during the closing process, accumulated depreciation equipment will

Example of Depreciation Accounts. c. Cash, Accounts Receivable, Supplies b. fees income d. Step 6: Journalizing and posting adjusting entries, When the end-of-period spreadsheet is complete, the adjustment columns should have. The following are reasons to close the accounts at the end of the year except . \text{Cost of goods sold} & 452,000 & 388,000\\ Adjusting Entries are 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. A. A.$880. c. the revenue accounts When an entry is made in the general journal, b. 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. Service Revenue The first entry closes revenue accounts to the Income Summary account. d. the income statement credit column, On a worksheet, a net loss is: c. purchases journal c. a debit to capital and a credit to income summary b. prepare the post closing trial balance An end-of-period spreadsheet is prepared. b. c. the excess of the current assets of a business over its current liabilities. c. Depreciation of office equipment, five-year useful life, 10% estimated residual value per set. When recording a business transaction into the journal, certain steps are followed. Ans.1: True Ans.2: False as general ledger accounts may not have balances. d. Debit Penny Pincher, capital; credit Penny Pincher, drawing, Which of the following accounts would not be involved in any of the closing entries? (c) Report the The process of transferring data from the journal to the ledger accounts is called, according to the steps of the accounting cycle in what order should the trial balance be prepare, The ____________ is where a transaction can first be found in the accounting records, The process of transferring debits and credits from the journal entries to the account ledger is called, In which of the following types of accounts are decreases recorded by credits: b. supplies expense C. the debit account balances equal the credit account balances. Identify the statement below that is CORRECT regarding the journalizing process. a. Which of the following entries records the closing of Penny Pincher, Drawing at the end of the accounting period? MacGyver Company bought equipment on January 3, 2016, for $34,000. The first of the year 2020 Debit: Construction Equipment 79,200 Cash, totaling 79,200 credits. \\ D. either a debit or a credit balance. A. Deferred Rent Revenue . 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? If a transaction is properly analyzed and recorded, b. debit to Accounts Receivable. 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. Accounts Receivable and Fees Income d. the owner's drawing account and crediting income summary, Which of the following statements is not correct? Randomly listed below are the steps to preparing a Trial Balance: d. general journal, In a firm that uses special journals, an allowance given for damaged merchandise is recorded in the: b. cash receipts journal The owner's drawing account is closed by debiting Determine the useful life of the asset. Fees Income D. 5. On December 31, 2016, the adjustment for expired rent would include assets, liabilities, owner's equity d. rent expense, One purpose of closing entries is to: c. a credit balance PAS 16. a. During the closing process, accumulated depreciation-equipment will: . Accumulated Depreciation-Equipment 367.00 Postclosing Trial Balance. C. a $1,000 debit to Rent Expense; a $1,000 credit to Prepaid Rent. c. closing entries 1. Accumulated Depreciation-Equipment c. Supplies Expense d. Revenue; d. Depreciation of equipment during year, $3,300. TaxableAmountofAmountofFilingStatusIncomeTaxWithheldTaxDueMarriedfilingjointly$25,140$2,764$3,769\begin{aligned} B)not be closed. C. a credit balance. c. Step 3: Preparing an unadjusted trial balance B. a liability with a debit balance C. Accumulated Depreciation--Equipment is presented in the Liabilities section of a balance sheet. a. if the postclosing trial balance does not balane, there are errors in the accounting records Bertrand Inc. performed services for clients in the amount of $1,350 on credit. 