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 . A. posting entries. g. isolationism C. Debit Income Summary $9,000 and credit B. Conway, Capital for $9,000. Income statement credit column c. Adjusting entries are journalized and posted to the ledger. c. prepare the post closing trial balance 12,000 & 15 \% & 10 \text { years } & ? D. Has there been a lot of employee turnover? d. the financial statements are prepared using the worksheet data, Which of the following statements is NOT correct? A debit to Income Summary and a credit to Fees Income. d. a debit to capital and a credit to drawing, Which of the following entries records the closing of Penny Pincher, Drawing at the end of the accounting period? For example, if a company purchased a piece of printing equipment for $100,000 and the accumulated depreciation is $35,000, then the net book value of the printing equipment is $65,000. Debit supplies $600; credit cash $600 Also, estimate the p-value. a. The Balance Sheet heading includes each of the following except: Choose the option below that reflects the correct order in which to prepare the three financial statements, If a business receives $5,000 on account from clients who owed money for services previously billed, identify the effect on the accounting equation. c. Only the balances of accounts that are affected by adjustments must be recalculated before they are recorded in the adjusted trial balance section of the worksheet d. journalize and post the adjusting entries, In a firm that uses special journals, a sale of merchandise on credit is recorded in the: c. after the net income amount is added to the balance sheet credit column which of the accounts below would be closed by posting a debit to the account? Question 1: For the following transactions, analyze the accounting transactions using the accounting equation framework 1. 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. 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 To account for this decrease in usefulness, the cost of fixed assets is systematically allocated to expense through a process called, The unexpired insurance at the end of the fiscal period represents, An end-of-period spreadsheet includes columns for, is used to summarize account balances and adjustments for the financial statements, How will the following adjusting journal entry affect the accounting equation? \text{Long-term debt } & - & 309,000\\ c. a contra asset on the balance sheet Debit Credit Cash $ 4, Accounts receivable 6, Equipment 78, Accumulated depreciation $ 14, Notes payable 10, Common stock 43, Retained earnings 20, Dividends 8, Service fees earned 71, Rent . c. Accumulated depreciation-equipment is presented in the liabilities section of a balance sheet D. may be either overstated or understated. B. not be closed. The balance sheet section of the worksheet contains the data that is used to make closing entries A. are posted to the ledger but are not recorded in the journal. 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. Land Selected income statement data for the current year: EdgeGoBeeNetsales(alloncredit)$595,000$524,000Costofgoodssold452,000388,000Incomefromoperations89,00073,000Interestexpense13,000Netincome69,00036,000\begin{array}{lrr} D. either a debit or a credit balance. assets and expenses D. Joan Wilson, Capital. C. Fees Income T during the closing process, revenues are transferred to the credit side of the income summary . a. There may have been additional losses incurred during the year reflected in the balance. d. Cash. c. fees income Both depreciation and accumulated depreciation refer to the "wearing out" of a company's assets. c. supplies expense B. assets, liabilities, and owner's equity A. only two accounts will be used to record the transaction. c. Assets; Current Assets; Long-Term Liabilities A. Prepaid Rent 4,000 \hline \text{Preferred stock, 5\\\%, \$125 par} && 25,000\\ Amount at which the asset is recognised after deducting any accumulated depreciation and accumulated impairment losses. a. preparation of the financial statements is not required The following are reasons to close the accounts at the end of the year except On the same date, SloMo owed the following creditors: Simpson Supply Company, $12,000; Allen Office Equipment, $9,500. b. after the net income amount is added to the balance sheet debit column c. owner's capital account and a credit to the owner's drawing account Oa. Which of the following accounts will be reported in the subsection of the balance sheet called Current Assets? sin(t2)dt\int \sin \left(\frac{t}{2}\right) d t the journal The journal entry to record cash received from clients on account would include a A. Debit to Cash; Credit Supplies a. posting entries \text{Total assets} & 843,000 & 911,000\\ 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). TaxableAmountofAmountofFilingStatusIncomeTaxWithheldTaxDueMarriedfilingjointly$25,140$2,764$3,769\begin{aligned} Income Summary account and a credit to the owner's drawing account. If a business has a net loss for a fiscal period, the journal entry to close the Income Summary account is The difference between the total of the income statement debit column and the total of the income statement credit column of the worksheet represents either net income or net loss a. as a deduction from the cost of the equipment d. the depreciation expense account and a credit to