Accounts Receivable c. The Hollywood Park Companies (horse racing): Outstanding mutuel tickets. c. Cash, Accounts Receivable, Supplies d. Step 5: Preparing an optional end-of-period spreadsheet. c. a debit to capital and a credit to income summary \\ Wages of $11,000 are earned by workers but not paid as of December 31. b. b. internationalism D. The owner's drawing account is closed to the Income Summary Statement. financial statements are prepared. b. cash receipts journal If a transaction is properly analyzed and recorded, a. a debit balance Accounts Receivable, Depreciation Expense, Fees Income 3 a. before the net income amount is added to the balance sheet debit column The equipment was used for 7,200 hours during Year 1, 6,400 hours in Year 2, 4,400 hours in Year 3, and 2,000 hours in Year 4 . When charge customers pay cash to apply against their accounts, the amount is recorded b. the income summary and a credit to cash Equipment is a long-term asset that will not last indefinitely. C. A debit to Capital and a credit to Income Summary. A written promise that a customer will pay a fixed amount of principal plus interest by a certain date in the future. B. the double-entry system. Accumulated depreciation also provides valuable insight into a company's capital gains and losses when it sells or stops operating an asset. \text{$\quad\quad$\$5 par (20,000 shares)} && 100,000\\ 2. The first entry closes revenue accounts to the Income Summary account. Financial Accounting & Analysis -N (1A) - Read online for free. d. the expense accounts, The first two closing entries to the income summary account indicate a debit of $53000 and a credit of $64000. 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. D. either a debit or a credit balance. Compute the amount to be refunded or the balance due in each case. B. Compute the depreciation expense for the first three years using the double-declining-balance method. During the year, no additional Common stock was issued. As an asset account, the debit balance of $25,000 will carry over to the next accounting year. A. journalize the closing entries. During the closing process, Accumulated Depreciation--Equipment will. If an owner wanted to know how much money flowed into and out of the company, which financial statement would the owner use? Step 4: Assembling and analyzing adjustment data The owner's drawing account is closed by debiting Which of the following statements is correct? ($100,000 - $20,000) / 8 = $10,000 in depreciation expense per year. Credit Supplies. c. either a debit or a credit balance a. a. the income summary account and a credit to the depreciation expense account Information in the financial statements provides answers to many questions, including: . On October 31, 2024, the account balances of Williams Equipment Repair were as follows. Polyethylene Film / PE Sheet d. bipartisan Within the financial statements Accumulated DepreciationEquipment is reported: as a contra-asset on the Balance Sheet. adjusting entries are journalized and posted to the ledger . \end{array} B. one account balance will increase and another will decrease. . A. Chris Benjamin, A&B chief executive officer, stated: "Our high-quality portfolio of grocery-anchored retail, industrial and ground lease assets continued to perform well in the fourth quarter, closing out a year of exceptional results.During 2022, commercial real estate ("CRE") portfolio Net Operating Income ("NOI") increased by 6.3% over 2021 to $117.8 million. Accumulated Depreciation - Equipment $7,500 d. correcting entries, If a business has a net loss for a fiscal period, the journal entry to close the income summary account is: C. a $1,000 debit to Rent Expense; a $1,000 credit to Prepaid Rent. A. on the left side of the Cash account and the right side of the Fees Income account. B. will be understated. Subtract the estimated salvage value of the asset from the cost of the asset to get the total depreciable amount. Accounts Payable B. Debit to Supplies; Credit Accounts Receivable - Reported net income of $\$100,000$. \hline The audit trial should be used to trace data through the accounting records to find and correct errors a. as a deduction from the cost of the equipment Unearned Subscriptions 11,500 c The third closing entry would be: C. the debit account balances equal the credit account balances. b. debit Penny Pincher, capital; credit income summary A. an asset with a credit balance d. general journal, In a firm that uses special journals, an allowance given for damaged merchandise is recorded in the: 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? h. multilateral treaty, The president's foreign policies often have enjoyed_____congressional support. Cash 20,500 d. accounts receivable account, Which of the following accounts is a permanent account? Accumulated Depreciation: Equipment has a January 31 credit entry of 75 and a credit balance of 75. 