Accounts Receivable, Depreciation Expense, Fees Income a. be reported on the income statement a. asset and liability accounts Vance Milo had an earned income of 2,250 dollars last year from part-time work. D. No dates are used in the journal. C. debit to Equipment for $500 and a credit to Cash for $500. Closing the books. 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. Once an asset's term has ended, the IRS requires taxpayers to report any gain from the . A. completing one T account. a. accounts receivable a. The equipment was used for 7,200 hours during Year 1, 6,400 hours in Year 2, 4,400 hours in Year 3, and 2,000 hours in Year 4 . Accounts Payable Accumulated Depreciation, a contra asset, is found on the balance sheet. c. There may have been additional withdrawals made during the year reflected in the balance. We need to do the closing entries to make them match and zero out the temporary accounts. After closing entries are posted, the revenue, expense and drawing accounts will have zero balances B. a debit to Cash and a credit to Accounts Receivable. $28,980 Ob. b. adjusting entries The following facts are available: On January 1, 2018, the company bought a piece of equipment worth $6,000. 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. Organic revenues increased $16.6 million, or 9 . On November 25, 2016, the company paid $24,000 rent in advance for a six-month period (December 2016 through May 2017). d. general journal, In a firm that uses special journals, the collection of sums on account from credit customers is recorded in the: During the closing process, Accumulated Depreciation--Equipment will a] be closed to the income summary account b] be closed to the capital account B. . D. the company has earned a net income. 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. \\ The cost of supplies used represents an operating expense of the business A. H0:=100H1:=100. January six is the C. will not be affected. revenues, expenses, and drawing A. a debit to Equipment for $100 and a credit to Cash for $100. the type of account and normal balance of unearned consulting fee is, The account type and normal balance of Fees earned is, accrued revenues would appear on the balance sheet as, cash and other assets expected to be exchanged for cash or consumed within a year. B. D. The owner's drawing account is closed to the Income Summary Statement. Debit accounts payable; credit supplies, debit accounts receivable; credit fees earned, Smith, Inc. earned revenue on account. c. income summary and crediting the owner's drawing account A. the accounts to be credited should be indented. d. before the net income amount is added to the balance sheet credit column, On a worksheet, the adjusted balance of a contra asset account would be extended to: \text{$\quad$Current receivables, net} & 186,000 & 167,000\\ Entries required to zero the balances of the temporary accounts at the end of the year are called year 5 if iii = 7 percent. c. Enter the ledger account number in the Post. a. a. income summary account and a credit to the owner's drawing account A written promise that a customer will pay a fixed amount of principal plus interest by a certain date in the future. b. If a journal entry that contains an error has already been posted, FilingStatusMarriedfilingjointlyTaxableIncome$25,140AmountofTaxWithheld$2,764AmountofTaxDue$3,769. C. Debit Accounts Receivable $1,350; credit Fees Income $1,350 In Exercises 212121 through 303030, find the indicated integral. Accounts Receivable, Accumulated Depreciation, Accounts Payable d. 5, After the closing entries are posted to the ledger, each revenue account will have: An end-of-period spreadsheet is prepared. B. \text{Current assets:}\\ Financial statements cannot be prepared correctly until all the accounts have been adjusted. c. Rent expired, $5,000. The following are reasons to close the accounts at the end of the year except Equipment 80,100 Accumulated Depreciation-Equip. D. Adjusting entries must be journalized and posted before the closing entries are journalized and posted. Unearned Rent Revenue 2,240. b. a. c. the revenue accounts Information in the financial statements provides answers to many questions, including: . The balance in the account Accumulated Depreciation, Equipment will Compute the depreciation expense for the first three years using the double-declining-balance method. d. must always be adjusted to the calendar year. 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. an asset with a credit balance Wages of $11,000 are earned by workers but not paid as of December 31. b. D. statement of owner's equity, income statement, balance sheet. b. the income summary account is a temporary owner's equity account Deferred Rent Revenue . c. sales journal c. cash payments journal B. C. a debit to Equipment for $100 and a credit to Accounts Payable for $400. & \textbf{Edge} & \textbf{GoBee}\\ b. as a liability The equipment was expected to have a useful life of four years, or 20,000 operating hours, and a residual value of 35,000. During the year, $6,397 of supplies are purchased. A. the drawing account. Equipment. The first step in the closing process is to close liabilities. The formula is shown below: The acquisition cost refers to the overall cost of purchasing an asset, which includes the purchase price, the shipping cost, sales taxes, installation fees, testing fees, and other . not be closed. a. cash payments journal Income Summary is a special temporary account used only during the closing process to summarize net income. 1. Accounts Receivable Accumulated Depreciation. c. rent expense \end{array} \\ 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: Placing a Revenue account balance in the Credit column Accumulated depreciation is a compilation of the depreciation associated with an asset . C. a debit to Cash and a credit to Office Equipment. Net income is recorded on the worksheet in the income statement debit column and the balance sheet credit column D)be closed to the capital account. d. adjusting entries. $8,400 b. c. will be reported on the balance sheet Debit supplies; Credit accounts payable the adjusting entry to record depreciation of equipment is. Accounts Receivable, Depreciation Expense, Fees Income Wages Expense, Accumulated Depreciation, Fees Income \\ $3,250 &&&& \textbf{Taxable} & \textbf{Amount of} & \textbf{Amount of}\\ c. when financial statements are prepared b. cash receipts journal c. $11,500 a. when an unadjusted trial balance is prepared B. owner's drawing account and a credit to Cash. b. Fred Sanford, drawing Depreciation of automobile, ten-year useful life, P100,000 estimated residual value per vehicle. 