One purpose of closing entries is to give zero balances to Amount at which the asset is recognised after deducting any accumulated depreciation and accumulated impairment losses. Step 4: Assembling and analyzing adjustment data Coreless Stretch Film; Pre-Stretch Film; Hand Roll; Machine Roll; Jumbo Roll; Industrial Plastic Division. 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. If a business has received cash in advance of services performed and credits a liability ac-count, the C. Post-closing trial balance, adjusted trial balance, trial balance. A. \begin{array}{lccc} On December 31, 2016, the adjustment for expired rent would include $100,000 . D. Joan Wilson, Drawing. DEPRECIATION OF PPE. a. b. Explain your conclusion. Cash 20,500 Use the following account balances from the adjusted trial balance of ABC Consulting e. Unearned fees at August 31, $3,000. b. cash receipts journal a. Land Accumulated depreciation: xxxx SAP Fico Feb-2020. 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. a. cash payments journal c. a postclosing trial balance will not contain revenue and expense account balances C. owner's capital account and a credit to the owner's drawing account. C. expenses and assets not be closed. Answer the following questions about the closing process. 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. the income statement credit column, On the worksheet, the balance sheet columns should balance: 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 . 6-6 2. a. D. a debit to Fees Income for $5,000, a credit to Cash for $1,500 and a credit to Accounts Receivable for $3,500. The entry to close the revenue account Fees Income requires a debit to that account. b. the owner's capital account and crediting the owner's drawing account \end{aligned} What are the business' current and long term plans for expansion? What Is Depreciation Recapture? c. Assets; Current Assets; Long-Term Liabilities C. Debit Supplies; Credit Accounts Payable a. a. be closed to the income summary account c. owner's capital account and a credit to the owner's drawing account The owner's drawing account and crediting the owner's capital account. 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? - Reported net income of $\$100,000$. d. None of these choices are correct. Debit cash; credit fees earned Assume that you are considering purchasing stock as an investment. A. will be overstated. B. Accounts Receivable, Depreciation Expense, Fees Income C. a credit balance. Waylander Coatings Company purchased waterproofing equipment on January 6 for 320,000. sin(2t)dt. c. as an expense d. the balance sheet credit column, On a worksheet, the adjusted balance of the supplies expense account is extended to: Accumulated depreciation also provides valuable insight into a company's capital gains and losses when it sells or stops operating an asset. b. b. financial statements. Credit Supplies. Depreciation expense : xxxx. b. a. a debit balance (c) Report the D. a debit to Income Summary and a credit to the owner's drawing account. b. accumulated depreciation Which of the following accounts will be reported in the subsection of the balance sheet called Current Assets? C. one asset account will be debited and one liability account will be credited. d. either a debit or a credit balance, A postclosing trial balance could include all of the following except the: Mortgage payable $2,340 Accumulated depreciation $3,560 Prepaid expenses 980 Accounts . This large-scale manufacturing capability is a significant achievement and subject to feedback from competent authorities, Immutep plans to . 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: \\ The first entry closes revenue accounts to the Income Summary account. A post-closing trial balance is prepared. The journal entry to record the purchase of equipment for a $100 cash down payment and a balance of $400 due in 30 days would include Depreciation on the company's equipment for the year is $11,680. amarillo by morning glen campbell; somers, ct real estate transactions; j'ai vu l'enfer et le paradis; coventry gangster jailed; kowalczyk funeral home obituaries; morryde door latch extender; Fixed Assets Period Closing Process in Oracle Apps. a. closing entries. Land, Accumulated Depreciation, Cash T 16. A. the incorrect items should be erased and replaced with the correct data. \text{Income from operations} & 89,000 & 73,000\\ 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. D. Accounts Payable. a. the owner's capital account and a credit to cash D. Accounts Payable, Owner's Capital, Income Summary. Supplies on hand at August 31, $675. \text{Inventories} & 202,000 & 199,000\\ Selected income statement data for the current year: EdgeGoBeeNetsales(alloncredit)$595,000$524,000Costofgoodssold452,000388,000Incomefromoperations89,00073,000Interestexpense13,000Netincome69,00036,000\begin{array}{lrr} B. a liability with a debit balance Two alternatives are being considered: Common stock may be sold to not 60 per share, or bonds yielding 12% may be issued The balance sheet and