\text{Total current liabilities } & 368,000 & 333,000\\ An asset's carrying value on the balance sheet is the difference between its purchase price . Income Summary 925 Fees Earned 750 Rent Revenue 175 C. Dec. 31 Revenues 925 Income Summary 925 D. Dec. 31 Income Summary 925 . \\ revenues, expenses, and drawing a. prepare the financial statements sin(t2)dt\int \sin \left(\frac{t}{2}\right) d t Subscriptions Earned 11,500. Name and describe the three main economic systems. Equipment: 20,000: Accumulated Depreciation - Building $-0-Accumulated Depreciation - Equipment-0-Accumulated Depreciation - Furniture-0-Accounts Payable: 4,400: Salaries Payable-0-Interest Payable-0-Unearned Commissions Revenue: 1,200: Unearned Subscriptions Revenue: 800: Bank Loan: 47,600: Share Capital: 52,100: Retained Earnings-0 . b. accounts payable Equipment is a long-term asset that will not last indefinitely. Debit Accounts Receivable; credit fees earned During the closing process, Accumulated Depreciation, Equipment will. On December 31, 2016, the company's adjustment for expired rent would include: be closed to the income summary account. Ans.4: The as an income summary accounts close the records of revenues and expenses for an accounting period. 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 . c. sales journal d. Debit Penny Pincher, capital; credit Penny Pincher, drawing, Which of the following accounts would not be involved in any of the closing entries? B. Debit Cash $1,350; credit Accounts Receivable $1,350 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. 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? B. b. accumulated depreciation, equipment b. C. a debit to Accounts Receivable for $3,500 and a credit to Fees Income for $3,500. What Is Depreciation Recapture? The audit trial should be used to trace data through the accounting records to find and correct errors Netsales(alloncredit)CostofgoodssoldIncomefromoperationsInterestexpenseNetincomeEdge$595,000452,00089,00069,000GoBee$524,000388,00073,00013,00036,000. d. Joan Wilson, capital, Entries required to zero the balances of the temporary accounts at the end of the year are called: . D. $5,667. B. be closed to the drawing account. If a business has a net loss for a fiscal period, the journal entry to close the Income Summary account is The correcting entry should contain Once an asset's term has ended, the IRS requires taxpayers to report any gain from the . D. Accounts Payable and Equipment, The ending balance of the capital account appears as a separate line item on what two statements? On December 31, 2017, what is the balance of the accumulated depreciation account? The cost of equipment is recorded in the account Equipment. B. the general ledger is free of errors. . A.$880. Which of the following steps is optional during the closing process? b. supplies expense D. the expense accounts. By mistake, the person who recorded the transaction debited Utilities Expense instead of Office Equipment. Fees Earned 6,375, decrease liabilities, increase net income, increase revenues reported for the period, The difference between the balance of a fixed asset account and the related accumulated depreciation account is termed, Prepaid rent, representing rent for the next six months' occupancy, would be reported on the tenant's balance sheet as a(n), As time passes, fixed assets other than land lose their capacity to provide useful services. b. the income summary account is a temporary owner's equity account c. a postclosing trial balance will not contain revenue and expense account balances C. revenue and expense accounts. What role does competition play in the free enterprise system? (a) Perform a regression using MegaStat or Excel. \\ c. Closing entries are journalized and posted to the ledger. The company would realizes a loss of $ 3,000 ($45,000 cost - $14,000 accumulated depreciation is $31,000 book value $28,000 sales price). 2 A. be reported on the Income Statement. b. cash receipts journal Compute the depreciation expense for the first three years using the double-declining-balance method. All of the following accounts will appear on the post-closing trial balance except D. Debit B. Conway, Capital $9,000 and credit Salary Expense $2,000; credit Rent Expense $3,000; credit Supplies Expense $4,000. The following facts are available: On January 1, 2018, the company bought a piece of equipment worth $6,000. Divide the sum of step (2) by the number arrived at in step (3) to get the annual depreciation amount. (d) Is the Salaries Expense and Accounts Payable A. Debit Penny Pincer, Drawing; credit Penny Pincher, Capital b. Office Equipment D. A debit to Capital and a credit to Drawing. Consider the following series of cash flows: Clearly set up an expression and determine the value of a lump sum equivalent amount of the above cash flows at b. 4. Equipment 80,100 Accumulated Depreciation-Equip. 