Accumulated Depreciation is a(n): a. expense account. Coreless Stretch Film; Pre-Stretch Film; Hand Roll; Machine Roll; Jumbo Roll; Industrial Plastic Division. D. are recorded in the journal and then posted to the general ledger accounts. b. The annual accounting period (fiscal year) most commonly adopted by businesses is a. cash payments journal \text{Market price per share of common stock} & \$\hspace{18pt}5.52 & \$\hspace{18pt}38.28\\ $6,624 6,862 . A. the drawing account. a. cash payments journal \end{array} d. the worksheet, The balance in the account Accumulated Depreciation, Equipment will: d. the income statement credit column, On a worksheet, a net loss is: The first of the year 2020 Debit: Construction Equipment 79,200 Cash, totaling 79,200 credits. land + assets - accumulated depreciation = 33250 Depreciation on the company's equipment for the year is $11,680. If an owner wanted to know how much money flowed into and out of the company, which financial statement would the owner use? Select the correct journal entry from the options below to record the transaction: b. stockholders' equity account. the chart of accounts c. the balance sheet debit column D. Adjusting entries must be journalized and posted before the closing entries are journalized and posted. How much do customers owe the business? b. the depreciation expense account and a credit to the accumulated depreciation account Preparing Financial Statements and Closing Entries Beneish Corporation has the following account balances at December 31, the end of its fiscal year. B. liability and capital accounts. If a business has a net loss for a fiscal period, the journal entry to close the Income Summary account is A. Ans.4: The as an income summary accounts close the records of revenues and expenses for an accounting period. If Vance's employer withheld 280 dollars from his wages for withholding taxes, how much should Vance get back as a refund on his federal income taxes? b. cash receipts journal The balance in the account Accumulated Depreciation, Equipment will: . c. debit revenue $64000; credit expenses $53000 C. A debit to Capital and a credit to Income Summary. D. Placing the Accounts Payable balance in the Credit column. Briefly explain what you believe to be the nature of each of these liabilities, including how the liability arose and the manner in which it is likely to be discharged. d. The balance of the owner's capital account on the adjusted trial balance will usually be different than that reported on the postclosing trial balance, During the closing process, accumulated depreciation-equipment will: Land, Accumulated Depreciation, Cash c. sales journal Debit supplies expense $600; credit supplies $600 The cost for each year you own the asset becomes a business expense for that year. Of the following steps of the accounting cycle, which step should be completed last? D. T. Stark, Capital, Which of the following accounts would be closed? C. an asset with a debit balance B. a debit to Office Equipment and a credit to Utilities Expense. Example of Depreciation Accounts. \text{Balance sheet:}\\ 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? An explanation is indented and entered on the line underneath the last credit in the entry. Income Summary account and a credit to the owner's drawing account. A. will be overstated. c. sales journal d. as a deduction from the total of the assets, The book value of long term assets is reported on D. No dates are used in the journal. The cost of supplies used is reported on the statement of owner's equity. $122,080. Accounts Receivable, Accumulated Depreciation, Accounts Payable c. The Hollywood Park Companies (horse racing): Outstanding mutuel tickets. C. on the left side of the Cash account and the right side of the Accounts Receivable account. \text{Long-term debt } & - & 309,000\\ 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. c. after the net income amount is added to the balance sheet credit column c. either a debit or a credit balance C. closing entries. He also earned 24.15 dollars in interest from a savings account. Trial balance, adjusted trial balance, post-closing trial balance. a. a debit to income summary and a credit to fees income 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. b. recorded in the balance sheet debit column c Terry James, Drawing A debit to Income Summary and a credit to Capital. The amount of accumulated depreciation for an asset will . e. Unearned fees at August 31, $3,000. Using the straight-line depreciation Debit Supplies Expense Subscriptions Earned 11,500. Based on the following information, determine the amount of equipment on the balance sheet. Your strategy is to invest in companies that have low price-earnings ratios but appear to be in good shape financially. 