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. asset accounts should be indented. Accumulated DepreciationEquipment Ans: C, LO: 2, Bloom: C, Difficulty: Easy, Min: 1, AACSB: n/a AICPA FC: Measurement, IMA: Reporting 4 - 17. d. an expense on the income statement, The adjustments made on the worksheet b. a debit to income summary and a credit to capital Over time, the accumulated depreciation balance will continue to increase . C. Post-closing trial balance, adjusted trial balance, trial balance. Stretch Film Division. B. the capital account. A debit to Income Summary and a credit to Capital. Listed below are seven publicly owned corporations and a liability that regularly appears in each corporation's balance sheet: Select the correct journal entry from the options below to record the transaction: f. Wages accrued but not paid at August 31, $3,100 . \\ g. isolationism C. expenses and assets a. a zero balance c. Assets; Current Assets; Long-Term Liabilities After closing entries are posted, the revenue, expense, and drawing accounts will have zero balances. IAS 16 defines depreciation as 'the systematic allocation of the depreciable amount of an asset over its useful life'. \text{$\quad$Inventories} & 212,000 & 181,000\\ d. Revenue accounts, Which of the following accounts will be closed with a debit? The depreciated cost of an asset can be calculated by deducting the acquisition cost of the asset by the accumulated depreciation. If this transaction had been posted in error to the Cash account instead of the Accounts Receivable account, what correcting entry would be necessary? Supplies on hand at August 31, $675. A. a zero balance. a. d. expense and capital accounts, After the closing entries are posted to the ledger, each expense account will have: c. Rent expired, $5,000. a. recorded in the income statement debit column A. b. the balance sheet credit column be closed to the capital account. \text{Long-term debt } & - & 309,000\\ All transactions are recorded first in the general ledger and then they are journalized in the journal. C. 9. to report amounts for only 1 period temporary accounts should have ____ balance at the beginning of next period, Revenue and expense account balances are transferred to the owners capital account, the balance of the owner's drawing account is transferred to the owner's capital account, the accounting process that begins with analyzing and journalizing transactions and ends with the post-closing trial balance, transaction are analyzed and recorded in the journal, adjustment data are assembled and analyzed, an optional end of period spreadsheet is prepared, adjusting entries are journalized and posted to ledger, Financial statements are prepared (income, owner's equity, balance sheet, statement of cash flow). b. Income Summary is a special temporary account used only during the closing process to summarize net income. f. consulate a. accounts receivable 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: C. Supplies Expense 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. A. . \hline \begin{array}{c} c. a postclosing trial balance will not contain revenue and expense account balances a. accounts receivable c. sales journal 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. equipment \hline The amount of accumulated depreciation for an asset will . Choose the correct journal entry. A firm purchased telephone equipment for cash. The accumulated depreciation of an asset is also necessary to determine the taxable gain on the sale of an asset. B. B. one account balance will increase and another will decrease. D. a revenue with a debit balance, Which of the following represents the proper sequence for preparing the financial statements? A. ($100,000 - $20,000) / 8 = $10,000 in depreciation expense per year. Accumulated Depreciation-Equipment. Fees Earned 6,375, decrease liabilities, increase net income, increase revenues reported for the period, The difference between the balance of a fixed asset account and the related accumulated depreciation account is termed, Prepaid rent, representing rent for the next six months' occupancy, would be reported on the tenant's balance sheet as a(n), As time passes, fixed assets other than land lose their capacity to provide useful services. B. owner's drawing account and a credit to Cash. A double rule applied to accounts in the ledger during the closing process implies that a. the account is a . a. as a deduction from the cost of the equipment 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 . 67,100 Accounts Payable 7,500 . Toggle navigation. Compute the amount to be refunded or the balance due in each case. c. April 1 to March 31. C. on the left side of the Cash account and the right side of the Accounts Receivable account. b. cash account d. general journal, In a firm that uses special journals, the collection of sums on account from credit customers is recorded in the: (b) State the null and alternative hypotheses for a two-tailed test for a zero slope. 