a. c. a contra asset on the balance sheet fechar. c. sales journal 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. B. C. will be reported on the Balance Sheet. How much do customers owe the business? a. income summary He also earned 24.15 dollars in interest from a savings account. b. accounts payable d. An unadjusted trial balance is prepared. Assume a company has equipment which is used in its business. Which of the following statements is not correct? A. B. a. b. to close all real accounts. a. debit capital $11000; credit income summary $11000 C. debit to Equipment for $500 and a credit to Cash for $500. 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 d. adjusted year, Accumulated depreciation, equipment, is shown as: You have narrowed the choice to either Edge Corporation stock or GoBee Company stock and have assembled the following data for the two companies. A. the incorrect items should be erased and replaced with the correct data. b. journalize and post the adjusting entries Purchased goods on credit from Ms. Ritu at Rs 40000 3. c. after the net income amount is added to the balance sheet credit column & \textbf{Edge} & \textbf{GoBee}\\ b. $100,000 . Accounts that report amounts for only one period. Accumulated depreciation is a compilation of the depreciation associated with an asset . c. Temporary accounts c. the balance sheet debit column C. a debit to Equipment for $100 and a credit to Accounts Payable for $400. The entry to close the owner's drawing account would include a debit to the Mortgage payable $2,340 Accumulated depreciation $3,560 Prepaid expenses 980 Accounts . A. a debit to Equipment for $100 and a credit to Cash for $100. On October 31, 2024, the account balances of Williams Equipment Repair were as follows. Calculate the retained earnings balance at December $31, 2019$. 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. The president of Ross Company has asked you to close the books (prepare and process the closing entries). A. will be overstated. c. credit to Fees Earned. Accumulated Depreciation is a(n): a. expense account. Transcribed Image Text: Cash Accounts Receivable Prepaid Expenses Equipment Accumulated Depreciation Accounts Payable Notes Payable Common Stock Retained Earnings Dividends Fees Earned Wages Expense Rent Expense Utilities Expense Depreciation Expense Miscellaneous Expense Adjusted That Baranice December 31 Totals Determine the current assets. The balance sheet debit column C. Debit Supplies; Credit Accounts Payable \end{array} Enter the date of the transaction in the ledger account. There may have been additional losses incurred during the year reflected in the balance. 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: The annual accounting period (fiscal year) most commonly adopted by businesses is Land, Accumulated Depreciation, Cash A. the drawing account. be closed to the drawing account. \\ The cost of supplies used represents an operating expense of the business a. cash payments journal Listed below are seven publicly owned corporations and a liability that regularly appears in each corporation's balance sheet: c. a credit balance One purpose of closing entries is to give zero balances to If a business has received cash in advance of services performed and credits a liability ac-count, the (c) Report the a. income statement debit column January six is the \text{Long-term debt } & - & 309,000\\ c. cash payments journal A. Debit to Cash; Credit Supplies d. Cash. 3. C. a debit to Accounts Receivable for $3,500 and a credit to Fees Income for $3,500. What are the business' current and long term plans for expansion? B. b. be closed to the capital account Service Revenue \\ a. if the postclosing trial balance does not balane, there are errors in the accounting records C. Rent Expense.. 8,000 Working capital is b. stockholders' equity account. If an owner wanted to know how much money flowed into and out of the company, which financial statement would the owner use? \text{Preferred stock, 5\\\%, \$125 par} && 25,000\\ 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 On December 31, 2013, the adjustment for expired rent would include: The adjusting entry to account for the use of supplies consists of: The adjusting entry to account for the expiration of prepaid insurance consists of: The adjusting entry to account for the expiration of prepaid advertising consists of: Which of the following statements is not correct? 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. D. owner's drawing account and a credit to the Income Summary account. The balance of the owner's drawing account on the adjusted trial balance of the end-of-period spreadsheet is reported on which of the following financial statements? d. either a debit or a credit balance, A postclosing trial balance could include all of the following except the: Instructions The equipment is estimated to have a useful . Given the choices below, which one depicts the trial balances in the correct order in which they would be prepared? 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 . 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? 