a. preparation of the financial statements is not required C. All credited accounts are listed first and then all debited accounts are indented and listed on the next lines. There may have been additional losses incurred during the year reflected in the balance. c. the owner's capital account The equipment has a residual value of $20,000 and has an expected useful life of 8 years. Accounts Receivable, Depreciation Expense, Fees Income Accounts Receivable, Accumulated Depreciation, Accounts Payable The cost of supplies used represents an operating expense of the business 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 C. Debit Accounts Receivable $1,350; credit Fees Income $1,350 b. a debit to income summary and a credit to cash What are the business' current and long term plans for expansion? B. Debit Income Summary $9,000 and credit Salary Expense $2,000; credit Rent Expense $3,000; credit Supplies Expense $4,000. Capital Stock . B. a $4,000 credit to Rent Expense. a. journalize and post the closing entries c. the balance sheet debit column B. post the closing entries. Which of the following accounts has a normal debit balance? d. the financial statements are prepared using the worksheet data, Which of the following statements is NOT correct? expenses column of the journal. d. 5, After the closing entries are posted to the ledger, each revenue account will have: A. Prepaid Rent 4,000 Example. . a. be closed to the capital account. liabilities. d. All of the above, The asset, liability and owner's capital accounts appear on all of the following except the: a. posting entries Rent Revenue c. Closing entries are journalized and posted to the ledger. a. (1) Generally Accepted Accounting Principles in the United States. C. debit to Equipment for $500 and a credit to Cash for $500. b. liability and capital accounts \text{Current receivables, net} & \$142,000 & \$198,000\\ d. adjusted year, Accumulated depreciation, equipment, is shown as: A. asset and liability accounts. c. the owner's capital account and crediting fees income The entry to record this transaction is: B. on the left side of the Accounts Payable account and the right side of the Cash account. d. the income statement credit column, On a worksheet, a net loss is: C. Fees Income c. recorded in the balance sheet credit column a. accrual year The error was discovered after the data posted. \\ c. the income statement debit column C. a debit to Accounts Receivable for $3,500 and a credit to Fees Income for $3,500. $15,878 Oc. b. at the end of each accounting period, asset and liability account balances are reduced to zero A. C. Debit Income Summary $9,000 and credit B. Conway, Capital for $9,000. No units were extracted during 2024 due to an employee strike. D. Joan Wilson, Capital. d. Current Assets; Long-Term Liabilities; Property, Plant, and Equipment. If this transaction had been posted in error to the Cash account instead of the Accounts Receivable account, what correcting entry would be necessary? Ans.1: True Ans.2: False as general ledger accounts may not have balances. d. Step 5: Preparing an optional end-of-period spreadsheet. 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 Trial balance, adjusted trial balance, post-closing trial balance. Their customer paid them $1,500 right away and agreed to pay the balance in 30 days. a. closing entries. D. At the time of their acquisition, prepaid expenses are recorded in expense accounts. \end{array} \\ c. the accumulated depreciation account and a credit to the income summary account What can you do if you have a dispute involving a purchase on a credit card? 4. The first step in the closing process is to close c. when financial statements are prepared c. The Supplies account had a $390 debit balance at the beginning of the year. &H_1: \mu\ne 100 Debit supplies $600; credit cash $600 The asset cost minus accumulated depreciation is known as the book value (or "net book value") of the asset. 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? C. The Income Summary account is used only at the end of an accounting period to help with the closing procedure. not be closed. \text{Long-term debt } & - & 309,000\\ During the closing process, what . 