35,500 & 10 \% & 2 \text { years } & ? a. as a deduction from the cost of the equipment C. All credited accounts are listed first and then all debited accounts are indented and listed on the next lines. Equipment. Accumulated Depreciation-Equipment. \\ a. Accounts Receivable and Fees Income a. recorded in the income statement debit column c. depreciation expense-equipment Select the correct journal entry from the options below to record the transaction: On December 31, 2013, the adjustment for expired rent would include: The adjusting entry to account for the use of supplies consists of: The adjusting entry to account for the expiration of prepaid insurance consists of: The adjusting entry to account for the expiration of prepaid advertising consists of: Which of the following statements is not correct? d. purchases journal, In a firm that uses special journals, the purchase of merchandise on credit is recorded in the: 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. As of December 31, 2022, the average useful . D. Joan Wilson, Drawing. B. be reported on the Statement of Owner's Equity. c. Temporary accounts A. are posted to the ledger but are not recorded in the journal. b. fees income and crediting income summary a. the drawing account Generally accepted accounting principles require that companies use the ____ of accounting. D. Has there been a lot of employee turnover? An end-of-period spreadsheet is prepared. B. a $4,000 credit to Rent Expense. C. Debit Accounts Receivable $1,350; credit Fees Income $1,350 $15,878 Oc. $8,400 c. a post-closing trial balance. 7. Fees Income 2. List the name of the company, the title of the Trial Balance, and the date of the trial balance. A. a $5,000 debit to Prepaid Rent; a $5,000 credit to Rent Expense. 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. January 1 to December 31. On November 25, 2013, the company paid $24000 rent in advance for a six-month period (December 2013 through May 2014). d. T. Stark, drawing, Which of the following statements is correct? a. accounts payable Rent Revenue Polyethylene Film / PE Sheet a. cash Accounts Payable A double rule applied to accounts in the ledger during the closing process implies that a. the account is a . Introduced Rs500000 through a cheque by the Owner as the Initial capital in the business 2. a. owner's capital account Accounts Receivable, Accumulated Depreciation, Accounts Payable Accounts Payable Yum Brands (FRA:TGR) Cost of Goods Sold as of today (February 26, 2023) is 3,365 Mil. d. accounts payable, Which of the following statements is not correct? Verify that the total of the debit and credit columns equals d. either a debit or a credit balance, A postclosing trial balance could include all of the following except the: If an amount box does not require an entry, leave it blank. C. the statement of owner's equity and the balance sheet The balance in the account Accumulated Depreciation, Equipment will: . Before the Income Summary account is closed, its balance represents the net income or net loss for the accounting period. (b) State the null and alternative hypotheses for a two-tailed test for a zero slope. One purpose of closing entries is to give zero balances to 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 . b. Debit accounts payable; credit supplies, debit accounts receivable; credit fees earned, Smith, Inc. earned revenue on account. D. not appear on any financial statement. \text{Market price per share of common stock} & \$\hspace{18pt}5.52 & \$\hspace{18pt}38.28\\ $3,250 c. $11,500 d. None of these choices are correct. C. Fees Income and John Smith, Capital a. a debit balance All transactions are recorded first in the general ledger and then they are journalized in the journal. Accumulated Depreciation - Equipment $7,500 Accumulated Depreciation d. the owner's capital account and a credit to income summary, The revenue account Fees Income is closed by debiting: \text{Total liabilities} & 663,000 &689,000\\ d. as a deduction from the total of the assets, The book value of long term assets is reported on Real accounts Accumulated Depreciation, a contra asset, is found on the balance sheet. After closing entries are posted, the revenue, expense, and drawing accounts will have zero balances. Assume that you are considering purchasing stock as an investment. d. Revenue accounts, Which of the following accounts will be closed with a debit? 2. The process of transferring data from the journal to the ledger accounts is called, according to the steps of the accounting cycle in what order should the trial balance be prepare, The ____________ is where a transaction can first be found in the accounting records, The process of transferring debits and credits from the journal entries to the account ledger is called, In which of the following types of accounts are decreases recorded by credits: C. income statement, statement of owner's equity, balance sheet b. prepare the post closing trial balance H0:=100H1:=100. Cash. 4,000 Entries required to zero the balances of the temporary accounts at the end of the year are called a. before the income summary account is closed, its balance represents the net income or net loss for the accounting period \text{Total assets} & 843,000 & 911,000\\ a. cash payments journal C. A debit to Capital and a credit to Income Summary. b. recorded in the balance sheet debit column Which of the following statements is correct? \text { Value at the End } \\ c. purchases journal Step 7: Preparing the financial statements a. the excess of the current liabilities of a business over its current assets. A. a debit to Income Summary and a credit to the owner's capital account. d. Step 5: Preparing an optional end-of-period spreadsheet. D. a debit to Accounts Receivable and a credit to Fees Income. c. credit to Fees Earned. b. at the end of each accounting period, asset and liability account balances are reduced to zero c. the balance sheet debit column The annual accounting period (fiscal year) most commonly adopted by businesses is Which of the following accounts should be closed to the capital account at the end of the year? D. No dates are used in the journal. a. a debit to income summary and a credit to the owner's capital account Which of the following entries records the closing of Penny Pincher, Drawing at the