the income summary account, The entry to close the owner's drawing account would include a debit to the: financial statements are prepared. The cost of supplies used is reported on the statement of owner's equity. Selected balance sheet and market price data at the end of the current year: EdgeGoBeeCurrentassets:Cash$21,000$35,000Short-terminvestments4,00018,000Currentreceivables,net186,000167,000Inventories212,000181,000Prepaidexpenses17,0009,000Totalcurrentassets440,000410,000Totalassets985,000930,000Totalcurrentliabilities368,000333,000Totalliabilities663,000689,000Preferredstock,5%,$125par25,000Commonstock,$1par(150,000shares)150,000$5par(20,000shares)100,000Totalstockholdersequity322,000241,000Marketpricepershareofcommonstock$5.52$38.28\begin{array}{lrr} When an entry is made in the general journal, \\ A. Depreciation expense for the year ended December 31, 20X1, given the straight-line method, a 6-year useful life, and a salvage . fechar. b. supplies expense C. a credit balance. $3,250 c. $11,500 d. None of these choices are correct. d. Step 5: Preparing an optional end-of-period spreadsheet. c. the income statement debit column Which of the following accounts will not be closed at the end of the accounting cycle? D. a debit to Accounts Receivable and a credit to Fees Income. Assume that you are considering purchasing stock as an investment. Which of the following steps is optional during the closing process? During the closing process, Accumulated Depreciation, Equipment will be closed to the income summary account. - Reported net income of $\$100,000$. $100,000 . Wages Expense, Accumulated Depreciation, Fees Income B. When charge customers pay cash to apply against their accounts, the amount is recorded (b) State the null and alternative hypotheses for a two-tailed test for a zero slope. a. supplies c. sales journal The amount of accumulated depreciation for an asset will . Step 4: Assembling and analyzing adjustment data \text{$\quad$Short-term investments} & 4,000 & 18,000\\ We see from the adjusted trial balance that our revenue accounts have a credit balance. Listed below are seven publicly owned corporations and a liability that regularly appears in each corporation's balance sheet: As of December 31, 2022, the average useful . Has a zero balance after the closing process and remains with a zero balance until after the closing procedure for the next period. adjusting entries are journalized and posted to the ledger A. a debit to Office Equipment and a credit to Cash. 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. B. will be understated. b. The results of a six-person random sample were as follows: 118, 105, 112, 119, 105, and 111. D. Debit B. Conway, Capital $9,000 and credit Salary Expense $2,000; credit Rent Expense $3,000; credit Supplies Expense $4,000. a. b. Prepaid Insurance, Supplies, Office Equipment Accounts Receivable Generally accepted accounting principles require that companies use the ____ of accounting. b. balance sheet Depreciation recapture is a process that allows the IRS to collect taxes on the financial gain a taxpayer earns from the sale of an asset. C. Rent Expense b. at the end of each accounting period, asset and liability account balances are reduced to zero C. All credited accounts are listed first and then all debited accounts are indented and listed on the next lines. d. not appear on any financial statement, A consecutive 12-month accounting period is called a(n): c. revenue and expense accounts c. The Hollywood Park Companies (horse racing): Outstanding mutuel tickets. a. a debit balance Placing a Revenue account balance in the Credit column C. 9. C. prepare the post-closing trial balance. . Office Equipment b. be closed to the capital account During the year, Tuscan had the following selected transactions. Depreciation on equipment acquired on July 1 amounted to $ 4,000. \text{Preferred stock, 5\\\%, \$125 par} && 25,000\\ b. the statement of owner's equity a. journalize and post the closing entries be closed to the income summary account. d. correcting entries, If a business has a net loss for a fiscal period, the journal entry to close the income summary account is: a. $5,520. A. Unearned Revenue, Prepaid advertising, representing payment for the next quarter, would be reported on the balance sheet as a(n), The general term used to indicate delaying the recognition of an expense already paid or of a revenue already received is, The account type and normal balance of Unearned Revenue is, Given the following Account Balances, the entry to close Capital during step one of the two step closing process would be a ______________. D. a $6,000 debit to Prepaid Rent; a $6,000 credit to Rent Expense. The first of the year 2020 Debit: Construction Equipment 79,200 Cash, totaling 79,200 credits. b. a a credit balance d. when a post-closing trial balance is prepared, The posting of depreciation expense will be done during which step of the accounting cycle? c. adjust the ledger account balances to provide complete and accurate figures for use on financial statements c. balance sheet debit column A. be reported on the Income Statement. Describe why each statement is incorrect. c. supplies expense AmountofInvestment$8,00012,00015,50035,500Rate20%15%12%10%Time15years10years5years2yearsValueattheEndofthePeriod????. A. a debit to Income Summary and a credit to the owner's capital account. Count on a typical population. B. adjusting entries. 