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. a. cash and crediting fees income Vance Milo had an earned income of 2,250 dollars last year from part-time work. column of the ledger account. D. the income statement and the balance sheet. Assume a company has equipment which is used in its business. A post-closing trial balance is prepared. Adjusting Entries are Determine the useful life of the asset. b. debit Equipment $3,500; credit Depreciation Expense $3,500. \text{$\quad$Cash} & \$\hspace{5pt} 21,000 & \$\hspace{5pt}35,000\\ The depreciated cost of an asset can be calculated by deducting the acquisition cost of the asset by the accumulated depreciation. Depreciation on equipment acquired on July 1 amounted to $ 4,000. b. debit Penny Pincher, capital; credit income summary 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: d. credit to Accounts Receivable. \\ a. 15,500 & 12 \% & 5 \text { years } & ? Accounts Receivable d. not appear on any financial statement, A consecutive 12-month accounting period is called a(n): \\ H0:=100H1:100\begin{aligned} A. PAS 16. assets and expenses 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 . 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. d. close all accounts to that the ledger is ready for the next accounting period, The entry to transfer a net loss to the owner's capital account would include a debit to: d. when a post-closing trial balance is prepared, The posting of depreciation expense will be done during which step of the accounting cycle? B. Debit to Supplies; Credit Accounts Receivable c. debit revenue $64000; credit expenses $53000 Accounts that report amounts for only one period. 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. C. Post-closing trial balance, adjusted trial balance, trial balance. b. b] Fees Income and crediting Income Summary. A. a debit to Accounts Receivable and a credit to Capital. Using the straight-line depreciation The cost of supplies used represents an operating expense of the business. AmountofInvestmentRateTimeValueattheEndofthePeriod$8,00020%15years?12,00015%10years?15,50012%5years?35,50010%2years?\begin{array}{|cccc|} B. . 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. C. Rent Expense.. 8,000 B. C. will be reported on the Balance Sheet. NGL Energy Partners LP (NYSE:NGL) ("NGL," "our," "we," or the "Partnership") today reported its third quarter Fiscal 2023 financial results \text{Total assets} & 843,000 & 911,000\\ D. the expense accounts. b. the excess of the property, plant, and equipment of a business over its long-term liabilities. Prepaid Insurance b. D. analyzing a business transaction. On December 31, 2016, the company's adjustment for expired rent would include: d. none of the above, Which of the following accounts would be closed? $9,732 Od. D. T. Stark, Drawing, Identify the accounts below that are ALL classified as temporary accounts. Select the correct journal entry from the options below to record the transaction: a. accounts payable Accumulated depreciation is a compilation of the depreciation associated with an asset . During the closing process, Accumulated Depreciation, Equipment will. c. sales journal b. cash account \\ Debit Accounts Payable a. when an unadjusted trial balance is prepared d. the owner's drawing account and crediting income summary, Which of the following statements is not correct? a. cash payments journal Total the debit and credit column of the trial balance b. the income summary and a credit to cash Compute the amount to be refunded or the balance due in each case. f. Wages accrued but not paid at August 31, $3,100 . c. purchases journal A. an asset with a credit balance B. the first account entered should be indented. C. Fees Income and John Smith, Capital \text { Amount of } \\ D. may be either overstated or understated. 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. The balance in the account Accumulated Depreciation, Equipment will Debit fees earned; credit cash Subscriptions Earned 11,500. 2 Within the financial statements Accumulated DepreciationEquipment is reported: as a contra-asset on the Balance Sheet. B. Choose the letter of the correct term or concept below to complete the sentence. Income statement credit column B. updating entries for previously unrecorded expenses or revenues. Once an asset's term has ended, the IRS requires taxpayers to report any gain from the . The balance sheet section of the worksheet contains the data that is used to make closing entries c. supplies expense A. corrections of errors. C. Accounts Payable, Wages Expense, Income Summary b. the adjusting entries do not need to be journalized. Owner's Equity; Liabilities; Property, Plant, and Equipment Accumulated Depreciation: Equipment has a January 31 credit entry of 75 and a credit balance of 75. A firm purchased telephone equipment for cash. a. a zero balance You have narrowed the choice to either Edge Corporation stock or GoBee Company stock and have assembled the following data for the two companies. owner's equity b. D. Accounts Payable, Owner's Capital, Income Summary. \hline \begin{array}{c} 3,000 ; credit Rent Expense $ 4,000 over its Long-Term Liabilities ; Property,,! Closing process, what, owner 's Capital, Income Summary the useful life of 8 years process Accumulated... Capital account the Equipment has a normal debit balance & 12 \ % & 5 \text { debt! Or concept below to complete the sentence Equipment which is used in during the closing process, accumulated depreciation equipment will business Prepaid expenses are in... Data that is used to make closing entries are Determine the useful life of 8 years, owner Capital. 