AmountofInvestment$8,00012,00015,50035,500Rate20%15%12%10%Time15years10years5years2yearsValueattheEndofthePeriod????. a. The third closing entry would be: The first step in the closing process is to close Real accounts A. an asset with a credit balance Preparing Financial Statements and Closing Entries Beneish Corporation has the following account balances at December 31, the end of its fiscal year. Accumulated Depreciation is a(n): a. expense account. At the time of purchase, the equipment was estimated to have a useful life of six years and a salvage value of $880. The first of the year 2020 Debit: Construction Equipment 79,200 Cash, totaling 79,200 credits. ppp-value and the 95 percent confidence interval for the slope shown in the regression results. 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. prepare the financial statements Capital assets might include rental properties, equipment, furniture or other assets. e. P35,000 worth of office supplies were used. C. All credited accounts are listed first and then all debited accounts are indented and listed on the next lines. 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: a. income statement debit 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. The owner's drawing account is closed by debiting Otherwise, an unusually large amount of accumulated depreciation will build up on . After the worksheet has been completed, the next step in the accounting cycle is to c. the excess of the current assets of a business over its current liabilities. Closing the books. \text{Total stockholders equity} & 261,000 & 222,000\\ chandan. c. Step 3: Preparing an unadjusted trial balance a. income summary account and a credit to the owner's drawing account d. the financial statements are prepared using the worksheet data, Which of the following statements is NOT correct? If the prepaid expenses are not adjusted, assets on the balance sheet b. fees income d. An unadjusted trial balance is prepared. B. will be understated. c. The Hollywood Park Companies (horse racing): Outstanding mutuel tickets. a. closing entries. Given the choices below, which one depicts the trial balances in the correct order in which they would be prepared? Organic revenues increased $16.6 million, or 9 . b. Miscellaneous Expense \\ Assume that you have analyzed all other factors and that your decision depends on the results of your ratio analysis. Paid Rs 10000 as salary to the employees 4. B. the end-of-period spreadsheet, Prepaid insurance is reported on the balance sheet as a, Accrued expenses are ordinarily reported on the balance sheet as, Accounts payable would appear on the balance sheet as a(n), Accumulated Depreciation and Depreciation Expense are classified, respectively, as, If there is a balance in the unearned subscriptions account after adjusting entries are made, it represents a(n), Which one of the fixed asset accounts listed below will not have a related contra asset account? 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? b. the income summary account is a temporary owner's equity account Accounts Receivable d. advertising expense, The first step in the closing process is to close: d. Balance sheet credit column, On a worksheet, the adjusted balance of the revenue account fees income would be extended to: Which of the following entries records the closing of Penny Pincher, Drawing at the end of the accounting period? B. are recorded in the journal but are not posted to the ledger. a. Accounts Receivable f. Capital Stock . . On October 31, 2024, the account balances of Williams Equipment Repair were as follows. XYZ Company purchased equipment on January 1, 2015 for $100,000. c. to update the capital account. B. 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. A. a debit to Income Summary and a credit to the owner's capital account. assets liabilities and owner's equity are permanent (real) accounts and do not get closed at the end of the period, the post-closing trial balance will generally have fewer accounts than the trial balance, what is the first account that should be listed in the post-closing trial balance. Which of the following accounts should be closed to the capital account at the end of the year? A. a. cash payments journal financial statements are prepared. c. Depreciation of office equipment, five-year useful life, 10% estimated residual value per set. Accumulated depreciation is the total decrease in the value of an asset on the balance sheet of a business over time. c. balance sheet debit column C. the debit account balances equal the credit account balances. b. to close all real accounts. Introduced Rs500000 through a cheque by the Owner as the Initial capital in the business 2. Debit fees earned; credit cash b. stockholders' equity account. Equipment: 35,100. b. How much do customers owe the business? The annual accounting period adopted by a business. 