during the closing process, accumulated depreciation equipment will

No units were extracted during 2024 due to an employee strike. We need to do the closing entries to make them match and zero out the temporary accounts. Subtract the estimated salvage value of the asset from the cost of the asset to get the total depreciable amount. column of the ledger account. During the closing process, what . a. cash which of the accounts below would be closed by posting a debit to the account? B. liability and capital accounts. C. will not be affected. Oa. Determine the new balance of the ledger account. A. c. the owner's capital account and crediting fees income d. to close all nominal accounts. Accumulated Depreciation is a(n): a. expense account. Depreciation Expense Supplies Expense Data needed for year-end adjustments are as follows: a. Unbilled fees at August 31, $9,150. Which of the following amounts would be recorded as insurance expense during the adjusting process at the end of Diane's first month of operations on March 31? The first step in the closing process is to close The post-closing trial balance should be completed: income statement, statement of owner's equity, balance sheet, the correct order to prepare the financial statements is, to zero out temporary accounts to prepare for the next accounting period, The pupose of closing temporary accounts is, Is independence impaired on these SEC filing, Chapter 11 & 12: Completing the Audit & Repor, Revenue & Collection Cycle, Acquisition & Exp, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield. The depreciated cost of an asset can be calculated by deducting the acquisition cost of the asset by the accumulated depreciation. Debit supplies; Credit accounts payable c. Temporary accounts During the closing process, Accumulated Depreciation, Equipment will. Which of the following accounts has a normal credit balance? A company's net income or net loss for a period is determined during which of the following steps of the accounting cycle? 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. On December 31, 2016, the adjustment for expired rent would include 6-30 If the postclosing trial balance does not balance, the accounting records contain Accounts Payable 4,690. A. Consider the following series of cash flows: Clearly set up an expression and determine the value of a lump sum equivalent amount of the above cash flows at When during the accounting cycle does the closing process occur? Step 7: Preparing the financial statements c. fees income How much do customers owe the business? D. Has there been a lot of employee turnover? Choose the correct journal entry D. $5,667. d. There may have been additional revenue made during the year reflected in the balance. By mistake, the person who recorded the transaction debited Utilities Expense instead of Office Equipment. 3. a. be reported on the income statement 12,000 & 15 \% & 10 \text { years } & ? B. the statement of owner's equity and the income statement b. the owner's capital account and crediting the owner's drawing account c. income summary and crediting the owner's drawing account 2. Debit supplies expense $400; credit supplies $400 b. reduce the owner's capital account balance to zero so that the account is ready for the next period d. either a debit or a credit balance, A postclosing trial balance could include all of the following except the: b. fees income be closed to the drawing account. 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? C. a debit to Cash and a credit to Office Equipment. a. cash payments journal a. accounts payable 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 . C. a debit to Fees Income and a credit to Accounts Receivable. \text{Preferred stock, 5\\\%, \$125 par} && 25,000\\ b. fees income C. A post-closing trial balance will not contain revenue and expense account balances. The following facts are available: On January 1, 2018, the company bought a piece of equipment worth $6,000. The company would realizes a loss of $ 3,000 ($45,000 cost - $14,000 accumulated depreciation is $31,000 book value $28,000 sales price). 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} 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 The process of allocating the cost of a long-term asset as an expense of operations during the asset's expected useful life is known as ____. Which of the following statements is not correct? 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. \text{Total current liabilities } & 368,000 & 333,000\\ b. cash receipts journal The journal entry to record cash received from clients on account would include a a. the income summary account and a credit to the accumulated depreciation account D. owner's drawing account and a credit to the Income Summary account. Credit Supplies. c. Depreciation of office equipment, five-year useful life, 10% estimated residual value per set. An end-of-period spreadsheet is prepared. During the closing process, Accumulated Depreciation, Equipment will. C. debit to Equipment for $500 and a credit to Cash for $500. D. Rent Expense.. 4,000 A post-closing trial balance is . C. a $1,000 debit to Rent Expense; a $1,000 credit to Prepaid Rent. a. a zero balance when a corporation adopts a fiscal year that ends when business activities have reached the lowest point in its annual operating cycle, the ability of a business to pay its debts, The excess of the current assets of a business over its current liabilities. On October 31, 2024, the account balances of Williams Equipment Repair were as follows. b. c. Enter the ledger account number in the Post. b. a debit to income summary and a credit to capital c. balance sheet debit column 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: c. the balance sheet debit column Which of the following would result in an error when preparing the Trial Balance? Stretch Film Division. 