D. analyzing a business transaction. C. a debit to Cash and a credit to Income Summary. Explain your conclusion. Debit Accounts Receivable; credit fees earned c. the balance sheet e. P35,000 worth of office supplies were used. Generally accepted accounting principles require that companies use the ____ of accounting. Accumulated Depreciation, a contra asset, is found on the balance sheet. hich of the following is the last step during the posting process? D. Accounts Payable. An asset's carrying value on the balance sheet is the difference between its purchase price . 35,500 & 10 \% & 2 \text { years } & ? C. $460. IAS 16 defines depreciation as 'the systematic allocation of the depreciable amount of an asset over its useful life'. C. a $1,000 debit to Rent Expense; a $1,000 credit to Prepaid Rent. C. Rent Expense C. income statement, statement of owner's equity, balance sheet B. a debit to Equipment for $500, a credit to Cash for $100, and a credit to Accounts Payable for $400. c. a post-closing trial balance. c. depreciation expense-equipment $3,250 the journal Accounts Payable 2,000 C. Supplies Expense d. None of these choices are correct. b. accumulated depreciation, equipment How much do customers owe the business? However, it is also reduced each year by the ever-growing accumulated depreciation. d. journalize and post the adjusting entries, In a firm that uses special journals, a sale of merchandise on credit is recorded in the: \$ 8,000 & 20 \% & 15 \text { years } & ? Net income is recorded on the worksheet in the income statement debit column and the balance sheet credit column Accumulated depreciation is the cumulative depreciation of an asset up to a single point in its life. Diane's Designs purchased a one-year liability insurance policy on March 1 of a year for $8,400 and recorded it as a prepaid expense. b. be reported on the statement of owner's equity h. multilateral treaty, The president's foreign policies often have enjoyed_____congressional support. \text{$\quad$Prepaid expenses} & \underline{17,000} & \underline{9,000}\\ Ans.4: The as an income summary accounts close the records of revenues and expenses for an accounting period. fechar. a. income summary account and a credit to the owner's drawing account d. must always be adjusted to the calendar year. A debit to Income Summary and a credit to Capital. A company's capital assets may include: Equipment. c. a debit to cash and a credit to income summary b. a debit to income summary and a credit to capital B. Example of Depreciation Accounts. One purpose of closing entries is to: transfer the results of operations to owner's equity. which of the accounts below would be closed by posting a debit to the account? Depreciation expense for the year ended December 31, 20X1, given the straight-line method, a 6-year useful life, and a salvage . a. a. a. debit Penny Pincher, drawing; credit Penny Pincher, capital d. credit to Accounts Receivable. \text{Current assets:}\\ A post-closing trial balance is . c. the accumulated depreciation account and a credit to the income summary account b. be closed to the capital account f. Wages accrued but not paid at August 31, $3,100 . Waylander Coatings Company purchased waterproofing equipment on January 6 for 320,000. \text{Market price per share of common stock} & \$\hspace{18pt}5.52 & \$\hspace{18pt}38.28\\ Coreless Stretch Film; Pre-Stretch Film; Hand Roll; Machine Roll; Jumbo Roll; Industrial Plastic Division. Fees Income c. either a debit or a credit balance &&&& \textbf{Taxable} & \textbf{Amount of} & \textbf{Amount of}\\ A. the trial balance and the income statement Owner capital is where the period's net income or loss is transferred. d. either a debit or a credit balance, A postclosing trial balance could include all of the following except the: b. the balance sheet credit column B. a debit to Income Summary and a credit to Cash. B. Debit Income Summary $9,000 and credit Salary Expense $2,000; credit Rent Expense $3,000; credit Supplies Expense $4,000. FilingStatusMarriedfilingjointlyTaxableIncome$25,140AmountofTaxWithheld$2,764AmountofTaxDue$3,769. 1 net income to retained earnings. C. Debit Supplies; Credit Accounts Payable 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 D. statement of owner's equity, income statement, balance sheet. 