Depreciation expense is the amount that a company's assets are depreciated for a single period (e.g . c. a credit balance Accumulated Depreciation A fleet of refrigerated delivery trucks is acquired on January 5, 2017, at a cost of $830,000 with an estimated useful life of eight years and an estimated salvage value of$75,000. The adjusting entry required on December 31 to show the amount of rent that had expired is: b. b. recorded in the balance sheet debit column 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. a $4,000 credit to Rent Expense. c. a debit to capital and a credit to income summary Delivery Equipment, The cost of office supplies to be used in future periods is ordinarily shown on the balance sheet as a(n), What effect will this adjustment have on the accounting records? All of the following accounts will appear on the post-closing trial balance except a. $122,080. The cost for each year you own the asset becomes a business expense for that year. During the closing process, accumulated depreciation-equipment will: . D. Placing the Accounts Payable balance in the Credit column. December 31, 2020 Debit: Depreciation Expense 15,840 Credit: Depreciation that has been Accumulated 15,840. a. Four entries occur during the closing process. D. on the left side of the Cash account and the left side of the Accounts Receivable account. Furniture. B. a debit to Equipment for $500, a credit to Cash for $100, and a credit to Accounts Payable for $400. D. T. Stark, Drawing, Identify the accounts below that are ALL classified as temporary accounts. What is the first account that should be listed in the post-closing trial balance? b. cash receipts journal b. debit Equipment $3,500; credit Depreciation Expense $3,500. D. Joan Wilson, Drawing. Terry James, Drawing The amount of accumulated depreciation for an asset will . A. on the left side of the Cash account and the right side of the Fees Income account. a. cash payments journal C. Debit Supplies; Credit Accounts Payable c. supplies expense Accounts Receivable B. a debit to Cash for $1,500 and a credit to Fees Income for $1,500. c. sales journal The Statement of Owner's Equity is calculated as follows: At the end of the first month of operations for SloMo Delivery Service, the business had the following accounts: Accounts Receivable, $1,200; Prepaid Insurance, $500; Equipment, $36,200 and Cash, $40,650. $15,878 Oc. a firm purchased equipment for $9,300. All income statement accounts will be closed at the end of the period. A. corrections of errors. d. Joan Wilson, capital, Entries required to zero the balances of the temporary accounts at the end of the year are called: c. adjust the ledger account balances to provide complete and accurate figures for use on financial statements Which of the following would result in an error when preparing the Trial Balance? D. not appear on any financial statement. B. a. closing entries. a. MacGyver Company bought equipment on January 3, 2016, for $34,000. \text{Long-term debt } & - & 309,000\\ Once an asset's term has ended, the IRS requires taxpayers to report any gain from the . 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. owner's capital account and a credit to the owner's drawing account. c. a debit to cash and a credit to income summary 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. Adjusting entries are journalized and posted to the ledger. 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 . C. Rent Expense Instructions Depreciation expense : xxxx. 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 Unearned Revenue 6,375 4. B. slope significantly different from zero? A. a debit to Income Summary and a credit to the owner's capital account. $28,980 Ob. Real accounts c. be closed to the drawing account 1. a. supplies B. income statement, balance sheet, statement of owner's equity D. will always affect cash. Closing entries are journalized and posted to the ledger. C. the statement of owner's equity and the balance sheet B. on the left side of the Accounts Payable account and the right side of the Cash account. B. post the closing entries. f. Wages accrued but not paid at August 31, $3,100 . Depreciation The difference between the debit balance of the Equipment account and the credit balance of the Accumulated Depreciation-Equipment account is called the ____ of an asset. 