35,500 & 10 \% & 2 \text { years } & ? &H_0: \mu =100 \\ C. The Income Summary account is used only at the end of an accounting period to help with the closing procedure. B. d. Revenue accounts, Which of the following accounts will be closed with a debit? c. adjust the ledger account balances to provide complete and accurate figures for use on financial statements b. after the net income amount is added to the balance sheet debit column b. reduce the owner's capital account balance to zero so that the account is ready for the next period We need to enter adjustment entries in the transaction. 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: d. must always be adjusted to the calendar year. 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. Netsales(alloncredit)CostofgoodssoldIncomefromoperationsInterestexpenseNetincomeEdge$595,000452,00089,00069,000GoBee$524,000388,00073,00013,00036,000. 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. liabilities and owner's equity - 33250= 11500. c. Income from services \end{aligned} The correcting entry should contain Answer the following questions about the closing process. c. the owner's capital account and crediting fees income 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 . Introduced Rs500000 through a cheque by the Owner as the Initial capital in the business 2. c. There may have been additional withdrawals made during the year reflected in the balance. B. C. prepare the post-closing trial balance. B. assets, liabilities, and owner's equity The entry to close the revenue account Fees Income requires a debit to that account. be closed to the capital account. b. debit Penny Pincher, capital; credit income summary You have narrowed the choice to either Edge Corporation stock or GoBee Company stock and have assembled the following data for the two companies. During the year, Tuscan had the following selected transactions. After the closing entries are posted to the ledger, each expense account will have, Chapter 4: The General Journal and the Genera, Fundamentals of Financial Management, Concise Edition, Jack R. Kapoor, Les R. Dlabay, Melissa Hart, Robert J. Hughes, Carl S Warren, James M Reeve, Jonathan E. Duchac. T during the closing process, revenues are transferred to the credit side of the income summary . The basic journal entry for depreciation is to debit the Depreciation Expense account (which appears in the income statement) and credit the Accumulated Depreciation account (which appears in the balance sheet as a contra account that reduces the amount of fixed assets). a. 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. Establish zero balance in each of the temporary accounts to start the accumulation in the next period. Step 7: Preparing the financial statements 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. Company vehicles. The cost of supplies used represents an operating expense of the business. \\ Ref. \text{Interest expense} & - & 13,000\\ The journal entry to record cash received from clients on account would include a D. may be either overstated or understated. a. before the income summary account is closed, its balance represents the net income or net loss for the accounting period D. T. Stark, Drawing, Identify the accounts below that are ALL classified as temporary accounts. d. the expense accounts, The first two closing entries to the income summary account indicate a debit of $53000 and a credit of $64000. D. the income statement and the balance sheet. a. equipment The equipment was expected to have a useful life of four years, or 20,000 operating hours, and a residual value of 35,000. A debit to Income Summary and a credit to Fees Income. Rent Expense 4,000 d. prepare the financial statements, After the transactions have been posted, the next step in the accounting cycle is to: Office Equipment D. liabilities and owner's equity, The classification and normal balance of the accounts receivable account is: To make them zero we want to decrease the balance or do the opposite. d. not appear on any financial statement, A consecutive 12-month accounting period is called a(n): Accumulated depreciation is the total decrease in the value of an asset on the balance sheet of a business over time. Accounts that report amounts for only one period. B. are recorded in the journal but are not posted to the ledger. A. a $4,000 debit to Prepaid Rent. a. On January 31, it is determined that $600 supplies are remaining. Depreciation Expense Supplies Expense Data needed for year-end adjustments are as follows: a. Unbilled fees at August 31, $9,150. a. cash payments journal A. Which of the following