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. Furniture. B. Question 1: For the following transactions, analyze the accounting transactions using the accounting equation framework 1. c. prepare the post closing trial balance The asset cost minus accumulated depreciation is known as the book value (or "net book value") of the asset. Which of the following accounts is not closed? Debit cash; credit fees earned c. the income statement debit column d. 5, After the closing entries are posted to the ledger, each revenue account will have: the ledger B. a debit to Cash for $1,500 and a credit to Fees Income for $1,500. b. the adjusting entries do not need to be journalized. d. fees income, All of the following accounts will appear on the postclosing trial balance except: B. a $5,000 debit to Rent Expense; a $5,000 credit to Prepaid Rent. 4. Fixed Assets Period Closing Process in Oracle Apps. 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 . Depreciation accounts for an expense on an asset over time, it has nothing to do with the decrease in value of an asset. The audit trial should be used to trace data through the accounting records to find and correct errors C. Post-closing trial balance, adjusted trial balance, trial balance. a. be closed to the income summary account Required: After the closing process has been completed, answer the following questions: . Accumulated depreciation is the cumulative depreciation of an asset up to a single point in its life. B. TaxableAmountofAmountofFilingStatusIncomeTaxWithheldTaxDueMarriedfilingjointly$25,140$2,764$3,769\begin{aligned} \text{$\quad$Current receivables, net} & 186,000 & 167,000\\ D. Accounts Payable and Equipment, The ending balance of the capital account appears as a separate line item on what two statements? A double rule applied to accounts in the ledger during the closing process implies that a. the account is 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 ______________. b. a reduction of capital on the statement of owner's equity Owner's Equity; Liabilities; Property, Plant, and Equipment During the closing process, Accumulated Depreciation, Equipment will. Debit supplies; Credit accounts payable Fixtures . b. C)be closed to the drawing account. \hline \begin{array}{c} A. b. f. consulate \end{array} \\ a. accounts receivable \text{Total assets} & 843,000 & 911,000\\ Accounts Receivable, Depreciation Expense, Fees Income \\ Let us take the example of a company to calculate the depreciation expense during the year and illustrate the journal entry of the depreciation expense in the financial statements. d. not appear on any financial statement, A consecutive 12-month accounting period is called a(n): slope significantly different from zero? c. adjust the ledger account balances to provide complete and accurate figures for use on financial statements The owner's capital account and crediting the owner's drawing account. D. are recorded in the journal and then posted to the general ledger accounts. chandan. e. Unearned fees at August 31, $3,000. A post-closing trial balance is prepared. The entry to close the revenue account Fees Income requires a debit to that account. D. a revenue with a debit balance, Which of the following represents the proper sequence for preparing the financial statements? A post-closing trial balance is . sin(t2)dt\int \sin \left(\frac{t}{2}\right) d t Netsales(alloncredit)CostofgoodssoldIncomefromoperationsInterestexpenseNetincomeEdge$595,000452,00089,00069,000GoBee$524,000388,00073,00013,00036,000. FINANCING ALTERNATIVES The Severn Company plans to raise a net amount of 270 million to finance new equipment in early 2019. The error was discovered after the data posted. a. closing entries. D. $5,667. C. Debit Income Summary; credit Penny Pincher, Drawing 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? \\ Diane's Designs purchased a one-year liability insurance policy on March 1 of a year for $8,400 and recorded it as a prepaid expense. D. T. Stark, Drawing, Identify the accounts below that are ALL classified as temporary accounts. The purchase of equipment is an example of a financing activity. B. owner's drawing account and a credit to Cash. C. preparing financial statements. Accounts Receivable, Accumulated Depreciation, Accounts Payable d. All of the above, The asset, liability and owner's capital accounts appear on all of the following except the: The depreciated cost of an asset can be calculated by deducting the acquisition cost of the asset by the accumulated depreciation. a. cash and crediting fees income a. be reported on the income statement Accumulated Depreciation-Equipment 367.00 Postclosing Trial Balance. \text{$\quad$Prepaid expenses} & \underline{17,000} & \underline{9,000}\\ d. the owner's drawing account is closed to the income summary statement, The entry to close the depreciation expense account would include a debit to: For the first transaction, wages owned by the employees during December amounted to 30 and the last parole was on December 20. ppp-value and the 95 percent confidence interval for the slope shown in the regression results. ($100,000 - $20,000) / 8 = $10,000 in depreciation expense per year. Accumulated Depreciation - Equipment $7,500 Which financial statement is a representation of the accounting equation? D. 5. B. c. April 1 to March 31. Fees Earned $1,000 A. a. supplies A debit to Income Summary and a credit to Capital. Income Summary 925 Fees Earned 750 Rent Revenue 175 C. Dec. 31 Revenues 925 Income Summary 925 D. Dec. 31 Income Summary 925 . An economist investigated the association between a country's Literacy Rate and Gross Domestic Product (GDP) and used the association to draw the following conclusions. c. owner's capital account and a credit to the owner's drawing account 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? 750 Rent revenue 175 c. Dec. 31 Revenues 925 Income Summary 925 a. be on... 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