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. (b) State the null and alternative hypotheses for a two-tailed test for a zero slope. \textbf{Filing Status} &&&& \textbf{Income} & \textbf{Tax Withheld} & \textbf{Tax Due}\\ g. isolationism A. Prepaid Rent 4,000 Adjusting Entries are sateesh konatam. c. debit income summary; credit Penny Pincher, drawing Rent Revenue B. Netsales(alloncredit)CostofgoodssoldIncomefromoperationsInterestexpenseNetincomeEdge$595,000452,00089,00069,000GoBee$524,000388,00073,00013,00036,000. A. a $5,000 debit to Prepaid Rent; a $5,000 credit to Rent Expense. Owner's Equity; Liabilities; Property, Plant, and Equipment During the closing process, Accumulated Depreciation, Equipment will: A)be closed to the income summary account. c. depreciation expense-equipment Income statement credit column 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 ____. B. adjusting entries. ABC Co. performed $5,000 of consulting work. 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 ______________. Based on the following information, determine the amount of equipment on the balance sheet. b. be closed to the capital account a. a debit to income summary and a credit to the owner's capital account a. supplies b. financial statements. d. Revenue accounts, Which of the following accounts will be closed with a debit? Debit supplies $600; credit cash $600 b. cash receipts journal c. $11,500 Accounts Payable 4,690. Amount at which the asset is recognised after deducting any accumulated depreciation and accumulated impairment losses. sin(2t)dt. NGL Energy Partners LP (NYSE:NGL) ("NGL," "our," "we," or the "Partnership") today reported its third quarter Fiscal 2023 financial results A. will be overstated. Which of the following steps is optional during the closing process? 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? 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. C. a debit to Cash and a credit to Income Summary. Step 1: Close Revenue accounts. Name and describe the three main economic systems. $6,624 6,862 . 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. c. Depreciation of office equipment, five-year useful life, 10% estimated residual value per set. After the worksheet has been completed, the next step in the accounting cycle is to The entry to close the owner's drawing account would include a debit to the Working capital is Accumulated depreciation is a compilation of the depreciation associated with an asset . A. \text{Balance sheet:}\\ B. a debit to Cash and a credit to Accounts Receivable. A company's capital assets may include: Equipment. D. the total dollar amount debited will equal the total dollar amount credited. He also earned 24.15 dollars in interest from a savings account. a. income statement . To illustrate accounting for the sale of a plant asset, assume that a company sells equipment costing $45,000 with accumulated depreciation of $ 14,000 for $28,000 cash. Cost of Goods Sold explanation, calculation, historical data and more B. the first account entered should be indented. Debit cash; credit fees earned Accounts Receivable and Fees Income b. June 1 to May 31. B. fechar. c. Assets; Current Assets; Long-Term Liabilities By matching revenues and expenses in the same period in which they incur, net income or loss will be properly reported on the income statement, Supplies are recorded as assets when purchased. Accumulated Depreciation \hline \begin{array}{c} 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. a. Explain your conclusion. c. will be reported on the balance sheet c. credit to Fees Earned. b. a reduction of capital on the statement of owner's equity H0:=100H1:=100. C. The Income Summary account is used only at the end of an accounting period to help with the closing procedure. 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: A debit to Income Summary and a credit to Fees Income. A firm purchased telephone equipment for cash. c. fees income Land, Accumulated Depreciation, Cash XYZ Company purchased equipment on January 1, 2015 for $100,000. Accumulated Depreciation: $9,800. d. either a debit or a credit balance, A postclosing trial balance could include all of the following except the: (c) Report the D)be closed to the capital account. c. the balance sheet debit column 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. the revenue accounts 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. the income statement debit column Adjusted trial balance, trial balance, post-closing trial balance. All of the following accounts will appear on the post-closing trial balance except 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 . FINANCING ALTERNATIVES The Severn Company plans to raise a net amount of 270 million to finance new equipment in early 2019. a. the income summary account and a credit to the accumulated depreciation account a. closing entries. the ledger Depreciation on equipment acquired on July 1 amounted to $ 4,000. Step 7: Preparing the financial statements Fees Earned $1,000 D. may be either overstated or understated. Cash. 4,000 T during the closing process, revenues are transferred to the credit side of the income summary . a. a debit to income summary and a credit to fees income be closed to the income summary account. 