accounts will not be closed at the end of the accounting cycle? Accumulated Depreciation. c. $11,500 c. the accumulated depreciation account and a credit to the income summary account d. journalize and post the adjusting entries, In a firm that uses special journals, a sale of merchandise on credit is recorded in the: During the closing process, Accumulated Depreciation--Equipment will. c. a debit to capital and a credit to income summary Which of the following accounts is not closed? a. In Exercises 212121 through 303030, find the indicated integral. Which of the following statements is not correct? One purpose of closing entries is to: transfer the results of operations to owner's equity. c. closing entries The revenue account Fees Income is closed by debiting. b. adjusting entries Owner capital is where the period's net income or loss is transferred. Determine the useful life of the asset. c. only a balance sheet is required \text{Total stockholders equity} & 261,000 & 222,000\\ IAS 16 defines depreciation as 'the systematic allocation of the depreciable amount of an asset over its useful life'. A. A. the incorrect items should be erased and replaced with the correct data. Equipment. A double rule applied to accounts in the ledger during the closing process implies that a. the account is a . \\ Business Accounting the estimated amount of depreciation on equipment for a period is $3,500, the adjusting entry to record depreciation would be a. debit Depreciation Expense $3,500; credit Accumulated Depreciation $3,500. \text{Inventories} & 202,000 & 199,000\\ d. Step 6: Journalizing and posting adjusting entries, When the end-of-period spreadsheet is complete, the adjustment columns should have. SAP Fico Feb-2020. d. accounts payable, Which of the following statements is not correct? Trial balances are prepared in a certain order. C. the debit account balances equal the credit account balances. 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. c. income summary and crediting the owner's drawing account Credit Supplies. During the year, $6,397 of supplies are purchased. B. d. contra asset account. The equipment is estimated to have a useful . The results of a six-person random sample were as follows: 118, 105, 112, 119, 105, and 111. c. the income summary account is used only at the end of an accounting period to help with the closing procedure Which of the following accounts has a normal credit balance? D. Has there been a lot of employee turnover? ppp-value and the 95 percent confidence interval for the slope shown in the regression results. As a result, Accumulated Depreciation is viewed as a permanent account. Which of the following steps is optional during the closing process? c. cash and a credit to the income summary account C. a debit to Cash and a credit to Income Summary. b. a debit balance A. d. purchases journal, In a firm that uses special journals, the acceptance of a return of merchandise from a credit customer is recorded in the: d. An unadjusted trial balance is prepared. 12,000 & 15 \% & 10 \text { years } & ? Debit cash; credit fees earned A. a debit to Equipment for $100 and a credit to Cash for $100. Over time, the accumulated depreciation balance will continue to increase . 7. On a worksheet, the adjusted balance of the accumulated depreciation account is extended to: On a worksheet, the adjusted balance of the depreciation expense account is extended to: On a worksheet, the adjust balance of the supplies account is extended to: D. a $6,000 debit to Prepaid Rent; a $6,000 credit to Rent Expense. Debit supplies $600; credit cash $600 the adjusting entry to record depreciation of equipment is. \text{Total liabilities} & 663,000 &689,000\\ Close means to make the balance zero. a. January 1 to December 31. A post-closing trial balance is prepared. which of the accounts below would be closed by posting a debit to the account? \text{Total current liabilities } & 368,000 & 333,000\\ D. Joan Wilson, Drawing. Yum Brands (FRA:TGR) Cost of Goods Sold as of today (February 26, 2023) is 3,365 Mil. By mistake, the person who recorded the transaction debited Utilities Expense instead of Office Equipment. $100,000 . Determine the new balance of the ledger account. A business purchases supplies on account. b. Prepaid Rent 4,000. On March 1, 2016, the company paid $6,000 rent in advance for a 12-month period. D. on the left side of the Cash account and the left side of the Accounts Receivable account. 4. 3. 95. 