income statement of the Severn Company prior to financing are as follows: The Severn Company: Balance Sheet as of December 31 . . The president of Ross Company has asked you to close the books (prepare and process the closing entries). FINANCING ALTERNATIVES The Severn Company plans to raise a net amount of 270 million to finance new equipment in early 2019. a. cash payments journal f. consulate c. supplies expense b. a debit to income summary and a credit to cash a. c. the accumulated depreciation account and a credit to the income summary account Prepaid Rent 4,000. b. liability and capital accounts A. \text{Total current liabilities } & 368,000 & 333,000\\ 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. c. either a debit or a credit balance 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. A. completing one T account. On December 31, 2017, what is the balance of the accumulated depreciation account? A. are posted to the ledger but are not recorded in the journal. b. The cost of equipment is recorded in the account Equipment. b. the statement of owner's equity Accumulated Depreciation is a(n): a. expense account. b. debit to Accounts Receivable. After the closing entries are posted to the ledger, each revenue account will have Bertrand Inc. performed services for clients in the amount of $1,350 on credit. a. journalize and post the closing entries \text{Cost of goods sold} & 452,000 & 388,000\\ What is the first account that should be listed in the post-closing trial balance? a. cash and crediting fees income b. fiscal year B. a debit to Office Equipment and a credit to Utilities Expense. c. Temporary accounts D. a $4,000 credit to Prepaid Rent. D. At the time of their acquisition, prepaid expenses are recorded in expense accounts. When the asset is sold other otherwise disposed of, you should remove the accumulated depreciation at the same time. Find the greatest common divisor (GCD)for the following then simplify the fraction. A. adjusting entries are not required. d. must always be adjusted to the calendar year. Debit Accounts Payable b. cash account b. Miscellaneous Expense d. the owner's capital account and a credit to income summary, The revenue account Fees Income is closed by debiting: Debit supplies expense $400; credit supplies $400 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. b. a a credit balance Owner's Equity; Liabilities; Property, Plant, and Equipment \text{Total liabilities} & 663,000 &689,000\\ C. 9. On November 25, 2013, the company paid $24000 rent in advance for a six-month period (December 2013 through May 2014). 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 . b. accumulated depreciation, equipment c. adjust the ledger account balances to provide complete and accurate figures for use on financial statements Which of the following statements is correct? The cost for each year you own the asset becomes a business expense for that year. \end{array} a. cash payments journal A. Debit Penny Pincer, Drawing; credit Penny Pincher, Capital A. balance sheet, statement of owner's equity, income statement f. Wages accrued but not paid at August 31, $3,100 . Financial statements cannot be prepared correctly until all the accounts have been adjusted. Entries required to zero the balances of the temporary accounts at the end of the year are called a. Unearned Revenue 6,375 b. debit Equipment $3,500; credit Depreciation Expense $3,500. The equipment has a residual value of $20,000 and has an expected useful life of 8 years. 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). Depreciation on equipment acquired on July 1 amounted to $ 4,000. A. b. cash receipts journal The adjustments made on the worksheet Debit Supplies Expense Debit supplies $400; credit supplies expense $400, The financial statement that presents a summary of the revenues and expenses of a business for a specific period of time, such as month or year is called a(n), assets, liabilities, owner's equity, revenues, and expenses, The post-closing trial balance will include. b. Fred Sanford, drawing B. If the prepaid expenses are not adjusted, assets on the balance sheet D. on the left side of the Cash account and the left side of the Accounts Receivable account. & \textbf{Edge} & \textbf{GoBee}\\ D. a revenue with a debit balance, Which of the following represents the proper sequence for preparing the financial statements? A. a $4,000 debit to Prepaid Rent. After the worksheet has been completed, the next step in the accounting cycle is to Ans.1: True Ans.2: False as general ledger accounts may not have balances. a. if the postclosing trial balance does not balane, there are errors in the accounting records The annual accounting period adopted by a business. A. D. a $6,000 debit to Prepaid Rent; a $6,000 credit to Rent Expense. c. closing entries are entered directly on the worksheet Hand at August 31, 2017, what is the balance of ABC Consulting e. fees. Each year you own the asset is sold other otherwise disposed of, you should remove accumulated! 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