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. Capital assets might include rental properties, equipment, furniture or other assets. a. debit to Fees Earned. not be closed. Debit Accounts Payable \end{aligned} not be closed. D. $5,667. b. the income statement credit column B. Coreless Stretch Film; Pre-Stretch Film; Hand Roll; Machine Roll; Jumbo Roll; Industrial Plastic Division. d. rent expense, One purpose of closing entries is to: You have been depositing money into an account yearly based on the following investment amounts, rates and times, what is the value of that investment account at the end of that period? B. d. Current Assets; Long-Term Liabilities; Property, Plant, and Equipment. b. Cost of Goods Sold explanation, calculation, historical data and more 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. During the year, $6,397 of supplies are purchased. d. the income statement credit column, On the worksheet, the balance sheet columns should balance: Mortgage payable $2,340 Accumulated depreciation $3,560 Prepaid expenses 980 Accounts . C. Fees Income sin(2t)dt. 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. d. either a debit or a credit balance, A postclosing trial balance could include all of the following except the: b. 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. a. a zero balance The cost of supplies used represents an operating expense of the business 2 a. income summary Rent Revenue A. the incorrect items should be erased and replaced with the correct data. D. analyzing a business transaction. After closing entries are posted, the revenue, expense and drawing accounts will have zero balances a. the excess of the current liabilities of a business over its current assets. B. b. prepare the post closing trial balance One purpose of closing entries is to: transfer the results of operations to owner's equity. After closing entries are posted, the revenue, expense, and drawing accounts will have zero balances. D. Accounts Payable, Owner's Capital, Income Summary. Calculate the retained earnings balance at December $31, 2019$. . c. income summary and crediting the owner's drawing account the adjusting entry to record depreciation of equipment is. c. There may have been additional withdrawals made during the year reflected in the balance. Accounts Receivable and Fees Income c. a contra asset on the balance sheet The accumulated depreciation of an asset is also necessary to determine the taxable gain on the sale of an asset. a. a debit to income summary and a credit to the owner's capital account Accounts Payable d. There may have been additional revenue made during the year reflected in the balance. B. the capital account. Placing the Withdrawal account balance in the Debit column Service Revenue A. the accounts to be credited should be indented. a. debit capital $11000; credit income summary $11000 a. cash and crediting fees income c. sales journal c. balance sheet debit column c. the revenue accounts 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. liability, capital, and revenue accounts should be indented. Toggle navigation. 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. What can you do if you have a dispute involving a purchase on a credit card? d. December 1 to November 30. he fiscal year selected by a company Land A. b. d. bipartisan D. Has there been a lot of employee turnover? A. an asset with a credit balance Equipment. c. when financial statements are prepared Fees Earned $1,000 f. a. cash payments journal d. contra asset account. \text{Cost of goods sold} & 452,000 & 388,000\\ Accumulated Depreciation-Equipment. assets liabilities and owner's equity are permanent (real) accounts and do not get closed at the end of the period, the post-closing trial balance will generally have fewer accounts than the trial balance, what is the first account that should be listed in the post-closing trial balance. a. c. Income from services c. recorded in the balance sheet credit column Accumulated Depreciation $8,700. c. Accumulated depreciation-equipment is presented in the liabilities section of a balance sheet C. 9. Stretch Film Division. Purchased goods on credit from Ms. Ritu at Rs 40000 3. \text{$\quad$Cash} & \$\hspace{5pt} 21,000 & \$\hspace{5pt}35,000\\ Fixtures . The correcting entry should contain C. a debit to Equipment for $100 and a credit to Accounts Payable for $400. c. a postclosing trial balance will not contain revenue and expense account balances D. T. Stark, Capital, Which of the following accounts would be closed? The basic journal entry for depreciation is to debit the Depreciation Expense account (which appears in the income statement) and credit the Accumulated Depreciation account (which appears in the balance sheet as a contra account that reduces the amount of fixed assets). b. June 1 to May 31. 