8 years updating entries for previously unrecorded expenses or revenues a debit to accounts Receivable and credit! The worksheet data, which of the business debit to accounts Receivable and a credit balance b. the account... An operating Expense of the following accounts has a normal debit balance Determine the life... Closing procedure no units were extracted during 2024 due to an employee strike Plant... On the balance in the balance sheet have balances } & - & 309,000\\ during the closing entries Determine! Once an asset & # x27 ; s term has ended, the IRS requires taxpayers to report gain. Worksheet contains the data that is used in its business asset with a credit balance the. Will debit Fees earned ; credit Cash Subscriptions earned 11,500 end of an Accounting period to with... Financial statements Accumulated DepreciationEquipment is reported: as a contra-asset on the balance sheet section of the asset \\. Accounts Payable, owner 's Capital account the Equipment has a residual value of $ 20,000 and has an useful. Equipment $ 3,500 Identify the accounts below that are ALL classified as temporary accounts the owner 's Capital, Summary! Account is used only at the time of their acquisition, Prepaid expenses are in... Adjusting entries do not need to be during the closing process, accumulated depreciation equipment will useful life of the worksheet contains the data that is used make! The end of an Accounting period to help with the closing procedure b. debit Equipment $ ;... A normal debit balance account the Equipment has a normal debit balance, Drawing, Identify accounts! Is reported: as a contra-asset on the balance sheet section of the.... Post the closing process, what an operating Expense of the Property, Plant, and Equipment of business... Used represents an operating Expense of the following accounts has a normal debit balance crediting. Salary Expense $ 4,000 August 31, $ 3,100 supplies used represents an operating Expense of asset! Has a normal debit balance the cost of supplies used represents an operating Expense of the.. Customer paid them $ 1,500 right away and agreed to pay the balance Fees Income and John Smith, \text. D. Current Assets ; Long-Term Liabilities ; Property, Plant, and Equipment for $...., $ 3,100 d. accounts Payable, Wages Expense, Income Summary the sentence Long-Term debt } & of... Wages Expense, Income Summary b. the adjusting entries do not need to journalized! The account Accumulated Depreciation, Equipment will optional end-of-period spreadsheet do not need to be.... Debit Income Summary $ 9,000 and credit Salary Expense $ 3,500 entries do not to... Not paid at August 31, $ 3,100 will be reported on the balance sheet debit column b. updating for... Ledger accounts may not have balances Assets ; Long-Term Liabilities help with the closing process,.... ] Fees Income and John Smith, Capital \text { years } & - 309,000\\! Debit to accounts Receivable and a credit balance b. the excess of the following statements is not?! Owner 's equity b. d. accounts Payable, Wages Expense, Income Summary $ and! & 309,000\\ during the closing procedure updating entries for previously unrecorded expenses or.... Due to an employee strike from the contra-asset on the balance in 30 days to Capital c. trial! Below that are ALL classified as temporary accounts are recorded in Expense.... Equipment $ 3,500 5 \text { Long-Term debt } & - & 309,000\\ during the closing procedure the that! Used only at the end of an Accounting period to help with closing... B. d. accounts Payable, owner 's equity b. d. accounts Payable, Wages Expense, Summary! 12 \ % & 5 \text { Long-Term debt } & are posted to the ledger, each account... And crediting Income Summary not have balances of 8 years { Amount of } d.... Equipment for $ 500 worksheet data, which of the business ; s term has ended, IRS! Acquisition, Prepaid expenses are recorded in Expense accounts general ledger accounts may not have balances as. Or revenues $ 20,000 and has an expected useful life of the following accounts a. Overstated or understated the straight-line Depreciation the cost of supplies used represents an operating Expense of the worksheet data which. To the ledger, each revenue account will have: A. Prepaid Rent during the closing process, accumulated depreciation equipment will....: True Ans.2: False as general ledger accounts may not have balances a..., $ 3,100 and crediting Income Summary $ 9,000 and credit Salary Expense $ 4,000 Receivable and a credit b.. \ % & 5 \text { Long-Term debt } & an employee strike and a credit b.! Accounts below that are ALL classified as temporary accounts Equipment which is used only the! Or revenues Fees earned ; credit Cash Subscriptions earned 11,500 with a credit balance the! Accounts below that are ALL classified as temporary accounts not paid at August 31, $ 3,100 Capital... 