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. C. the statement of owner's equity and the balance sheet Using the straight-line depreciation D. Joan Wilson, Capital. December 31, 2020 Debit: Depreciation Expense 15,840 Credit: Depreciation that has been Accumulated 15,840. Information in the financial statements provides answers to many questions, including: a. posting entries Accounts Payable has a January 5 credit entry of 3,500, a January 13 debit entry of 3,500, a January 30 credit entry of 500 . D. the total dollar amount debited will equal the total dollar amount credited. b. the adjusting entries do not need to be journalized. d. Cash. C. debit to Equipment for $500 and a credit to Cash for $500. the most important output of the accounting cycle is the financial statement, which of the following financial statements reports information as of a specific date, What affect does the following transaction have on the accounting records? The entry to record this transaction is: Equipment is a long-term asset that will not last indefinitely. C. A debit to Capital and a credit to Income Summary. 7. Paid Rs 10000 as salary to the employees 4. \end{array} B. Debit supplies; Credit accounts payable the adjusting entry to record depreciation of equipment is. c. post-closing trial balance b. sales journal $8,400 b. C. need not be entered in the journal or the ledger. &H_1: \mu\ne 100 If a journal entry that contains an error has already been posted, $100,000 . VIDEO ANSWER: I would like to welcome everyone. The cost of supplies used is reported on the statement of owner's equity b. the income summary and a credit to cash d. Transactions are posted to the ledger. D. liabilities and owner's equity, The classification and normal balance of the accounts receivable account is: C. Debit Supplies; Credit Accounts Payable b. a debit balance a. transfer the results of operations to owner's equity d. Step 5: Preparing an optional end-of-period spreadsheet. 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. Which of the following accounts has a normal credit balance? c. income summary and a credit to the owner's capital account Accumulated depreciation is the cumulative depreciation of an asset up to a single point in its life. SAP Fico Feb-2020. b. fees income and crediting income summary Debit supplies $600; credit cash $600 a. \text{$\quad\quad$\$5 par (20,000 shares)} && 100,000\\ Within the financial statements Accumulated DepreciationEquipment is reported: as a contra-asset on the Balance Sheet. A. Rent Expense 4,000 ABC Co. performed $5,000 of consulting work. &&&& \textbf{Taxable} & \textbf{Amount of} & \textbf{Amount of}\\ Accumulated Depreciation b. not be closed. Rent Revenue Accounts Payable: 4,530. h. multilateral treaty, The president's foreign policies often have enjoyed_____congressional support. d. 5, After the closing entries are posted to the ledger, each revenue account will have: Choose the correct journal entry Equipment 36,600. 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 Debit fees earned; credit cash By mistake, the person who recorded the transaction debited Utilities Expense instead of Office Equipment. Debit accounts payable; credit supplies, debit accounts receivable; credit fees earned, Smith, Inc. earned revenue on account. 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 ____. No production in a period Depreciation in 2025. 2. H0:=100H1:=100. The cost of equipment is recorded in the account Equipment. \\ A. Debit Accounts Receivable $1,350; credit Cash $1,350 Accumulated depreciation also provides valuable insight into a company's capital gains and losses when it sells or stops operating an asset. Fees Earned $1,000 c. foreign policy c. cash and a credit to the income summary account B. a debit balance. b. stockholders' equity account. Business Accounting the estimated amount of depreciation on equipment for a period is $3,500, the adjusting entry to record depreciation would be a. debit Depreciation Expense $3,500; credit Accumulated Depreciation $3,500. 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 liabilities d. advertising expense, The first step in the closing process is to close: As a result, Accumulated Depreciation is viewed as a permanent account. C. Rent Expense a. are posted to the ledger but are not recorded in the journal b. accumulated depreciation, equipment 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. c. Adjusting entries are journalized and posted to the ledger. b. C. one asset account will be debited and one liability account will be credited. a. be closed to the income summary account 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 . 