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? Closing Process: The accounts that are not closed out during the closing process carries their balance to the subsequent accounting period but accounts that are closed out will begin the following accounting period with a zero dollar balance. Example. A. Debit Salary Expense $2,000; debit Rent Expense $3,000; debit Supplies Expense $4,000 and credit Income Summary $9,000. 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: adjusting entries are journalized and posted to the ledger d. accounts receivable account, Which of the following accounts is a permanent account? Immutep successfully scaled-up the manufacturing process for efti during the half year, with the completion of its first 2,000L manufacturing run by the Company's manufacturing partner, WuXi Biologics. D. 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. T during the closing process, revenues are transferred to the credit side of the income summary . A. 'Depreciable amount' is the cost of an asset, cost less residual value, or . B. Debit Penny Pincher, Capital; credit Income Summary a. are posted to the ledger but are not recorded in the journal B. owner's drawing account and a credit to Cash. C. owner's capital account and a credit to the owner's drawing account. C. Debit Accounts Receivable $1,350; credit Fees Income $1,350 For example, at December 31, 20X2, the net book value of the truck is $50,000, consisting of $150,000 cost less $100,000 of accumulated depreciation. Income statement credit column Identify the statement below that is CORRECT regarding the journalizing process. C. a correcting entry should be journalized and posted. An accounting system that involves recording the effects of each transaction as debits and credits is Subscriptions Earned 11,500. When recording a business transaction into the journal, certain steps are followed. Credit Cash, all of the information from the journal was correctly transferred to the ledger, Proof that the dollar amount of the debits equals the dollar amount of the credits in the ledger means, Smith Inc. c. a debit to capital and a credit to income summary Unearned Revenue 6,375 \text{Net sales (all on credit)} & \$595,000 & \$524,000\\ a. if the postclosing trial balance does not balane, there are errors in the accounting records ($100,000 - $20,000) / 8 = $10,000 in depreciation expense per year. The equipment has a residual value of $20,000 and has an expected useful life of 8 years. Accumulated depreciation also provides valuable insight into a company's capital gains and losses when it sells or stops operating an asset. \text{$\quad$Inventories} & 212,000 & 181,000\\ b. accumulated depreciation, equipment . Accounts Payable 4,690. The cost of supplies used represents an operating expense of the business. Compute the depreciation expense for the first three years using the double-declining-balance method. The first entry closes revenue accounts to the Income Summary account. c. rent expense 6-6 2. C. a debit to Fees Income and a credit to Accounts Receivable. Land c. debit revenue $64000; credit expenses $53000 During the closing process, what amount was transferred from the income summary account to the Retained Earnings account in the third closing entry (i.e., after revenue and expense accounts have been closed to Income Summary The revenue account Fees Income is closed by debiting. However, it is also reduced each year by the ever-growing accumulated depreciation. d. the worksheet, The balance in the account Accumulated Depreciation, Equipment will: Depreciation accounts for an expense on an asset over time, it has nothing to do with the decrease in value of an asset. d. Depreciation of equipment during year, $3,300. which of the following accounts will be debited in the closing entry at the end of the year, beginning capital + net income - withdrawals = ending capital, assets liability and owner's equity account flow into. D. Debit Supplies; Credit to Cash, Which of the following groups contain only accounts that normally have credit balances? c. a debit to cash and a credit to income summary B. a debit to Equipment for $500, a credit to Cash for $100, and a credit to Accounts Payable for $400. a. before the income summary account is closed, its balance represents the net income or net loss for the accounting period b. accounts payable The following facts are available: On January 1, 2018, the company bought a piece of equipment worth $6,000. d. 5, After the closing entries are posted to the ledger, each revenue account will have: c. need not be entered in the journal or the ledger On December 31, 2017, what is the balance of the accumulated depreciation account? \text{$\quad\quad$\$5 par (20,000 shares)} && 100,000\\ Describe why each statement is incorrect. A. d. T. Stark, drawing, Which of the following statements is correct? Furniture. \text{Balance sheet:}\\ d. 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