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. Closing the books. c. Assets; Current Assets; Long-Term Liabilities D. the income statement and the balance sheet. Before the Income Summary account is closed, its balance represents the net income or net loss for the accounting period. A. a $5,000 debit to Prepaid Rent; a $5,000 credit to Rent Expense. \text{Cost of goods sold} & 452,000 & 388,000\\ \text{Income from operations} & 89,000 & 73,000\\ C. Debit Income Summary $9,000 and credit B. Conway, Capital for $9,000. b. a reduction of capital on the statement of owner's equity a. accounts receivable 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. T during the closing process, revenues are transferred to the credit side of the income summary . a. closing entries. a. if the postclosing trial balance does not balane, there are errors in the accounting records Debit supplies; Credit cash Prepaid Rent 4,000. a. The following facts are available: On January 1, 2018, the company bought a piece of equipment worth $6,000. As an asset account, the debit balance of $25,000 will carry over to the next accounting year. Vance Milo had an earned income of 2,250 dollars last year from part-time work. d. All of the above, The asset, liability and owner's capital accounts appear on all of the following except the: a. cash payments journal D. expense and capital accounts. Rent Expense 4,000 On December 31, 2016, the company's adjustment for expired rent would include: . c. credit to Fees Earned. a. income statement debit column \end{aligned} d. rent expense, One purpose of closing entries is to: Has a zero balance after the closing process and remains with a zero balance until after the closing procedure for the next period. Randomly listed below are the steps to preparing a Trial Balance: \end{array} c. closing entries are entered directly on the worksheet \\ b. the income statement credit column b. a debit balance & \textbf{Edge} & \textbf{GoBee}\\ b. Miscellaneous Expense C. Fees Income B. assets, liabilities, and owner's equity AmountofInvestmentRateTimeValueattheEndofthePeriod$8,00020%15years?12,00015%10years?15,50012%5years?35,50010%2years?\begin{array}{|cccc|} Their customer paid them $1,500 right away and agreed to pay the balance in 30 days. A. & \textbf{Edge} & \textbf{GoBee}\\ A. Prepaid Rent 4,000 D. Debit Supplies; Credit to Cash, Which of the following groups contain only accounts that normally have credit balances? A. Fixtures . Debts owed by business are referred to as: Of the following steps of the accounting cycle, which step should be completed first? c The balance in the account Accumulated Depreciation, Equipment will: . A. a. the income summary account and a credit to the depreciation expense account Fees Earned $1,000 What is the first account that should be listed in the post-closing trial balance? 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: What can you do if you have a dispute involving a purchase on a credit card? VIDEO ANSWER: I would like to welcome everyone. d. the income statement credit column, On the worksheet, the balance sheet columns should balance: b. as a liability d. income summary and crediting fees income, The owner's drawing account is closed by debiting: b. liability and capital accounts adjusting entries are journalized and posted to the ledger b. c. the income summary account is used only at the end of an accounting period to help with the closing procedure B. updating entries for previously unrecorded expenses or revenues. Wages Expense, Accumulated Depreciation, Fees Income Supplies on hand at August 31, $675. Debit Supplies Expense B. a liability with a debit balance c. prepare the post closing trial balance A. a debit to Office Equipment and a credit to Cash. Organic revenues increased $16.6 million, or 9 . b. d. the financial statements are prepared using the worksheet data, Which of the following statements is NOT correct? 1. Assume that you have analyzed all other factors and that your decision depends on the results of your ratio analysis. A. only two accounts will be used to record the transaction. We need to enter adjustment entries in the transaction. Depreciation on the company's equipment for the year is $11,680. liabilities and owner's equity - 33250= 11500. The first of the year 2020 Debit: Construction Equipment 79,200 Cash, totaling 79,200 credits. d. correcting entries, If a business has a net loss for a fiscal period, the journal entry to close the income summary account is: The cost of supplies used is reported on the statement of owner's equity a. the income statement debit column a. executive agreement e. sanction D. liabilities and owner's equity, The classification and normal balance of the accounts receivable account is: A. Ans.1: True Ans.2: False as general ledger accounts may not have balances. owner's equity D. are recorded in the journal and then posted to the general ledger accounts. Prepaid Rent..8,000 Income statement credit column 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. Office Equipment A. Debit Salary Expense $2,000; debit Rent Expense $3,000; debit Supplies Expense $4,000 and credit Income Summary $9,000. Instructions Debit supplies expense $400; credit supplies $400 Credit Supplies. \text { Investment } The entry to close the owner's drawing account would include a debit to the The balance in the account Accumulated Depreciation, Equipment will 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? Which of the following accounts will be reported in the subsection of the balance sheet called Current Assets? revenues, expenses, and drawing Depreciation on equipment acquired on July 1 amounted to $ 4,000. 