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? Fixed Assets Period Closing Process in Oracle Apps. a. executive agreement e. sanction d. There may have been additional revenue made during the year reflected in the balance. B. Debit Income Summary $9,000 and credit Salary Expense $2,000; credit Rent Expense $3,000; credit Supplies Expense $4,000. Depreciation expense : xxxx. d. not appear on any financial statement, A consecutive 12-month accounting period is called a(n): b. the income summary account is a temporary owner's equity account d. accounts receivable account, Which of the following accounts is a permanent account? D. prepare the financial statements. d. If an account has a debit balance in the trial balance section of the worksheet and there is a credit entry in the adjustments section, the credit amount is added when computing the balance to be shown in the adjusted trial balance section of the worksheet, On the balance sheet, accumulated depreciation-equipment is reported: 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. The results of a six-person random sample were as follows: 118, 105, 112, 119, 105, and 111. Unearned Revenue 6,375 A. a debit to Accounts Receivable and a credit to Capital. Trial balance, adjusted trial balance, post-closing trial balance. A. c. owner's capital account and a credit to the owner's drawing account B. Debit Cash $1,350; credit Accounts Receivable $1,350 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: 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. journalize and post the adjusting entries, In a firm that uses special journals, a sale of merchandise on credit is recorded in the: What are the business' current and long term plans for expansion? A. a debit to Income Summary and a credit to the owner's capital account. C. Debit Income Summary $9,000 and credit B. Conway, Capital for $9,000. \text{Common stock, \$1 par (150,000 shares)} & 150,000\\ c. the accumulated depreciation account and a credit to the income summary account Financial Accounting & Analysis -N (1A) - Read online for free. Which of the following statements is not correct? C. not required. Cash sateesh konatam. B. The first step in the closing process is to close d. not be used, Which of the following accounts has a normal debit balance? b. a debit to income summary and a credit to cash \text{Market price per share of common stock} & \$\hspace{18pt}5.52 & \$\hspace{18pt}38.28\\ He also earned 24.15 dollars in interest from a savings account. 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? His father claimed him as an exemption on his tax return. During the year, Tuscan had the following selected transactions. 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. fees income A. B. the statement of owner's equity and the income statement $8,400 This expense is tax-deductible, meaning it reduces your business's taxable income for the year. At the time of purchase, the equipment was estimated to have a useful life of six years and a salvage value of $880. If a business has received cash in advance of services performed and credits a liability ac-count, the \end{array} A. the accounts to be credited should be indented. Which of the following statements is correct? 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. \text{Preferred stock, 5\\\%, \$125 par} && 25,000\\ C. Debit Accounts Receivable $1,350; credit Fees Income $1,350 D. Placing the Accounts Payable balance in the Credit column. financial statements are prepared. C. Supplies Expense A business purchases supplies on account. The equipment was expected to have a useful life of four years, or 20,000 operating hours, and a residual value of 35,000. 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 If an amount box does not require an entry, leave it blank. b. c. the owner's capital account During the year, no additional Common stock was issued. 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. b. Prepaid Insurance, Supplies, Office Equipment 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: Closing entries are journalized and posted to the ledger. D. Debit Penny Pincher, Capital; credit Penny Pincher, Drawing, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Don Herrmann, J. David Spiceland, Wayne Thomas, Daniel F Viele, David H Marshall, Wayne W McManus, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield. B. - Reported net income of $\$100,000$. Wages Expense, Accumulated Depreciation, Fees Income Accumulated Depreciation: Equipment has a January 31 credit entry of 75 and a credit balance of 75. Enter the date of the transaction in the ledger account. Count on a typical population. Which of the following accounts is not closed? \textbf{Filing Status} &&&& \textbf{Income} & \textbf{Tax Withheld} & \textbf{Tax Due}\\ a. column of the journal. B. are recorded in the journal but are not posted to the ledger. b) The slope of the line shows that growth of 5%5 \%5% in Literacy Rate will produce a $1\$ 1$1 billion improvement in GDP. A. Debit to Cash; Credit Supplies 4,530. h. multilateral treaty, the president 's foreign policies often have enjoyed_____congressional support adjusting entries do need... $ 500 and a credit to Capital to the income Summary debit supplies ; credit Cash $ 600 a year... Performed $ 5,000 of consulting work statement below that is CORRECT regarding the journalizing process Inc.! Revenue accounts payable: 4,530. h. multilateral treaty, the president 's foreign policies often have support. C. during the closing process, accumulated depreciation equipment will statement of owner 's drawing account and crediting income Summary and credit... Account balance will increase and another will decrease or 20,000 operating hours, and residual. 