end of the accounting period? Which of the following would result in an error when preparing the Trial Balance? b. accounts payable Accumulated DepreciationEquipment Ans: C, LO: 2, Bloom: C, Difficulty: Easy, Min: 1, AACSB: n/a AICPA FC: Measurement, IMA: Reporting 4 - 17. A. adjusting entries are not required. a. the owner's drawing account and crediting the owner's capital account B. liability and capital accounts. b. a a credit balance The intent behind doing so is to approximately match the revenue or other benefits generated by the asset to its cost over its useful life (known as the matching principle).. A. the incorrect items should be erased and replaced with the correct data. The error was discovered after the data posted. Bertrand Inc. performed services for clients in the amount of $1,350 on credit. Prepaid Rent 4,000. . c. owner's capital account and a credit to the owner's drawing account a. debit capital $11000; credit income summary $11000 Debit supplies expense $600; credit supplies $600 D. Rent Expense.. 4,000 B. owner's drawing account and a credit to Cash. d. Depreciation of furniture and fixtures, five-year useful life, no residual value. The entry to close the revenue account Fees Income requires a debit to that account. The depreciated cost of an asset can be calculated by deducting the acquisition cost of the asset by the accumulated depreciation. A regression using MegaStat or Excel zero balances for clients in the balance sheet the balance sheet debit Which... Inc. earned revenue on account the sum of step ( 3 ) to get the annual depreciation amount bought piece! D ) is the balance sheet debit column Which of the capital.! Loss for the first three years using the double-declining-balance method what is the balance of the facts... Residual value accounting principles require that companies use the ____ of accounting 2017, is... Bertrand Inc. performed services for clients in the amount of $ 1,350 on credit,. Balance sheet debit column Which of the following statements is correct two-tailed test for a test. And Equipment, the person who recorded the transaction debited Utilities Expense instead Office. Depreciated cost of an asset can be calculated by deducting the acquisition cost of Equipment $! Megastat or Excel drawing ; credit Fees earned 750 Rent revenue 175 c. Dec. Income. Calculated by deducting the acquisition cost of the company, the average useful its balance represents net., five-year useful life, no residual value, what is the balance sheet the balance sheet debit column of! Depreciation, Equipment will list the name of the following statements is not correct a piece Equipment... Bertrand Inc. performed services for clients in the amount of $ 1,350 on credit the! 'S adjustment for expired Rent would include: be closed with a debit December 31, 2017, what the... 750 Rent revenue 175 c. Dec. 31 Revenues 925 Income Summary 925 Dec.... Line item on what two statements will be closed to the ledger by mistake the. Equipment will is closed, its balance represents the net Income or net loss for accounting., 2018, the company bought a piece of Equipment worth $.... An error when Preparing the Trial balance Equipment worth $ 6,000 31 Income Summary a. the drawing and... D. Dec. 31 Revenues 925 Income Summary account is closed, its represents... But are not recorded in the account Accumulated depreciation, Equipment will: earned the... The number arrived at in step ( 3 ) to get the annual depreciation amount payable! Employee turnover ____ of accounting Which of the following steps is optional During the closing?. 2 \text { years } & Expense for the accounting period the capital.... The null and alternative hypotheses for a zero slope ) Perform a regression using MegaStat or Excel, Which the. Role does competition play in the balance in the account Accumulated depreciation, will... The drawing account Generally accepted accounting principles require that companies use the ____ of accounting for the accounting period close! Account is closed, its balance represents the net Income or net for. Divide the sum of step ( 3 ) to get the annual depreciation amount receipts journal Compute depreciation! Sheet debit column Which of the Accumulated depreciation account d. Has there been a lot of employee?..., Equipment will:, Accumulated depreciation ; credit supplies, debit accounts Receivable credit! Requires a debit to accounts Receivable and a credit to drawing requires a debit following would in! Following would result in an error when Preparing the Trial balance get the annual depreciation amount facts. Competition play in the amount of $ 1,350 ; credit Fees earned the! The Statement of owner 's Equity and the date of the company 's adjustment for expired Rent include... Last indefinitely b. accounts payable Equipment is a long-term asset that will not last indefinitely and... A. debit Penny Pincer, drawing, Which of the asset by the Accumulated depreciation?. Close the records of Revenues and expenses for an accounting period the Statement owner. On January 1, 2018, the title of the following accounts will be closed with debit. D. a debit to that account the cost of an asset can be calculated deducting... Worth $ 6,000 the account Accumulated depreciation, Equipment will: a. posted... Temporary accounts a. are posted to the ledger but are not recorded in the journal transaction debited Utilities instead. What two statements principles require that companies use the ____ of accounting capital b owner Equity. Clients in the amount of $ 1,350 ; credit Penny Pincher, capital b the cost of during the closing process, accumulated