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. If the prepaid expenses are not adjusted, assets on the balance sheet a. D. Joan Wilson, Capital. Prepaid Insurance b. The Income Summary account is a temporary owner's equity account. c. liability account. A.$880. The amount of accumulated depreciation for an asset will . b. debit to Accounts Receivable. 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. d. credit to Accounts Receivable. b. adjusting entries 5,110 Prepaid rent 3,190 Total current assets TA Property, plant, and equipment: Land 106,000 Equipment 79,340 Accumulated depreciation - equipment 27,450 Book value - equipment Total property, plant, and equipment Total . 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. 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. 5. B. B. Which of the following entries records the closing of Penny Pincher, Drawing at the end of the accounting period? We see from the adjusted trial balance that our revenue accounts have a credit balance. c. Cash, Accounts Receivable, Supplies c. Closing entries are journalized and posted to the ledger. b. June 1 to May 31. a firm purchased equipment for $9,300. If a journal entry that contains an error has already been posted, d. the income statement credit column, On the worksheet, the balance sheet columns should balance: A. adjusting entries are not required. The cost of supplies used represents an operating expense of the business. D. asset accounts should be indented. How much do customers owe the business? \text{Total assets} &985,000 & 930,000\\ Paid Rs 10000 as salary to the employees 4. Which of the following statements is not correct? a. a debit to income summary and a credit to fees income At the time of purchase, the equipment was estimated to have a useful life of six years and a salvage value of $880. Owner's Equity; Liabilities; Property, Plant, and Equipment Which of the following accounts will be reported in the subsection of the balance sheet called Current Assets? Given the choices below, which one depicts the trial balances in the correct order in which they would be prepared? &H_0: \mu =100 \\ Based on the following information, determine the amount of equipment on the balance sheet. a. d. Adjusting entries must be journalized and posted before the closing entries are journalized and posted, Which of the following statements is not correct? \text{Common stock, \$1 par (150,000 shares)} & 150,000\\ The equipment is estimated to have a useful . C. Has the business achieved its net income goal for the year? b. is not characterized by any of these answer choices. d. Accounts Receivable, Accounts Payable, Unearned Revenue, Which of the following are examples of subsections found on a classified balance sheet? \begin{array}{lccc} In Exercises 212121 through 303030, find the indicated integral. d. Depreciation of equipment during year, $3,300. Vance Milo had an earned income of 2,250 dollars last year from part-time work. \end{array} Verify that the total of the debit and credit columns equals a. the income statement debit column D. will always affect cash. owner's equity A. b. accumulated depreciation Accounts Receivable 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 . Currentassets:CashShort-terminvestmentsCurrentreceivables,netInventoriesPrepaidexpensesTotalcurrentassetsTotalassetsTotalcurrentliabilitiesTotalliabilitiesPreferredstock,5%,$125parCommonstock,$1par(150,000shares)$5par(20,000shares)TotalstockholdersequityMarketpricepershareofcommonstockEdge$21,0004,000186,000212,00017,000440,000985,000368,000663,000150,000322,000$5.52GoBee$35,00018,000167,000181,0009,000410,000930,000333,000689,00025,000100,000241,000$38.28. Accumulated Depreciation, a contra asset, is found on the balance sheet. A. If this transaction had been posted in error to the Cash account instead of the Accounts Receivable account, what correcting entry would be necessary? The annual accounting period adopted by a business. C. Fees Income and John Smith, Capital c. Accumulated depreciation-equipment is presented in the liabilities section of a balance sheet Accounts Receivable and Fees Income d. adjusting entries. \end{array} \\ d. an expense on the income statement, The adjustments made on the worksheet assets, liabilities, owner's equity Assume a company has equipment which is used in its business. B. C. Owner's Drawing, Depreciation Expense, Income Summary Company vehicles. b. a reduction of capital on the statement of owner's equity d. Transactions are posted to the ledger. The equipment's cost was $600,000 and is expected to last for 10 years at which time it will be scrapped for no salvage value. slope significantly different from zero? C. Rent Expense.. 8,000 Using the straight-line method, the amount of one year's depreciation is B. Debit to Supplies; Credit Accounts Receivable When the trial balance totals are not equal, the error may have been caused by recording a debit as a credit if the difference is divisible by a. posting entries 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. \end{array} A financial statement user would determine if a company was profitable or not during a specific period of time by reviewing the, Accounts reported on the balance sheet that are carried forward from year to year are known as permanent accounts, What affect will this entry have on the accounting records? a. prepare the financial statements a. should end during the busiest month of the company's operating cycle. c. will be different each year. d. none of the above, Which of the following accounts would be closed? not be used. 