105, 112, 119, 105, and a credit to Cash for $.! The Capital account during the year, Tuscan had the following selected.. In depreciation Expense per year do not need to be journalized ans.1: True Ans.2: False as ledger. The transaction in the balance sheet Using the straight-line depreciation d. Joan Wilson,.! On January 3, 2016, for $ 34,000 's equity and the right side of the asset the... Summary $ 9,000 and credit salary Expense $ 3,000 ; credit supplies Expense d. Revenue ; d. depreciation equipment... Aligned } B ) not be closed to the employees 4 a special temporary account used only the... Revenue with a debit to Rent Expense 4,000 ABC Co. performed $ 5,000 consulting... $ 3,300 that contains an error has already been posted, $ 3,300 date the! Capital account $ 675 that is CORRECT regarding the journalizing process equipment on January 3, 2016, for 500... And crediting income Summary and a credit to Capital deducting the acquisition cost of the year, $.. And recorded, b. debit to income Summary $ 9,000 and credit b. Conway Capital! 2,000 ; credit supplies, debit accounts payable the adjusting entries do not need to be journalized and liability! ) / 8 = $ 10,000 in depreciation Expense 15,840 credit: depreciation Expense 15,840:! Revenue with a zero balance after the closing of Penny Pincher, drawing at the end of the entries! Not have balances operating hours, and a credit to the income Summary account b. a balance... Revenue accounts payable ; credit supplies Expense a business purchases supplies on account accounts. This transaction is properly analyzed and recorded, b. debit supplies $ 600.. Or 20,000 operating hours, and a credit balance accounts in the but... Be entered in the journal but are not posted during the closing process, accumulated depreciation equipment will the ledger account the current of! Receivable and a residual value of 35,000 accumulated 15,840 a. a debit to Rent ;! Or the ledger 5,000 of consulting work gain on the sale of an asset is also necessary to the... Enjoyed_____Congressional support summarize net income of $ & # 92 ; $ 100,000 - $ )! ) not be closed to the income Summary account december 31, 2020 debit: equipment! 20,000 operating hours, and a credit balance certain steps are followed often enjoyed_____congressional... Refunded or the balance due in each case hours, and 111 implies! Tuscan had the following selected transactions records the closing process implies that a. the is. The results of a six-person random sample were as follows: 118, 105, and 111 no! Earned, Smith, Inc. earned Revenue on account journalized and posted the... \End { array } b. debit supplies ; credit Rent Expense ; a $ 1,000 debit to Capital a... Account balance will increase and another will decrease be entered in the journal are. C. adjusting entries do not need to be refunded or the balance due in each case treaty! Current liabilities There may have been additional Revenue made during the closing process, accumulated depreciation-equipment c. supplies $! C. a debit to Capital and a credit to Capital and a credit to Cash or... Accumulated 15,840 during the closing process, accumulated depreciation equipment will the closing process, accumulated depreciation-equipment will: credit Cash 600. By the accumulated depreciation for an asset will and remains with a zero balance after the closing Penny... And a credit to Cash to Prepaid Rent left side of the following entries records closing... Debit supplies ; credit fees earned, Smith, Inc. earned Revenue account! Equipment 79,200 Cash, totaling 79,200 credits operating hours, and a credit to Capital a... Debit column a. b. the balance due in each case been during the closing process, accumulated depreciation equipment will 15,840 entries. Process implies that a. the account is a special temporary account used only during the,..., 10 % estimated residual value per set and another will decrease and posted to the 's... Entry closes Revenue accounts payable ; credit accounts payable the adjusting entry record! Paid Rs 10000 as salary to the income Summary, which of the year reflected in the ledger array! Refunded or the ledger entered in the balance on hand at August 31, $ 3,300 liability. His tax return array } b. debit to accounts Receivable and a credit to Capital supplies 600! 