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 . A. Debit Penny Pincer, Drawing; credit Penny Pincher, Capital Instructions c. closing entries are entered directly on the worksheet a. executive agreement e. sanction The equipment has a residual value of $20,000 and has an expected useful life of 8 years. Delivery Equipment, The cost of office supplies to be used in future periods is ordinarily shown on the balance sheet as a(n), What effect will this adjustment have on the accounting records? When charge customers pay cash to apply against their accounts, the amount is recorded C. Post-closing trial balance, adjusted trial balance, trial balance. c. the balance sheet a. when an unadjusted trial balance is prepared d. worksheet, After the worksheet has been completed, the next step in the accounting cycle is to: C. the revenue accounts. Verify that the total of the debit and credit columns equals The $25,000 balance in Equipment is accurate, so no entry is needed in this account. d. either a debit or a credit balance, A postclosing trial balance could include all of the following except the: c. owner's drawing A. completing one T account. Transfer the expense account balances to the . Accumulated Depreciation: $9,800. c. the owner's capital account A. on the left side of the Cash account and the right side of the Fees Income account. 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).. be closed to the income summary account. On November 25, 2016, the company paid $24,000 rent in advance for a six-month period (December 2016 through May 2017). \end{aligned} The balance of the accumulated depreciation account on the adjusted trial balance of the end-of-period spreadsheet would be reported on which of the following financial statements? List the name of the company, the title of the Trial Balance, and the date of the trial balance. \text{$\quad\quad$\$5 par (20,000 shares)} && 100,000\\ B. a liability with a debit balance The equipment's cost was $600,000 and is expected to last for 10 years at which time it will be scrapped for no salvage value. This expense is tax-deductible, meaning it reduces your business's taxable income for the year. b. \text{Common stock, \$1 par (150,000 shares)} & 150,000\\ c. purchases journal The cost of supplies used is reported on the statement of owner's equity What is the purpose of the owner capital account in the closing process? When pulling the owner's capital balance from the end-of-period spreadsheet into the statement of owner's equity, why is it also important to check the detail in the owner's capital account in the general ledger? 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. d. expense and capital accounts, After the closing entries are posted to the ledger, each expense account will have: revenues, expenses, and drawing c. D. the company has earned a net income. If an amount box does not require an entry, leave it blank. All of the following accounts will appear on the post-closing trial balance except B. . B. the ledger \text{Total assets} &985,000 & 930,000\\ Account Debit Balance Credit Balance C. Debit Supplies; Credit Accounts Payable c. balance sheet debit column not be closed. Fixtures . - Reported net income of $\$100,000$. Describe why each statement is incorrect. d. Adjusting entries must be journalized and posted before the closing entries are journalized and posted, Which of the following statements is not correct? a. cash receipts journal b. at the end of each accounting period, asset and liability account balances are reduced to zero A. journalize the closing entries. b. the owner's drawing account and a credit to the owner's capital account \text{Current assets:}\\ C)be closed to the drawing account. C. Income Summary and crediting the owner's drawing account. Fees Earned $1,000 c. need not be entered in the journal or the ledger 1. a. before the net income amount is added to the balance sheet debit column Information in the financial statements provides answers to many questions, including: . c. be closed to the drawing account Enter the date of the transaction in the ledger account. 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. b. debit income summary $11000, credit capital $11000 a. income summary On the same date, SloMo owed the following creditors: Simpson Supply Company, $12,000; Allen Office Equipment, $9,500. hich of the following is the last step during the posting process? AmountofInvestment$8,00012,00015,50035,500Rate20%15%12%10%Time15years10years5years2yearsValueattheEndofthePeriod????. Given the choices below, which one depicts the trial balances in the correct order in which they would be prepared? Example. B. income statement, balance sheet, statement of owner's equity b. A. a $5,000 debit to Prepaid Rent; a $5,000 credit to Rent Expense. In which of the following steps of the accounting cycle will the owner capital account be used? Unearned Subscriptions 11,500 Cash b. sales journal 6-6 2. List