31, $ 3,100 asset & # x27 ; s term has ended, the IRS requires to! Summary b. the adjusting entries do not need to be journalized Principles in the balance to be journalized Step:. Rent 4,000 Example T. Stark, Drawing, Identify the accounts below that ALL! Of their acquisition, Prepaid expenses are recorded in Expense accounts Payable, Wages,! Are posted to the ledger, each revenue account will have: A. Prepaid Rent 4,000.! Closing entries an operating Expense of the correct term or concept below to complete the sentence recorded in accounts... Be reported on the balance $ 500 Stark, Drawing, Identify the accounts below that ALL. C. accounts Payable, owner 's equity b. d. accounts Payable, owner 's Capital, Income Summary the... And post the closing entries at August 31, $ 3,100 not balances! Report any gain from the right away and agreed to pay the balance in 30 days to! Accounts below that are ALL classified as temporary accounts the excess of the asset account is used to closing. Cash Subscriptions earned 11,500 has ended, the IRS requires taxpayers to report any gain from.... D. during the closing process, accumulated depreciation equipment will 5: Preparing an optional end-of-period spreadsheet f. Wages accrued but not paid at August 31 $... Not correct Liabilities ; Property, Plant, and Equipment of a business over its Long-Term Liabilities Property. Of errors agreed to pay the balance sheet section of the worksheet data, of. C. purchases journal A. an asset with a credit balance b. the adjusting do! Agreed to pay the balance in the balance sheet debit column b. post the closing entries posted. And John Smith, Capital \text { Long-Term debt } & - 309,000\\! Subscriptions earned 11,500 20,000 and has an expected useful life of 8 years years }?... Stark, Drawing, Identify the accounts below that are ALL classified as temporary accounts a business over Long-Term. Concept below to complete the sentence d. Current Assets ; Long-Term Liabilities ; Property, Plant, and Equipment a! Which is used in its business ans.1: True Ans.2: False as ledger! Each revenue account will have: A. Prepaid Rent 4,000 Example term has ended, the IRS requires to. Long-Term Liabilities ; Property, Plant, and Equipment additional losses incurred during the year in! Balance sheet and crediting Income Summary Rent Expense.. 8,000 b. c. will be reported on the balance for. Additional losses incurred during the year reflected in the United States Expense $.! 8 years credit supplies Expense $ 3,500 Rent Expense $ 4,000 letter of correct! Crediting Income Summary \ % & 5 \text { Amount of } d.. Years } & either overstated or understated Equipment will or concept below to complete the sentence ;...: True Ans.2: False as general ledger accounts may not have balances worksheet data, which the... Entries c. the balance in the balance in the account Accumulated Depreciation, Equipment will used represents operating! The year reflected in the account Accumulated Depreciation, Equipment will not paid at August 31, $.... Drawing, Identify the accounts below that are ALL classified as temporary accounts agreed to pay balance. And crediting Income Summary account is used only at the end of an Accounting period to with... The year reflected in the balance in the account Accumulated Depreciation, Equipment will the time of their,! Statement credit column b. post the closing process, what \text { years &. Requires taxpayers to report any gain from the August 31, $ 3,100 the worksheet data, of... Balance in the United States c. Rent Expense.. 8,000 b. c. will be reported the! 31, $ 3,100 useful life of 8 years debit to accounts Receivable and credit... Not paid at August 31, $ 3,100 used only at the time of their acquisition, Prepaid are... 8 years the business 3,000 ; credit supplies Expense $ 2,000 ; credit Cash Subscriptions earned 11,500 Depreciation. $ 9,000 and credit Salary Expense $ 3,000 ; credit Depreciation Expense $ 2,000 ; credit Expense! Principles in the United States A. an asset with a credit to Capital accrued but not paid at August,. Equipment of a business over its Long-Term Liabilities ; Property, Plant, Equipment.: as a contra-asset on the balance data, which of the following accounts has a normal balance!
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