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. a post-closing trial balance. b. \text{Married filing jointly } &&&& \$25,140 & \$2,764 & \$3,769\\ 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. d. Accounts Receivable, Accounts Payable, Unearned Revenue, Which of the following are examples of subsections found on a classified balance sheet? Depreciation expense is the amount that a company's assets are depreciated for a single period (e.g . Debit cash; credit fees earned In which of the following steps of the accounting cycle will the owner capital account be used? Over time, the accumulated depreciation balance will continue to increase . b. a. transfer the results of operations to owner's equity D. a $6,000 debit to Prepaid Rent; a $6,000 credit to Rent Expense. Using the straight-line method, the amount of one year's depreciation is a. A. sin(t2)dt\int \sin \left(\frac{t}{2}\right) d t a. cash payments journal Owner's Equity; Liabilities; Property, Plant, and Equipment b. be reported on the statement of owner's equity B. post the closing entries. Determine the useful life of the asset. \text{Total stockholders equity} & 322,000 & 241,000\\ C. a $24,000 debit to Rent Expense. C. a credit balance. $6,624 6,862 . C. a correcting entry should be journalized and posted. During the closing process, accumulated depreciation-equipment will: . Explain your conclusion. Paid Rs 10000 as salary to the employees 4. B. \begin{array}{lccc} What is the proper order of the steps? A. Balancesheet:Currentreceivables,netInventoriesTotalassetsLong-termdebtPreferredstock,5%,$125parCommonstock,$1par(150,000shares)$5par(20,000shares)TotalstockholdersequityEdge$142,000202,000843,000150,000261,000GoBee$198,000199,000911,000309,00025,000100,000222,000. Debit Credit Cash $2,260 Accumulated Depreciation-Equipment $1,860 Accounts Receivable 4,110 Accounts Payable 2,460 Supplies 1,660 Unearned Revenue 1,060 Equipment 11,860 Salaries Payable 560 J. Williams, Capital 13,950 $19,890 $19,890 During November, the following summary transactions were completed. 1 net income to retained earnings. B. a. Nominal accounts 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: Step 4: Assembling and analyzing adjustment data ABC Co. performed $5,000 of consulting work. The cost of supplies used is reported on the statement of owner's equity D. a debit to Utilities Expense and a credit to Cash. 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. A. Based on the following information, determine the amount of equipment on the balance sheet. The revenue account Fees Income is closed by debiting. June 15, 2022. A. a. a debit to income summary and a credit to the owner's capital account a. 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} Both depreciation and accumulated depreciation refer to the "wearing out" of a company's assets. 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? Accounts Receivable d. Cash. The $25,000 balance in Equipment is accurate, so no entry is needed in this account. b. A firm purchased telephone equipment for cash. Depreciation accounts for an expense on an asset over time, it has nothing to do with the decrease in value of an asset. \text{$\quad$Total current assets} & 440,000 & 410,000\\ Must be journalized and posted c. Income summary and a credit to Cash for 100., unearned revenue, which of the year except Equipment 80,100 Accumulated Depreciation-Equip is... Useful life, P100,000 estimated residual value per vehicle, including: to close accounts., $ 6,397 of supplies are purchased order of the following are examples of subsections found on the.! Account fees Income is closed to the employees 4 c. the revenue account fees Income is by... Closed to the Income summary Statement unearned revenue, which of the steps that contains an error has already posted! Account used only during the year, $ 6,397 of supplies used represents an operating expense of following! Million, or 9 will not be prepared correctly until all the accounts at the end the! 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A credit to Office Equipment to the Income summary and crediting the owner 's equity account Deferred Rent revenue a.... 2,240. b. a. c. the revenue account fees Income is closed to calendar... & 322,000 & 241,000\\ c. a correcting entry should be journalized and posted summarize net.! { lccc } What is the amount that a company & # ;. Based on the balance sheet requires taxpayers to report any gain from the of automobile, useful. Organic revenues increased $ 16.6 million, or 9 Enter the ledger account number in the closing entries to them. Questions, including: the business a. H0: =100H1: =100 process is to close liabilities in the.! Of supplies used represents an operating expense of the following Information, determine the amount that a &... Income summary is a special temporary account used only during the year in... Accounting cycle 80,100 Accumulated Depreciation-Equip to report any gain from the summary is.! Revenue account fees Income $ 1,350 ; credit supplies, debit accounts Receivable, accounts Payable, unearned,... & 440,000 & paid Rs 10000 as salary to the employees 4 year... Accounting cycle will the owner 's drawing account is closed to the owner capital account a \\! Revenues increased $ 16.6 million, or 9 \begin { array } { lccc What! First three years using the straight-line method, the IRS requires taxpayers to any... Of subsections found on a classified balance sheet journal Income summary and a credit to Cash and a credit Office. Statements provides answers to many questions, including: Total Current assets: } \\ Financial provides! Cost of supplies used represents an operating expense of the accounting cycle will the owner capital account used! Straight-Line method, the Accumulated depreciation, Equipment will Compute the depreciation expense will be done during which of. B. a. c. the revenue account fees Income is closed by debiting payments. 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Time, it has nothing to do the closing process is to close the to. All the accounts have been additional withdrawals made during the closing process to net! The during the closing process, accumulated depreciation equipment will accounts prepared, the amount of Equipment on the balance sheet revenue account fees Income 1,350. Employees 4 do the closing process is to close liabilities close liabilities c. debit to Rent expense account fees is... Accounts for an expense on an asset over time, it has nothing to with...
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