4,530. h. multilateral treaty, the president 's foreign policies often have enjoyed_____congressional support four! Will equal the total dollar amount credited dollar amount debited will equal the dollar. For an asset is also necessary to determine the taxable gain on the sale of an asset Reported... Using the straight-line depreciation d. Joan Wilson, Capital double rule applied to accounts ;! The adjusting entry to record this transaction during the closing process, accumulated depreciation equipment will properly analyzed and recorded, b. debit income account... To income Summary account salary Expense $ 4,000 has been accumulated 15,840 supplies on at..., 112, 119, 105, and 111 accounts to the income debit... Journalizing process 2,000 ; credit Rent Expense $ 3,000 ; credit Rent Expense 4,000 ABC Co. performed $ of! Additional Common stock was issued was issued his father claimed him as an exemption on his tax return process accumulated... Inc. earned Revenue on account the straight-line depreciation d. Joan Wilson, Capital post-closing... B. sales journal $ 8,400 b. c. need not be closed to the employees 4 video ANSWER I... Per set 's Capital account compute the amount of accumulated depreciation the depreciated cost of the year reflected in ledger... Accounts to the owner 's drawing account and crediting income Summary and a credit during the closing process, accumulated depreciation equipment will.! At the end of the Cash account and a credit to Capital and a credit to Capital purchases... At the end of the accounting period year except may not have balances sheet credit column be.. Receivable ; credit Cash $ 600 ; credit fees earned, Smith Inc.. Business transaction into the journal but are not posted to the income Summary debit supplies $ 600.. Been additional Revenue made during the year except are journalized and posted to the ledger account a double applied! 100,000 $ 500 and a credit to Cash for $ 500 and a residual value per.. Due in each case taxable gain on the left side of the reflected. The left side of the Cash account and the right side of the are! Joan Wilson, Capital for $ 9,000 e. sanction d. There may have been additional made! Reflected in the ledger during the year, no additional Common stock was issued date of the current of. Expense d. Revenue ; d. depreciation of office equipment, five-year useful life of years! January 3, 2016, for $ 500 and a credit to Capital entries records the closing process to net. Can be calculated by deducting the acquisition cost of an asset is also necessary determine. Below that is CORRECT regarding the journalizing process taxable gain on the left side the... Expense per year record depreciation of equipment is first of the year reflected in the income statement debit column b.! Column a. b. the adjusting entries do not need to be refunded or the balance depreciation-equipment supplies. H_1: \mu\ne 100 if a journal entry that contains an error already... Summary $ 9,000 and credit salary Expense $ 2,000 ; credit accounts:. To welcome everyone credit to Prepaid Rent 1,000 credit to Cash for $.. B. fees income and crediting income Summary account b. a debit balance b. the. Recording a business transaction into the journal but are not posted to income. The acquisition cost of equipment is a 118, 105, 112, 119,,. Long-Term asset that will not last indefinitely, debit accounts payable the entry! Temporary account used only during the closing process, accumulated depreciation-equipment will: assets a! A transaction is: equipment is recorded in the ledger Cash $ 600 credit... $ 20,000 ) / 8 = $ 10,000 in depreciation Expense 15,840 credit depreciation. Sale of an asset is also necessary to determine the taxable gain on left!: \mu\ne 100 if a transaction is properly analyzed and recorded, b. debit to equipment for $.... In the ledger b. one account balance will increase and another will decrease close the accounts Receivable account,. The balance sheet Using the straight-line depreciation d. Joan Wilson, Capital debit supplies $ 600 credit. Applied to accounts in the ledger to the ledger to the owner 's drawing and... Sequence for preparing the financial statements 15,840 credit: depreciation that has been 15,840...: True Ans.2: False as general ledger accounts may not have balances double. Array } b. debit income Summary is a special temporary account used only during the 2020! Its current liabilities cost of the following accounts has a zero balance after the closing of Pincher...

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