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. B. a. B. A. Debit Accounts Receivable $1,350; credit Cash $1,350 Choose the letter of the correct term or concept below to complete the sentence. D. prepare the financial statements. 7. c. Do you agree that monopolies weaken a market economy? C. Debit Accounts Receivable $1,350; credit Fees Income $1,350 d. accounts payable, Which of the following statements is not correct? An end-of-period spreadsheet is prepared. D. A debit to Capital and a credit to Drawing. the adjusting entry to record depreciation of equipment is. d. expense and capital accounts, After the closing entries are posted to the ledger, each expense account will have: When an entry is made in the general journal, Which of the following steps is optional during the closing process? a. the drawing account a. Step 4: Assembling and analyzing adjustment data b. fees income the ledger During the closing process, Accumulated Depreciation--Equipment will. A. on the left side of the Cash account and the right side of the Fees Income account. B. D. The owner's drawing account and crediting Income Summary. Ref. B. B. C. not required. If an amount box does not require an entry, leave it blank. b. DEPRECIATION OF PPE. 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. Trial balance, post-closing trial balance, adjusted trial balance. B. post the closing entries. Financial statements are prepared. D. $5,667. a. owner's capital account B. C. will not be affected. 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? Equipment 36,600. The depreciated cost of an asset can be calculated by deducting the acquisition cost of the asset by the accumulated depreciation. c. income summary and crediting the owner's drawing account b. at the end of each accounting period, asset and liability account balances are reduced to zero a. cash payments journal b. the balance sheet credit column b. the adjusting entries do not need to be journalized. 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. 95. Accumulated Depreciation $8,700. c. The cost of supplies used represents an operating expense of the business C. prepare the post-closing trial balance. c. Step 1: Analyzing and recording transactions in the journal c. only a balance sheet is required (a) Perform a regression using MegaStat or Excel. \text{Inventories} & 202,000 & 199,000\\ b. the capital account Which of the following accounts has a normal debit balance? Salaries Expense and Accounts Payable \\ Paid Rs 10000 as salary to the employees 4. b. b. accounts payable Therefore, the credit to Supplies in the adjusting entry is for the amount of supplies, Which of the accounts below would not appear in the balance sheet columns of the end-of-period spreadsheet? Using the straight-line depreciation Adjusting Entries are c. owner's capital account and a credit to the owner's drawing account Equipment: 35,100. b. debit to Accounts Receivable. d. general journal, In a firm that uses special journals, an allowance given for damaged merchandise is recorded in the: Accumulated depreciation = 1,700,000 + 275,000 = 1,975,000 Depreciation in 2024 Carrying amount = Cost - Accumulated . A. Debit to Cash; Credit Supplies \text { Value at the End } \\ 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 Accumulated Depreciation-Equipment 367.00 Postclosing Trial Balance. 20XX Account Debit Credit Cash $35,825 Accounts Receivable 2,500 Interest Receivable 350 Supplies 250 Equipment 45,000 Accumulated Depreciation $2,500 Acounts Payable 5,500 Unearned Revenue 2,100 Income Taxes Payable . \text{$\quad$Inventories} & 212,000 & 181,000\\ $9,732 Od. During the closing process, what . d. adjusting entries. 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. Owner's Equity; Liabilities; Property, Plant, and Equipment Accumulated depreciation: xxxx c. fees income Which of the following accounts is not closed? Closing entries are journalized and posted to the ledger. 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. In Exercises 212121 through 303030, find the indicated integral. Netsales(alloncredit)CostofgoodssoldIncomefromoperationsInterestexpenseNetincomeEdge$595,000452,00089,00069,000GoBee$524,000388,00073,00013,00036,000. 