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. b. the income summary and a credit to cash Accumulated Depreciation-Equipment. What are the business' current and long term plans for expansion? a. accounts receivable 4. After closing entries are posted, the revenue, expense and drawing accounts will have zero balances What can you do if you have a dispute involving a purchase on a credit card? a. journalize and post the closing entries c. purchases journal B. Depreciation on equipment acquired on July 1 amounted to $ 4,000. DEPRECIATION OF PPE. After the closing entries are posted to the ledger, each revenue account will have The correcting entry should contain Debit Accounts Payable Information in the financial statements provides answers to many questions, including: . c. Income from services An explanation is indented and entered on the line underneath the last credit in the entry. $9,732 Od. c. a debit to cash and a credit to income summary 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: B. updating entries for previously unrecorded expenses or revenues. Revenues for the three-month period ended December 31, 2022 increased 14% to $205.4 million compared to $180.4 million in the fourth quarter of 2021. b. a debit to income summary and a credit to cash liabilities and owner's equity - 33250= 11500. The annual accounting period (fiscal year) most commonly adopted by businesses is a. income statement Choose the letter of the correct term or concept below to complete the sentence. f. consulate b. supplies expense A. a debit to Equipment for $100 and a credit to Cash for $100. . Introduced Rs500000 through a cheque by the Owner as the Initial capital in the business 2. The balance sheet debit column b. accounts payable c. There may have been additional withdrawals made during the year reflected in the balance. d. a debit to income summary and a credit to the owner's drawing account, Which of the following accounts will not normally have a zero balance after the closing entries have been posted? \text { Value at the End } \\ Compute the amount to be refunded or the balance due in each case. a. cash payments journal 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 . \text{Current assets:}\\ h. multilateral treaty, The president's foreign policies often have enjoyed_____congressional support. B. one account balance will increase and another will decrease. 'Depreciable amount' is the cost of an asset, cost less residual value, or . \text{Total stockholders equity} & 322,000 & 241,000\\ . B. owner's drawing account and a credit to Cash. b. a. the income summary account and a credit to the depreciation expense account revenues, expenses, and drawing C. A debit to Capital and a credit to Income Summary. 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 e. P35,000 worth of office supplies were used. On March 1, 2016, the company paid $6,000 rent in advance for a 12-month period. . c. supplies expense year 5 if iii = 7 percent. B. a debit to Office Equipment and a credit to Utilities Expense. a. cash payments journal b. when transactions are posted to the ledger Accumulated Depreciation: $9,800. Service Revenue Equipment 80,100 Accumulated Depreciation-Equip. d. T. Stark, Capital, Which of the following has a normal credit balance? Their customer paid them $1,500 right away and agreed to pay the balance in 30 days. D. Accounts Payable and Equipment, The ending balance of the capital account appears as a separate line item on what two statements? Cash Of the following steps of the accounting cycle, which step should be completed last? \text { Investment } d. the balance sheet credit column, On a worksheet, the adjusted balance of the supplies expense account is extended to: c. owner's drawing d. bipartisan Accounts Receivable d. general journal, In a firm that uses special journals, the sale of merchandise for cash is recorded in the: IAS 16 defines depreciation as 'the systematic allocation of the depreciable amount of an asset over its useful life'. d. Cash. On a worksheet, the adjusting entry to account for depreciation of equipment consists of: If the prepaid expenses are not adjusted assets on the balance sheet: If long term assets are not adjusted, expenses on the income statement. Transfer the expense account balances to the . C. expenses and assets B. post the closing entries. D. Accounts Payable. If a transaction is properly analyzed and recorded, Financial statements cannot be prepared correctly until all the accounts have been adjusted. a. A written promise that a customer will pay a fixed amount of principal plus interest by a certain date in the future. Ans.1: True Ans.2: False as general ledger accounts may not have balances. C. not required. B. Has a zero balance after the closing process and remains with a zero balance until after the closing procedure for the next period. b. cash account b. A. will be overstated. Adjusted trial balance, trial balance, post-closing trial balance. Accumulated Depreciation: Equipment has a January 31 credit entry of 75 and a credit balance of 75. C. a correcting entry should be journalized and posted. transactions are posted to the ledger C. liability, capital, and revenue accounts should be indented. Question 1: For the following transactions, analyze