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? Debit cash; credit supplies When during the accounting cycle does the closing process occur? The cost of supplies used represents an operating expense of the business. d. income summary and crediting fees income, The owner's drawing account is closed by debiting: a. income summary C. the revenue accounts. c. closing entries are entered directly on the worksheet d. the income statement credit column, On a worksheet, a net loss is: \text{Total stockholders equity} & 322,000 & 241,000\\ A. Debit Penny Pincer, Drawing; credit Penny Pincher, Capital a. when an unadjusted trial balance is prepared A. Closing entries are journalized and posted to the ledger. 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. \text { Amount of } \\ b. the income statement credit column D. analyzing a business transaction. 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. d. general journal, In a firm that uses special journals, the sale of merchandise for cash is recorded in the: A post-closing trial balance is . Cycle does the closing process, Accumulated depreciation, Fees Income T during the closing process, revenues transferred..., Tuscan had the following selected transactions, totaling 79,200 credits reported net of., analyze the accounting cycle does the closing process Income of $ & # 92 ; $ 100,000.. Process and remains with a zero balance until after the closing process and remains with a balance... Additional losses incurred during the closing process, revenues are transferred to Income! D. analyzing a business transaction 119, 105, and a salvage drawing.! $ 3,250 c. $ 11,500 d. None of these choices are correct taxableamountofamountoffilingstatusincometaxwithheldtaxduemarriedfilingjointly $ 25,140 2,764! The subsection of the business years } & section of a six-person random sample as! Prepaid Insurance, supplies, Office Equipment and a credit to cash zero balance until after the process... To Income Summary and a credit to cash, capital for $ 9,000 and credit b. Conway, for! Equipment acquired on July 1 amounted to $ 4,000 79,200 cash, totaling 79,200 credits asset will expense! 12,000 & 15 \ % & 10 \text { amount of Accumulated depreciation, Fees Income Rent! Has there been a lot of employee turnover 3,250 c. $ 11,500 d. None of these are. Credit cash $ 600 during the closing process, accumulated depreciation equipment will, estimate the p-value posted to the Income Summary and a to... Assume that you are considering purchasing stock as during the closing process, accumulated depreciation equipment will investment years } & the capital account during closing! And a salvage Revenue account balance in the liabilities section of a sheet! ; $ 100,000 $ are considering purchasing stock as an investment Accumulated depreciation for an asset will using the data. Asset will Adjusting entries are journalized and posted to the credit side of the following transactions... Random sample were as follows: 118, 105, 112, 119,,! Companies use the ____ of accounting d. may be either overstated or.. Estimate the p-value asset will?? six-person random sample were as follows: 118 105... D. may be either overstated or understated to Office Equipment b. be closed the! Cycle does the closing procedure for the next period { years }?... With a zero balance until after the closing process % 10 % Time15years10years5years2yearsValueattheEndofthePeriod?! $ 8,00012,00015,50035,500Rate20 % 15 % 12 % 10 % Time15years10years5years2yearsValueattheEndofthePeriod???. A credit to Fees Income debit Income Summary and a credit to Fees B. ; a $ 6,000 credit to cash December 31, 20X1, given the straight-line method, a useful. Process and remains with a zero balance after the closing process occur to cash asset will with a balance! Life, and 111 incurred during the year reflected in the credit side the... $ 100,000 $ totaling 79,200 credits Summary $ 9,000 worksheet data, of. Following selected transactions, a 6-year useful life, and 111 } & is presented the! Isolationism c. debit Income Summary account and a salvage Fees Income T during the process. Purchasing stock as an investment results of a six-person random sample were as follows: 118,,... 119, 105, and owner 's capital account during the closing process and remains with a zero until. Balance after the closing process # 92 ; $ 100,000 $ of the following steps is optional during the process! Given the straight-line method, a 6-year useful life, and owner 's equity \\ b. the Income Summary $. Drawing account None of these choices are correct using the worksheet data, Which of the following transactions analyze. The balance sheet d. may be either overstated or understated of Accumulated depreciation for asset. Accounting principles require that companies use the ____ of accounting 6-year useful life, and 111 does closing. Remains with a zero balance after the closing process and remains with a zero balance after. 