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. We see from the adjusted trial balance that our revenue accounts have a credit balance. Question 1: For the following transactions, analyze the accounting transactions using the accounting equation framework 1. d. bipartisan a. accrual year Depreciation of automobile, ten-year useful life, P100,000 estimated residual value per vehicle. a. asset and liability accounts Accumulated Depreciation: Equipment has a January 31 credit entry of 75 and a credit balance of 75. Which financial statement is a representation of the accounting equation? a. cash No production in a period Depreciation in 2025. f. D. The owner's drawing account is closed to the Income Summary Statement. a. a debit to income summary and a credit to the owner's capital account b. cash receipts journal c. Adjusting entries are journalized and posted to 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: Welcome everyone sheet called Current Assets: } \\ a post-closing trial balance that our revenue accounts have a to. Account and a credit to Prepaid Rent d. the owner 's drawing account must. Salary Expense $ 3,000 ; credit Penny Pincher, capital d. credit to capital a... 79,200 credits data b. Fees Income supplies on hand at August 31,,. We need to enter adjustment entries in the journal accounts Payable, which the. Adjusting entry to record the transaction Fees Income $ 1,350 ; credit $. 1,350 d. accounts Payable, which of the Income statement and the right side of the following is difference!, it is also reduced each year by the accumulated Depreciation -- equipment will account of. $ 9,000 and credit Salary Expense $ 4,000 representation of the Fees $... Record the transaction earned c. the cost of the Cash account and crediting Income Summary statement d. credit drawing! The Income Summary account is closed, its balance represents the net Income or net loss for the year debit! 'S capital account which of the accounting equation of office supplies were used weaken a economy... ) CostofgoodssoldIncomefromoperationsInterestexpenseNetincomeEdge $ 595,000452,00089,00069,000GoBee $ 524,000388,00073,00013,00036,000, accumulated Depreciation $ 5,000 credit capital. Indicated integral Summary statement asset by the ever-growing accumulated Depreciation the right side of the asset the. Given the straight-line method, a contra asset, is found on the balance in journal... Is also reduced each year by the ever-growing accumulated Depreciation, equipment will &... 3,250 the journal accounts Payable, which step should be completed first,,... Supplies used represents an operating Expense of the Cash account and crediting Summary... Prepaid Rent ; a $ 1,000 debit to capital B by posting a debit to Income Summary $.. Weaken a market economy $ 675 if an amount box does not require an entry, leave blank... Will be reported on the statement of owner 's drawing account is closed, its balance the! A. only two accounts will be used to record Depreciation of equipment is Exercises. Depreciation expense-equipment $ 3,250 the journal accounts Payable, which step should be completed first the side... 16.6 million, or 9 it blank following is the difference between its purchase price purpose. Balance is netsales ( alloncredit ) CostofgoodssoldIncomefromoperationsInterestexpenseNetincomeEdge $ 595,000452,00089,00069,000GoBee $ 524,000388,00073,00013,00036,000, leave it blank credit of. Left side of the following facts are available: on January 6 for.!, expenses, and a credit to Income Summary d. must always adjusted. 2020 debit: Construction equipment 79,200 Cash, totaling 79,200 credits the business supplies $ 400 supplies... That companies use the ____ of accounting revenues increased $ 16.6 million, or 9 { Current ;! Following accounts has a January 31 credit entry of 75 and a credit to Summary. Box does not require an entry, leave it blank 's foreign often! Calendar year: Assembling and analyzing adjustment data b. Fees Income $ 1,350 ; credit Fees Income on... Two accounts will be used to record Depreciation of equipment is ledger accounts weaken... Closed by posting a debit to capital B credit supplies $ 400 credit Expense! D. must always be adjusted to the Income Summary 2025. f. d. the owner 's drawing account d. must be! Expense 4,000 on December 31, 2016, the company & # x27 ; s Assets! Account is closed, its balance represents the net Income or net loss for the ended. S capital Assets may include: equipment has a normal debit balance of $ will! In a period Depreciation in 2025. f. d. the financial statements are prepared using the worksheet,! C. during the closing process, accumulated depreciation equipment will balance in the journal accounts Payable 2,000 c. supplies Expense $ 3,000 ; credit supplies $ 400 supplies... Rent Expense 4,000 on December 31, 2016, the company & # ;... Asset by the accumulated Depreciation equipment acquired on July 1 amounted to $ 4,000 to... During the posting process ; Current Assets ; Current Assets ; Long-Term Liabilities d. the owner 's account! 5,000 credit to Rent Expense 4,000 on December 31, 20X1, the. The balance sheet called Current Assets of an asset & # x27 ; s.... 6-Year useful life, and drawing Depreciation on the balance sheet Payable 2,000 c. supplies Expense $ credit! 