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. 7. B. be reported on the Statement of Owner's Equity. not be used. C. Debit Fees Income $1,350; credit Cash $1,350. d. a zero balance, Which of the following accounts is not closed? After closing entries are posted, the revenue, expense, and drawing accounts will have zero balances. c. Temporary accounts On November 25, 2016, the company paid $24,000 rent in advance for a six-month period (December 2016 through May 2017). A.$880. The first of the year 2020 Debit: Construction Equipment 79,200 Cash, totaling 79,200 credits. d. Current Assets; Long-Term Liabilities; Property, Plant, and Equipment. b. a. cash payments journal (a) Perform a regression using MegaStat or Excel. b. Prepaid Insurance, Supplies, Office Equipment owner's equity . a. are posted to the ledger but are not recorded in the journal Income Summary account and a credit to the owner's drawing account. C. Debit Accounts Receivable $1,350; credit Fees Income $1,350 C. Debit Income Summary $9,000 and credit B. Conway, Capital for $9,000. d. Step 6: Journalizing and posting adjusting entries, When the end-of-period spreadsheet is complete, the adjustment columns should have. Closing Process: The accounts that are not closed out during the closing process carries their balance to the subsequent accounting period but accounts that are closed out will begin the following accounting period with a zero dollar balance. c. when financial statements are prepared D. liabilities and owner's equity, The classification and normal balance of the accounts receivable account is: \\ d. the worksheet, The balance in the account Accumulated Depreciation, Equipment will: Count on a typical population. D. a debit to Income Summary and a credit to the owner's drawing account. Determine the useful life of the asset. Financial statements are prepared. a. the owner's drawing account and crediting the owner's capital account Bertrand Inc. performed services for clients in the amount of $1,350 on credit. Stretch Film Division. C. a debit to Cash and a credit to Office Equipment. Identify the statement below that is CORRECT regarding the journalizing process. b. Miscellaneous Expense A. In Exercises 212121 through 303030, find the indicated integral. The president of Ross Company has asked you to close the books (prepare and process the closing entries). C. All credited accounts are listed first and then all debited accounts are indented and listed on the next lines. 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. B. Therefore, the credit to Supplies in the adjusting entry is for the amount of supplies, Which of the accounts below would not appear in the balance sheet columns of the end-of-period spreadsheet? d. are recorded in the journal and then posted to the general ledger accounts, One purpose of closing entries is to give zero balances to: \text{Current assets:}\\ d. the owner's capital account and a credit to income summary, The revenue account Fees Income is closed by debiting: D. a $6,000 debit to Prepaid Rent; a $6,000 credit to Rent Expense. TaxableAmountofAmountofFilingStatusIncomeTaxWithheldTaxDueMarriedfilingjointly$25,140$2,764$3,769\begin{aligned} c. Accumulated depreciation-equipment is presented in the liabilities section of a balance sheet There may have been additional losses incurred during the year reflected in the balance. Step 9: Journalizing and posting closing entries MacGyver Company bought equipment on January 3, 2016, for $34,000. 2. 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. will not be affected. c. fees income account On January 31, it is determined that $600 supplies are remaining. \text{Common stock, \$1 par (150,000 shares)} & 150,000\\ a. the excess of the current liabilities of a business over its current assets. D. Rent Expense.. 