the accounting transactions using the accounting equation framework 1. c. the accumulated depreciation account and a credit to the income summary account One purpose of closing entries is to: transfer the results of operations to owner's equity. For the first transaction, wages owned by the employees during December amounted to 30 and the last parole was on December 20. c. need not be entered in the journal or the ledger $3,250 b. sales journal When done properly, how many journal entries are involved in the closing process? You have narrowed the choice to either Edge Corporation stock or GoBee Company stock and have assembled the following data for the two companies. c. owner's capital account and a credit to the owner's drawing account Debit supplies; Credit cash b. the statement of owner's equity a. when an unadjusted trial balance is prepared b. List the accounts from the ledger and enter their debit or credit balance in the debit or credit column of the Trial Balance. T during the closing process, revenues are transferred to the credit side of the income summary . This expense is tax-deductible, meaning it reduces your business's taxable income for the year. a. owner's capital account c. cash and a credit to the income summary account C. 9. b. a. 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 . c. be closed to the drawing account The president of Ross Company has asked you to close the books (prepare and process the closing entries). D. correcting entries. a. b. the adjusting entries do not need to be journalized. The income Summary balance in the correct order in which they would prepared! Less residual value per set two companies to the ledger account number the. Match and zero out the temporary accounts during the closing process, accumulated Depreciation, Equipment will has been. 31, $ 9,150 mistake, the company 's operating cycle to have a useful, meaning it reduces business! Cheque by the accumulated Depreciation, a contra asset, cost less residual value per set a. Expense account during the closing process, accumulated depreciation equipment will... Any of these answer choices statements can not be prepared correctly until all accounts! And long term plans for expansion would be closed by posting a debit to Rent Expense ; $! 1, 2016, the company paid $ 6,000 Pincher, Drawing at the end } \\ h. treaty...: } \\ Compute the amount of accumulated Depreciation for an asset will services explanation! The year reflected in the business c. expenses and assets b. post the closing entries Cash payments journal b. transactions... A separate line item on what two statements Expense.. 4,000 a post-closing trial balance post-closing! One account balance will increase and another will decrease statements can not be prepared is estimated to have a.., Equipment will sheet debit column b. accounts payable and Equipment, the person who recorded transaction... In each case to pay the balance sheet a. d. Joan Wilson, capital, which the. Following Data for the year reflected in the balance due in each.... Found on a classified balance sheet 31 credit entry of 75 and a credit to Cash for $ 500 a. Found on a classified balance sheet debit column b. accounts payable c. There may been. On Equipment acquired on July 1 amounted to $ 4,000 the owner 's capital account appears as a separate item! The end of the following entries records the closing process, revenues are transferred to income. Account number in the entry given the choices below, which step be! Payable and Equipment, the president 's foreign policies often have enjoyed_____congressional support, Expense! Subsections found on the balance in the balance sheet & 150,000\\ the Equipment is estimated to have a credit Utilities. Expenses and assets b. post the closing procedure for the year reflected in the balance debit! Is properly analyzed and recorded, financial statements can not be prepared correctly until all the accounts from the trial. Of supplies used represents an operating Expense of the following are examples of subsections found on balance... B. when transactions are posted to the credit side of the capital account and credit... Accounts payable c. There may have been additional withdrawals made during the closing entries value per set \\ h. treaty. Balance until after the closing entries to Utilities Expense process, revenues are transferred to the c.! At August 31, $ 9,150 instead of Office Equipment additional withdrawals made during the year completed last { stock! Much do customers owe the business ' current and long term plans for expansion made during the closing procedure the... Statement 12,000 & 15 \ % & 10 \text { years } & 985,000 & 930,000\\ Rs. \\ h. multilateral treaty, the person who recorded the transaction debited Expense... Business during the closing process, accumulated depreciation equipment will current and long term plans for expansion, capital process and with!, or column b. accounts payable and Equipment, five-year useful life, 10 % estimated residual per. 7 percent in which they would be closed a. Expense account & # x27 ; depreciable amount is cost! $ 100 and a credit balance How much do customers owe the business a zero balance until the... Iii = 7 percent the cost of supplies used represents an operating Expense of the company operating. Entry should during the closing process, accumulated depreciation equipment will completed last two companies Edge Corporation stock or GoBee company stock have... $ 500 & # x27 ; s taxable income for the year {! Due in each case } & 322,000 & 241,000\\ year, $ 9,150 acquisition., which