the accounts from the ledger and enter their debit or credit balance in the debit or credit column of the Trial Balance. Amount at which the asset is recognised after deducting any accumulated depreciation and accumulated impairment losses. The straight line calculation steps are: Determine the cost of the asset. c. rent expense B. During the closing process, Accumulated Depreciation, Equipment will be closed to the income summary account. sin(t2)dt\int \sin \left(\frac{t}{2}\right) d t B)not be closed. JACKSONVILLE, Fla., Feb. 28, 2023 /PRNewswire/ Black Knight, Inc. (), a leading provider of software, data and analytics solutions to the mortgage and consumer loan, real estate and capital markets verticals, today announced unaudited financial results for the fourth quarter and year ended December 31, 2022, as compared to the prior year periods. owner's equity and assets, debit supplies expense $400; Credit supplies $400, etermine the adjusting journal entry for the following scenario: $1,000 supplies are purchased January 1. Calculate the retained earnings balance at December $31, 2019$. A. \end{array} & \text { Rate } & \text { Time } & \begin{array}{c} C. a $24,000 debit to Rent Expense. D. expense and capital accounts. D. a $4,000 credit to Prepaid Rent. D. Joan Wilson, Capital. c. Do you agree that monopolies weaken a market economy? a. 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 column of the ledger account. Accounts Payable b. the income summary and a credit to cash Which of the following entries records the closing of Penny Pincher, Drawing at the end of the accounting period? $9,732 Od. On December 31, 2016, the company's adjustment for expired rent would include: B. c. a post-closing trial balance. Currentassets:CashShort-terminvestmentsCurrentreceivables,netInventoriesPrepaidexpensesTotalcurrentassetsTotalassetsTotalcurrentliabilitiesTotalliabilitiesPreferredstock,5%,$125parCommonstock,$1par(150,000shares)$5par(20,000shares)TotalstockholdersequityMarketpricepershareofcommonstockEdge$21,0004,000186,000212,00017,000440,000985,000368,000663,000150,000322,000$5.52GoBee$35,00018,000167,000181,0009,000410,000930,000333,000689,00025,000100,000241,000$38.28. \text{Total stockholders equity} & 322,000 & 241,000\\ Based on this information, (a) what adjusting journal entries should have been made at December 31, and (b) what is the correct net income? Choose the correct journal entry B. Debit to Supplies; Credit Accounts Receivable H0:=100H1:=100. b. fiscal year D. a debit to Accounts Receivable and a credit to Fees Income. a. Service Revenue Accumulated Depreciation-Equipment 367.00 Postclosing Trial Balance. Depreciation accounts for an expense on an asset over time, it has nothing to do with the decrease in value of an asset. Closing entries are journalized and posted to the ledger. c. revenue and expense accounts 1 net income to retained earnings. The Income Summary account is a temporary owner's equity account. Accounts Payable c. sales journal Can we draw the conclusion that the mean is different from 100 at the.05 level of significance? \text{Net income} &69,000 & 36,000\\ When recording a business transaction into the journal, certain steps are followed. NGL Energy Partners LP (NYSE:NGL) ("NGL," "our," "we," or the "Partnership") today reported its third quarter Fiscal 2023 financial results b. is not characterized by any of these answer choices. year 5 if iii = 7 percent. b. the adjusting entries do not need to be journalized. a. the drawing account Has a zero balance after the closing process and remains with a zero balance until after the closing procedure for the next period. C. 9. C. Owner's Drawing, Depreciation Expense, Income Summary . A. corrections of errors. The first entry closes revenue accounts to the Income Summary account. C. Supplies Expense . \text { Investment } 'Depreciable amount' is the cost of an asset, cost less residual value, or . . slope significantly different from zero? When during the accounting cycle does the closing process occur? Debit supplies; Credit accounts payable Adjusted trial balance, trial balance, post-closing trial balance. d. the balance sheet credit column, On a worksheet, the adjusted balance of the supplies expense account is extended to: d. T. Stark, Capital, Which of the following has a normal credit balance? c. supplies expense transactions are posted to the ledger d. Transactions are posted to the ledger. B. a debit to Equipment for $500, a credit to Cash for $100, and a credit to Accounts Payable for $400. 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? We need to do the closing entries to make them match and zero out the temporary accounts. c. depreciation expense-equipment