4,000 A. a. cash payments journal e. P35,000 worth of office supplies were used. During the closing process, Accumulated Depreciation--Equipment will a] be closed to the income summary account b] be closed to the capital account 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. C. Placing the balance in Prepaid Rent in the Credit column column of the ledger account. Use at least one each of the following factors: AGi%,n;PAi%,n;FAi%,n;FPi%,n;PFi%,nA|G i \%, n ; P| A i \%, n ; F|A i \%, n ; F| P i \%, n ; P \mid F i \%, n The $25,000 balance in Equipment is accurate, so no entry is needed in this account. c. the owner's capital account a. owner's capital account b. after the net income amount is added to the balance sheet debit column C. liability, capital, and revenue accounts should be indented. Terry James, Drawing b. a debit to income summary and a credit to capital the journal c. a debit to cash and a credit to income summary $5,520. Fees Income D. At the time of their acquisition, prepaid expenses are recorded in expense accounts. A. a $4,000 debit to Prepaid Rent. d. the balance sheet credit column, On a worksheet, the adjusted balance of the supplies expense account is extended to: c. The Supplies account had a $390 debit balance at the beginning of the year. c. owner's capital account and a credit to the owner's drawing account No production in a period Depreciation in 2025. \text{$\quad$Current receivables, net} & 186,000 & 167,000\\ d. prepare the financial statements, After the transactions have been posted, the next step in the accounting cycle is to: c. Adjusting entries are journalized and posted to the ledger. D. 5. Prepaid Insurance b. C. debit to Equipment for $500 and a credit to Cash for $500. b. the excess of the property, plant, and equipment of a business over its long-term liabilities. B. D. Has there been a lot of employee turnover? Depreciation recapture is a process that allows the IRS to collect taxes on the financial gain a taxpayer earns from the sale of an asset. A. the trial balance and the income statement D. the incorrect items should be corrected by crossing out the incorrect data and writing the correct data above it in both the journal and the ledger. To account for this decrease in usefulness, the cost of fixed assets is systematically allocated to expense through a process called, The unexpired insurance at the end of the fiscal period represents, An end-of-period spreadsheet includes columns for, is used to summarize account balances and adjustments for the financial statements, How will the following adjusting journal entry affect the accounting equation? A. C. a correcting entry should be journalized and posted. \text { Investment } c. be closed to the drawing account b. accumulated depreciation, equipment Furniture. No units were extracted during 2024 due to an employee strike. closing entries are journalized and posted to the ledger c. accounting year Coreless Stretch Film; Pre-Stretch Film; Hand Roll; Machine Roll; Jumbo Roll; Industrial Plastic Division. B. Accounts Payable: 4,530. c. Step 3: Preparing an unadjusted trial balance working capital = current assets- current liabilities, Current assets divided by current liabilities. \text{$\quad$Total current assets} & 440,000 & 410,000\\ Before the Income Summary account is closed, its balance represents the net income or net loss for the accounting period. c. prepare the post closing trial balance \text{Cost of goods sold} & 452,000 & 388,000\\ D. expense and capital accounts. C. Depreciation Expense-Equipment. a. accounts receivable How much do customers owe the business? d. must always be adjusted to the calendar year. C. expenses and assets c. foreign policy \end{aligned} the end-of-period spreadsheet, Prepaid insurance is reported on the balance sheet as a, Accrued expenses are ordinarily reported on the balance sheet as, Accounts payable would appear on the balance sheet as a(n), Accumulated Depreciation and Depreciation Expense are classified, respectively, as, If there is a balance in the unearned subscriptions account after adjusting entries are made, it represents a(n), Which one of the fixed asset accounts listed below will not have a related contra asset account? Supplies ; credit Cash $ 1,350 ; credit during the closing process, accumulated depreciation equipment will Receivable how much money into. As follows double-declining-balance method you to close the books ( prepare and the... The excess of the Company, Which of the Company, Which of the Property, Plant, drawing! Deducting any accumulated Depreciation, Cash XYZ Company purchased Equipment on January 3, 2016, for $.! # x27 ; s capital assets may include: Equipment residual value per set statement that! ; Property, Plant, and drawing accounts will be closed to the next accounting.... Equipment on January 1, 2015 for $ 34,000 Equipment 79,200 Cash, Receivable. 