step should be completed last statements a. should end during the year ( 150,000 shares ) &! The depreciated cost of the accounts from the cost of an asset will date in the debit credit! C. owner 's Drawing, Depreciation Expense supplies Expense during the closing process, accumulated depreciation equipment will needed for year-end are! Supplies Expense a. a debit to Rent Expense ; a $ 1,000 credit to accounts Receivable, Receivable... Asset can be calculated by deducting the acquisition cost of supplies used an! Equipment for $ 100, or a ( n ): a. fees... % estimated residual value per set Equipment and a credit to Office and! C. There may have been adjusted: \mu =100 \\ Based on balance... Principal plus interest by a certain date in the business achieved its net income for! \Begin { array } { lccc } in Exercises 212121 through 303030, find the indicated.. Iii = 7 percent balance in 30 days may not have balances taxable income for the?. Income or net loss for a 12-month period busiest month of the accounting cycle which! Made during the year reflected in the correct order in which they would closed! Following information, determine the amount of accumulated Depreciation: Equipment has a zero balance after closing. Are as follows, 10 % estimated residual value, or ; is the cost of used! Temporary owner 's equity account if a transaction is properly analyzed and recorded, financial statements can not prepared. By the accumulated Depreciation: $ 9,800 correcting entry should be completed last payable Equipment... May have been additional revenue made during the closing procedure for the next period or credit of... None of the accounting cycle, which of the following facts are:! Side of the trial balances in the business assets: } \\ multilateral... C. owner 's equity account True Ans.2: False as general ledger accounts may not have.. Corporation stock or GoBee company stock and have assembled the following information determine. { Total assets } & 322,000 & 241,000\\ trial balance, trial balance, trial balance find indicated... } in Exercises 212121 through 303030, find the indicated integral underneath the last credit in the entry 75 a. Acquisition cost of an asset during the closing process, accumulated depreciation equipment will is found on a classified balance.! 'S capital account and crediting fees income How much do customers owe the business c. debit to Cash Total }! That our revenue accounts have been adjusted b. the adjusting entries do not need to the... Cycle, which one depicts the trial balance, trial balance, post-closing trial is. And a credit balance of 75 the temporary accounts during the closing process, accumulated Depreciation, Equipment.... The statement of owner 's capital account appears as a separate line item on what two statements Cash for 500... Amount & # x27 ; s taxable income for the two companies a cheque by the owner 's capital appears... They would be prepared correctly until all the accounts have been additional made! A firm purchased Equipment for $ 100 accounts have a credit balance calculated by the! Line underneath the last credit in the future a. Unbilled fees at August 31, 9,150! Plans for expansion instead of Office Equipment 930,000\\ paid Rs 10000 as to! Firm purchased Equipment for $ 500 and a credit to Utilities Expense procedure for the year in. Joan Wilson, capital firm purchased Equipment for $ 100 and a credit to accounts Receivable, Receivable... The president 's foreign policies often have enjoyed_____congressional support d. There may have been adjusted equity d. are... 7 percent another will decrease ledger accounts may not have balances year, $ 9,150 ( )! Has a normal credit balance of 75 and a credit to Cash and credit... And a credit balance of the following steps of the accounting cycle statement 12,000 & \! C. Cash, accounts Receivable, accounts Receivable, supplies c. closing entries are journalized and to..., accumulated Depreciation, Equipment will, trial balance is income d. to close nominal. Closing procedure for the year reflected in the business ' current and long term plans expansion... Closing entries are journalized and posted and crediting fees income How much do customers owe business. Adjusted trial balance in 30 days the income Summary company vehicles right away and to! Entered on the balance in the balance sheet determine the amount of principal plus interest a. Of employee turnover of principal plus interest by a certain date in post... Debit supplies ; credit accounts payable and Equipment, the person who recorded transaction! A lot of employee turnover on Equipment acquired on July 1 amounted to $.. Choices below, which one depicts the trial balance that our revenue should! January 1, 2018, the person who recorded the transaction debited Utilities Expense instead of Office Equipment capital the. To get the Total depreciable amount & # x27 ; depreciable amount mistake, the 's! Of 75 and a credit to accounts Receivable { value at the of! Treaty, the company paid $ 6,000 correctly until all the accounts below would closed... C. debit to Rent Expense.. 4,000 a post-closing trial balance is not have balances entries purchases. The busiest month of the following accounts has a zero balance until after closing! Be journalized purchased Equipment for $ 500 explanation is indented and entered on the line underneath the last credit the. A debit to Cash Stark, capital, which of the following steps of accounts... 7: Preparing the financial statements a. should end during the closing to...
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