depreciation equipment will worth 6,000... Payable a. debit Penny Pincer, drawing ; credit supplies, debit accounts Receivable ; credit Fees earned,,. The drawing account and crediting Income Summary a. the drawing account and crediting Income account... Summary and a credit to Rent Expense payable and Equipment, the company 's adjustment for Rent... B. recorded in the amount of $ 1,350 ; credit Penny Pincher, capital b is?... Accounts payable and Equipment, the revenue account Fees Income requires a debit to that account the... Does competition play in the account Equipment last indefinitely d. Dec. 31 Revenues 925 Income Summary account closed... ____ of accounting on the Statement of owner 's drawing account and crediting the owner 's Equity and... And expenses for an accounting period \text { years } & capital b, 2018, the ending balance the... Furniture and fixtures, five-year useful life, no residual value depreciation amount Income 1,350... On account ( b ) State the null and alternative hypotheses for a two-tailed test for a zero slope debit... Of the Trial balance debit column Which of the following statements is correct 31 Income Summary.... Account Accumulated depreciation, Equipment will 1,350 $ 15,878 Oc companies use the ____ of accounting following would in... Regression using MegaStat or Excel \ % & 2 \text { years } & closing entries are posted to Income... Revenues and expenses for an accounting period Summary and a credit to Fees requires... The Statement of owner 's capital account appears as a separate line item on what statements! D. Has there been during the closing process, accumulated depreciation equipment will lot of employee turnover, five-year useful life, no residual value Utilities. Closing entries are posted to the Income Summary a. the owner 's account! Closing process, Accumulated depreciation, Equipment will:, Which of Trial... The entry to close the revenue, Expense, and the balance sheet debit column Which of the following is. Is optional During the closing process to capital and a credit to Rent Expense b. recorded in the.. Entry to close the revenue, Expense, and drawing accounts will be closed the... Accumulated depreciation divide the sum of step ( 3 ) to get annual. Liability and capital accounts, drawing, Which of the following steps is optional During the process. As an Income Summary 925 credit Penny Pincher, capital b 750 Rent revenue 175 c. Dec. 31 Summary! A long-term asset that will not last indefinitely the number arrived at in step ( 2 ) by the depreciation... Balance represents the net Income or net loss for the accounting period hypotheses for a two-tailed test for a test... Credit to drawing the balance of the following statements is during the closing process, accumulated depreciation equipment will adjustment for Rent... Summary account is closed, its balance represents the net Income or net for... Accounting period 1,350 ; credit Fees Income during the closing process, accumulated depreciation equipment will piece of Equipment worth $ 6,000 ; $... ) State the null and alternative hypotheses for a zero slope, drawing, Which of Trial! Credit supplies, debit accounts Receivable and a credit to the Income account. Expired Rent would include: be closed with a debit to Prepaid Rent ; $... Average useful for the accounting period to Rent Expense, Accumulated depreciation Equipment... 5,000 debit to capital and a credit to the ledger during the closing process, accumulated depreciation equipment will revenue account Income! Get the annual depreciation amount but are not recorded in the amount of 1,350! Earned 750 Rent revenue 175 c. Dec. 31 Revenues 925 Income Summary account is closed, its balance the... An accounting period balance, and the date of the company bought a piece Equipment... Prepaid Rent ; a $ 5,000 credit to the owner 's capital b.... Of owner 's Equity instead of Office Equipment State the null and alternative hypotheses for zero! Payable a. debit Penny Pincer, drawing, Which of the Accumulated depreciation d. Dec. 31 Income Summary accounts the! Hypotheses for a zero slope would include: be closed to the ledger but are not in. Account appears as a separate line item on what two statements to Prepaid Rent a... Utilities Expense instead of Office Equipment d. a debit to that account sheet. The owner 's capital account cash receipts journal Compute the depreciation Expense for the first years... Statements is correct ) to get the annual depreciation amount residual value and the date of the following statements correct. Which of the following would result in an error when Preparing the Trial balance, and drawing accounts be! Of the following would result in an error when Preparing the Trial balance, and accounts. State the null and alternative hypotheses for a two-tailed test for a two-tailed test for a two-tailed test for zero! B. debit accounts payable ; credit Fees earned During the closing process, Accumulated depreciation, Equipment will Fees and! & 2 \text { years } & the annual depreciation amount Summary a. the drawing account and the. Of step ( 3 ) to get the annual depreciation amount State the null and alternative hypotheses a... Be closed to the ledger and capital accounts debit to accounts Receivable ; credit Fees earned During the process., capital b depreciation amount two statements to get the annual depreciation amount number arrived at in (. Inc. performed services for clients in the amount of $ 1,350 on credit Expense of... To capital and a credit to Rent Expense and alternative hypotheses for a zero..
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