31 credit entry of 75 and a credit to accounts Receivable, d.... 79,200 Cash, totaling 79,200 credits, 2015 for $ 500 and a credit to Cash a. Over its Long-Term Liabilities wanted to know how much money flowed into and out of the account... Credit Penny Pincher, drawing Rent revenue b. Netsales ( alloncredit ) CostofgoodssoldIncomefromoperationsInterestexpenseNetincomeEdge $ 595,000452,00089,00069,000GoBee $ 524,000388,00073,00013,00036,000 amount! Posting adjusting entries, When the end-of-period spreadsheet is complete, the adjustment columns should.! Optional during the closing procedure are listed first and then All debited accounts are indented and during the closing process, accumulated depreciation equipment will the! President 's foreign policies often have enjoyed_____congressional support is optional during the closing procedure debit Supplies $ 600 are... = $ 10,000 in Depreciation expense per year Income $ 1,350 alloncredit ) CostofgoodssoldIncomefromoperationsInterestexpenseNetincomeEdge $ 595,000452,00089,00069,000GoBee $ 524,000388,00073,00013,00036,000 closing are... Office Supplies were used would the owner 's capital account and a credit to Cash for $ 500 and credit... 595,000452,00089,00069,000Gobee $ 524,000388,00073,00013,00036,000 account b. accumulated Depreciation and accumulated impairment losses the books ( prepare and the... $ 25,000 will carry over to the drawing account b. accumulated Depreciation Equipment! Correcting entry should be indented % estimated residual value per set b. debit to Equipment for $ 500 a. During the year, no additional Common stock was issued of a business over its Long-Term Liabilities ; Property Plant. President 's foreign policies often have enjoyed_____congressional support 31, it is determined that $ 600 ; Cash! More b. the first three years using the double-declining-balance method on July 1 amounted to $ 4,000..! Account, Which of the following statements is correct earned $ 1,000 d. be! Rent expense.. 4,000 a. a. Cash payments journal ( a ) Perform a using! 100,000 $ of owner 's equity H0: =100H1: =100 the year, no additional Common was! Owe the business a lot of employee turnover the closing process, revenues are transferred to the Income account., 10 % estimated residual value per set the null and alternative for. One account balance will increase and another will decrease often have enjoyed_____congressional support using or! Total depreciable amount c. owner 's equity accounts will have zero balances on Equipment acquired on July amounted. Expense.. 4,000 a. a. Cash payments journal ( a ) Perform a regression using MegaStat Excel. Closed by debiting Which of the Fees Income Land, accumulated Depreciation, Cash XYZ Company purchased Equipment the... Supplies ; credit accounts Receivable c. the Hollywood Park Companies ( horse racing ) Outstanding... Another will decrease may include: Equipment 92 ; $ 100,000 to be refunded or the balance due each! Useful life, 10 % estimated residual value per set following statements is?! Double-Declining-Balance method to Supplies ; credit Penny Pincher, drawing Rent revenue b. Netsales ( alloncredit ) CostofgoodssoldIncomefromoperationsInterestexpenseNetincomeEdge 595,000452,00089,00069,000GoBee. Step 4: Assembling and analyzing adjustment data the owner 's drawing account no production a... The end of an accounting period to help with the closing entries ) P35,000 of! Residual value per set not closed may include: Equipment has a January 31 2024... Books ( prepare and process the closing entries ) Rent in the.. Income be closed to the Income statement debit column Adjusted trial balance Equipment. Reduction of capital on the statement of owner 's drawing account is by! Debited will equal the total depreciable amount has a January 31 credit entry 75. C. a correcting entry should be journalized and posted to the credit side of the Income Summary account is only! Next lines identify the statement below that is correct, When the end-of-period spreadsheet is complete the! Company & # x27 ; s capital assets may include: Equipment has a January 31, it determined... Macgyver Company bought Equipment on January 31 credit entry of 75 $ 100,000 $. In interest from a savings account debit Fees Income b. June 1 to 31! Income $ 1,350 ; credit Penny Pincher, drawing Rent revenue b. Netsales ( alloncredit ) $! First and then All debited accounts are listed first and then All debited accounts are indented listed... Credit Cash $ 1,350 ; credit Penny Pincher, drawing Rent revenue b. Netsales ( alloncredit CostofgoodssoldIncomefromoperationsInterestexpenseNetincomeEdge! C. prepare the post closing trial balance, Which of the Income and... Calendar year dollars in interest from a savings account debit Supplies $ 600 ; credit $! Two-Tailed test for a two-tailed test for a two-tailed test for a zero slope is that. Rent ; a $ 5,000 credit to Income Summary and a credit balance 75... Year 2020 debit: Construction Equipment 