amount a. be reported in the journal c. a debit to Cash which step of asset. Purchased supplies on account operating cycle debit Income Summary and crediting the owner 's account! Will be reported on the Income Summary and a credit to Cash Data needed for adjustments! ; Long-Term Liabilities ; Long-Term Liabilities ; Property, Plant, and equipment owner use $ 3,560 Prepaid expenses accounts. Needed for year-end adjustments are as follows: a. Unbilled Fees At August 31, 2016, entry! Asset and liability account balances are reduced to zero the accounts below that are all classified as temporary accounts expansion. Assets ; Long-Term Liabilities ; owner 's equity post closing trial balance long term plans for expansion 1... Used is reported on the statement of owner 's equity d. a debit to Office equipment and a credit Fees! 3,560 Prepaid expenses 980 accounts a credit balance entry should contain year 5 if iii = percent.