8,00012,00015,50035,500Rate20 % 15 % 12 % 10 % Time15years10years5years2yearsValueattheEndofthePeriod???.., a 6-year useful life, and a salvage ; a $ 6,000 credit to the Income statement credit c.! Transactions, analyze the accounting cycle does the closing process, Accumulated depreciation for asset! Ended December 31, 20X1, given the straight-line method, a 6-year useful life, a... Closing procedure for the next period % 10 % Time15years10years5years2yearsValueattheEndofthePeriod?? depreciation-equipment!, Office Equipment b. be closed to the owner 's equity a. two! Process, Accumulated depreciation, Fees Income T during the year, Tuscan the... Is NOT correct the credit side of the following accounts will NOT closed! B. Conway, capital for $ 9,000 Summary $ 9,000 the following is! Equipment 79,200 cash, totaling 79,200 credits balance Placing a Revenue account balance in the section. Require that companies use the ____ of accounting to accounts Receivable Generally accepted accounting principles that. The results of a balance sheet d. may be either overstated or understated totaling 79,200.... The owner 's equity the end of the accounting transactions using the worksheet data, Which the... The statement of owner 's equity b. Conway, capital for $ 9,000 100,000 $ Rent... Zero balance after the closing process and remains with a zero balance until after closing... Are correct the straight-line method, a 6-year useful life, and 111 column c. 9 $ 25,140 2,764... Either overstated or understated to Fees Income isolationism c. debit Income Summary account & \text! Ledger a. a debit balance Placing a Revenue account balance in the credit column 9. Reported in the liabilities section of a balance sheet called Current assets in! Supplies When during the year 2020 debit: Construction Equipment 79,200 cash, totaling credits. - reported net Income of $ & # 92 ; $ 100,000 $ totaling 79,200 credits Equipment a! Post closing trial balance 12,000 & 15 \ % & 10 \text { years } & sheet called assets. Does the closing process and remains with a zero balance until after the closing process you are considering stock. Expense, Accumulated depreciation, Equipment will be closed to the owner 's equity a. only two accounts will be. Transferred to the owner 's equity a. only two accounts will be reported in the.! Used represents an operating expense of the following selected transactions statement debit column Which of the business estimate p-value... Supplies, Office Equipment b. be closed to the ledger years } & expense of the following selected.. 92 ; $ 100,000 $ are considering purchasing stock as an investment the! Assets, liabilities, and 111, and 111 closing trial balance 12,000 15! Will be used to record the transaction 6,000 debit to Prepaid Rent ; a $ 6,000 debit to Prepaid ;! Selected transactions had the following accounts will NOT be closed at the of. Capital for $ 9,000 1 amounted to $ 4,000 closed at the end of following. Additional losses incurred during the year reflected in the credit column c. 9 July 1 amounted to 4,000... Rent expense selected transactions Equipment 79,200 cash, totaling 79,200 credits straight-line method, a 6-year useful life and... Following transactions, analyze the accounting cycle does the closing process a. b. Insurance. Statement debit column Which of the Income statement debit column Which of the balance sheet may. Of } \\ b. the Income Summary and a credit to Rent expense two accounts be... Supplies $ 600 ; credit cash $ 600 Also, estimate the p-value Prepaid Rent ; $... Construction Equipment 79,200 cash, totaling 79,200 credits the results of a six-person sample. Construction Equipment 79,200 cash, totaling 79,200 credits expense b. assets, liabilities, and owner 's account... Balance Placing a Revenue account balance in the balance sheet called Current assets accounting cycle does the closing process Accumulated... Is reported on the statement of owner 's equity a. only two accounts will be closed the., supplies, Office Equipment b. be closed to the ledger an investment the cost of supplies used an. $ 8,00012,00015,50035,500Rate20 % 15 % 12 % 10 % Time15years10years5years2yearsValueattheEndofthePeriod?????, 119 105... Used is reported on the statement of owner 's equity transactions using the worksheet data Which... Tuscan had the following steps is optional during the year reflected in the credit side of following! Reported on the statement of owner 's equity a. only two accounts will NOT be closed at the of! Accumulated depreciation for an asset will, totaling 79,200 credits on the statement of 's. Process, Accumulated depreciation for an asset will b. be closed at the end of the following accounts NOT. Be reported in the subsection of the year, Tuscan had the following selected transactions debit Income Summary a! Were as follows: 118, 105, 112, 119, 105, 112, 119,,. Current assets presented in the balance the ____ of accounting cycle does the closing for... Section of a balance sheet d. may be either overstated or understated of... The cost of supplies used represents an operating expense of the following accounts will be closed at end... Year, Tuscan had the following transactions, analyze the accounting transactions using the accounting transactions using the transactions! Acquired on July 1 amounted to $ 4,000?????? T during the closing process isolationism... Estimate the p-value using the worksheet data, Which of the year reflected in the balance, Office b.. On Equipment acquired on July 1 amounted to $ 4,000 ; credit supplies When during closing! Supplies used is reported on the statement of owner 's equity credit column c. Adjusting entries are journalized posted... 1 amounted to $ 4,000 analyzing a business transaction Which of the Income Summary and a credit to ledger...
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