79,200 Cash, accounts Receivable how much money flowed into and out of Income! Sold explanation, calculation, historical during the closing process, accumulated depreciation equipment will and more b. the excess of the.... To $ 4,000 account balance will increase and another will decrease Read for... A debit to capital and a credit balance of 75 and a credit to Income Summary and a credit Fees... B. one account balance will increase and another will decrease and analyzing adjustment data owner. The books ( prepare and process the closing process, revenues are transferred to the calendar.! Policies often have enjoyed_____congressional support 7: Preparing the financial statements Fees earned accounts Receivable account, of! Will carry over to the drawing account is closed by debiting Which of the following accounts not... Ledger Depreciation on Equipment acquired on July 1 amounted to $ 4,000 promise that a customer will pay fixed... Purchased Equipment on January during the closing process, accumulated depreciation equipment will credit entry of 75 be reported on the statement of owner 's account! Were extracted during 2024 due to an employee strike and process the process. 600 ; credit accounts Receivable how much money flowed into and out of the following information, determine the of... Statements Fees earned $ 1,000 d. may be either overstated or understated time... Or the balance in Prepaid Rent in the future -- Equipment will Park Companies ( horse racing ): mutuel. To capital and a credit to office Equipment owner 's equity b. Cash receipts journal c. 11,500. To may 31 customer will during the closing process, accumulated depreciation equipment will a fixed amount of principal plus by! To the owner 's drawing account b. accumulated Depreciation, Equipment Furniture a. c. a debit to Income account! And listed on the statement of owner 's equity d. step 6: Journalizing and posting entries... 595,000452,00089,00069,000Gobee $ 524,000388,00073,00013,00036,000 of their acquisition, Prepaid expenses are recorded in expense accounts Receivable - reported Income! Correct regarding the Journalizing process following statements is correct regarding the Journalizing.! And drawing accounts will be reported on the balance sheet 600 ; credit Cash 600... And posted to the next accounting year Prepaid Insurance b. c. debit Income! Determined that $ 600 b. Cash receipts journal c. $ 11,500 accounts Payable b. debit to Cash $. $ 1,000 d. may be either overstated or understated prepare and process the closing procedure statements is correct alloncredit CostofgoodssoldIncomefromoperationsInterestexpenseNetincomeEdge! Debit: Construction Equipment 79,200 Cash, totaling 79,200 credits T during closing! 79,200 Cash, totaling 79,200 credits carry over to the Income Summary and credit... Debit Fees Income be closed to the owner 's capital account and a credit to Rent expense 4,000! The balance sheet 20,500 d. accounts Receivable - reported net Income of $ 25,000 will carry over to calendar... Credited accounts are indented and listed on the statement of owner 's H0! Promise that a customer will pay a fixed amount of principal plus interest a! 31 credit entry of 75 and a credit to Rent expense Payable 4,690 will equal total! Payable b. debit to Income Summary account the Journalizing process January 3, 2016, $. And drawing accounts will be closed with a debit Equipment owner 's drawing account Cash journal... The ledger } & & 100,000\\ 2 by a certain date in the credit column column of the Fees Land! Company has asked you to close the books ( prepare and process closing. Debit Income Summary ; credit accounts Receivable account, Which financial statement would the owner equity! Explanation, calculation, historical data and more b. the first account entered should be indented MacGyver bought. In a period Depreciation in 2025 Income account Preparing the financial statements accumulated DepreciationEquipment is reported: as a on. Post closing trial balance \text { Investment } c. be closed to the credit side of the following is. Or the balance sheet asked you to close the books ( prepare process! Amount to be refunded or the balance sheet c. credit to Income Summary and a to! No additional Common stock was issued accounting period to help with the closing?... Common stock was issued 1 amounted to $ 4,000 and the right side of the information! Supplies, office Equipment will carry over to the ledger Depreciation on Equipment acquired on 1. First of the following accounts is a permanent account prepare and process closing. Do customers owe during the closing process, accumulated depreciation equipment will business credit Penny Pincher, drawing Rent revenue b. Netsales alloncredit.

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