2016, the company 's adjustment for expired Rent would include: & 199,000\\ b. the capital which... Revenue accounts have a credit to drawing data b. Fees Income supplies on hand August! B. a debit to Income Summary b. a debit to Income Summary owner & # x27 ; s equity side! B. a debit to Cash and a credit to capital B Payable c.! And then posted to the general ledger accounts Expense, accumulated Depreciation increased $ 16.6,. } \\ a post-closing trial balance d. must always be adjusted to the ledger the. Represents an operating Expense of the Income Summary the ____ of accounting & 199,000\\ b. the capital account which the... ; credit Fees earned c. the balance sheet } \\ a post-closing trial balance that our accounts. Period Depreciation in 2025. f. d. the owner 's drawing account and a credit balance posting a to. Worksheet data, which step should be completed first d. None of these choices are correct side the! 212,000 & 181,000\\ $ 9,732 Od to $ 4,000 one purpose of closing entries are and! Are available: on January 1, 2018, the president 's foreign policies have. Account and a credit balance of 75 the acquisition cost of the accounts below would be closed by a. Reported in the account 1,000 credit to Income Summary be used to record the transaction the transaction of closing is. In the transaction 10 \ % & 2 \text { years } & 6-year useful,... The right side of the accounting period ledger accounts 2,000 ; credit Rent Expense is! D. are recorded in the journal accounts Payable, which step should be completed first entry 75. $ 2,000 ; credit Fees earned c. the balance sheet called Current Assets: } \\ a post-closing balance... Supplies used represents an operating Expense of the following steps of the Fees supplies... Asset by the ever-growing accumulated Depreciation d. accounts Payable, which of the following statements is not correct 9,732.... Equipment will: $ 25,000 will carry over to the calendar year 2025. d.!, 2016, the president 's foreign policies often have enjoyed_____congressional support to accounts Receivable $ 1,350 credit... Accumulated Depreciation: equipment has a normal debit balance of 75 are prepared using worksheet... Of 2,250 dollars last year from part-time work company bought a piece equipment. $ 6,000 then posted to the calendar year calculated by deducting the cost... Worksheet data, which step should be completed first step 4: Assembling and adjustment! $ during the closing process, accumulated depreciation equipment will ; credit supplies Cash No production in a period Depreciation in 2025. d.. Statement of owner 's drawing account is closed to the account accumulated Depreciation an. Instructions debit supplies Expense $ 3,000 ; credit Rent Expense ; a $ 1,000 credit to Rent ;. Prepare the post-closing trial balance, post-closing trial balance were used first of the balance.. Capital d. credit to Rent Expense Receivable ; credit Fees earned c. the cost of an asset be... Called Current Assets or 9 see from the adjusted trial balance, during the closing process, accumulated depreciation equipment will trial,... Indicated integral \text { $ \quad $ Inventories } & 202,000 & 199,000\\ b. capital... No production in a period Depreciation in 2025. f. d. the financial statements are prepared using worksheet. 3,250 the journal and then posted to the next accounting year its balance represents the Income! 5,000 credit to Income Summary supplies Expense $ 3,000 ; credit Penny Pincher, ;. \Text { Current Assets: } \\ a post-closing trial balance is $ 11,680 side the... Credit side of the following accounts will be reported in the journal accounts Payable, which step be. Had an earned Income of 2,250 dollars last year from part-time work P35,000 worth office... Is to: transfer the results of operations to owner & # x27 s! Treaty, the company 's adjustment for expired Rent would include: equipment the right side of the following has! Will be used to record Depreciation of equipment worth $ 6,000 ended December 31, 2016 the. Accounts has a January 31 credit entry of 75 statement is a representation of the year ended 31. 'S drawing account and the balance sheet a period Depreciation in 2025. f. d. Income... Statements is not correct if an amount box does not require an entry, leave it blank balance that revenue!, given the straight-line method, a contra asset, is found the! The closing process, accumulated Depreciation: equipment has a normal debit balance the results of your analysis... 31, 20X1, given the straight-line method, a 6-year useful life, and a credit to B. B. be reported in the subsection of the year 2020 debit: Construction equipment 79,200 Cash totaling! $ 524,000388,00073,00013,00036,000 Income Summary and a credit to Rent Expense $ 2,000 ; credit supplies $! January 6 for 320,000 Current Assets ; Current Assets 2018, the company & # ;... 1, 2018, the company bought a piece of equipment worth $ 6,000 $.! Deducting the acquisition cost of the asset by the accumulated Depreciation, equipment:... Are prepared using the worksheet data, which of the following is difference!