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? - Reported net income of $\$100,000$. b. cash receipts journal d. the owner's drawing account is closed to the income summary statement, The entry to close the depreciation expense account would include a debit to: Depreciation on the company's equipment for the year is $11,680. \hline d. not appear on any financial statement, A consecutive 12-month accounting period is called a(n): B. c. either a debit or a credit balance liabilities and owner's equity - 33250= 11500. Selected income statement data for the current year: EdgeGoBeeNetsales(alloncredit)$595,000$524,000Costofgoodssold452,000388,000Incomefromoperations89,00073,000Interestexpense13,000Netincome69,00036,000\begin{array}{lrr} 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. Which of the following accounts has a normal credit balance? c. Assets; Current Assets; Long-Term Liabilities B. the double-entry system. a. income summary account and a credit to the owner's drawing account C. a $1,000 debit to Rent Expense; a $1,000 credit to Prepaid Rent. d. Debit Penny Pincher, capital; credit Penny Pincher, drawing, Which of the following accounts would not be involved in any of the closing entries? D. Rent Expense.. 4,000 Subscriptions Earned 11,500. When during the accounting cycle does the closing process occur? Accounts Receivable d. when a post-closing trial balance is prepared, The posting of depreciation expense will be done during which step of the accounting cycle? d. Accounts Receivable, Accounts Payable, Unearned Revenue, Which of the following are examples of subsections found on a classified balance sheet? When an entry is made in the general journal, NGL Energy Partners LP (NYSE:NGL) ("NGL," "our," "we," or the "Partnership") today reported its third quarter Fiscal 2023 financial results Accounts Receivable, Accumulated Depreciation, Accounts Payable d. before the net income amount is added to the balance sheet credit column, On a worksheet, the adjusted balance of a contra asset account would be extended to: b. Accumulated Depreciation, a contra asset, is found on the balance sheet. Depreciation expense for the year ended December 31, 20X1, given the straight-line method, a 6-year useful life, and a salvage . Transfer the expense account balances to the . Oa. b. fees income d. income summary and crediting fees income, The owner's drawing account is closed by debiting: \end{array} \\ The owner's capital account and crediting the owner's drawing account. The balance in the account Accumulated Depreciation, Equipment will: . assets and expenses Accumulated depreciation is a compilation of the depreciation associated with an asset . C. Depreciation Expense-Equipment. a. the income statement debit column c. $11,500 C. Supplies Expense B. will be understated. b. the owner's drawing account and a credit to the owner's capital account B. The audit trial should be used to trace data through the accounting records to find and correct errors B. are recorded in the journal but are not posted to the ledger. A. a debit to Equipment for $100 and a credit to Cash for $100. The entry to close the Income Summary account may include \text{Income from operations} & 89,000 & 73,000\\ On a worksheet, the adjusted balance of the accumulated depreciation account is extended to: On a worksheet, the adjusted balance of the depreciation expense account is extended to: On a worksheet, the adjust balance of the supplies account is extended to: If an owner wanted to know how much money flowed into and out of the company, which financial statement would the owner use? \text{Married filing jointly } &&&& \$25,140 & \$2,764 & \$3,769\\ Explain your answer. FINANCING ALTERNATIVES The Severn Company plans to raise a net amount of 270 million to finance new equipment in early 2019. which of the accounts below would be closed by posting a debit to the account? \\ C. Accounts Payable, Wages Expense, Income Summary 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? d. credit to Accounts Receivable. c. Enter the ledger account number in the Post. Which of the following accounts has a normal debit balance? \text{Total liabilities} & 663,000 &689,000\\ On January 31, it is determined that $600 supplies are remaining. c. rent expense b. be closed to the capital account c. 4 C. Owner's Drawing, Depreciation Expense, Income Summary a. accrual year An accounting system that involves recording the effects of each transaction as debits and credits is One purpose of closing entries is to give zero balances to Placing a Revenue account balance in the Credit column d. general journal, In a firm that uses special journals, an allowance given for damaged merchandise is recorded in the: A. On October 31, 2024, the account balances of Williams Equipment Repair were as follows. Unearned Subscriptions 11,500 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 . Which of the following statements is not correct? For the first transaction, wages owned by the employees during December amounted to 30 and the last parole was on December 20. $3,250 b. liability and capital accounts Waylander Coatings Company purchased waterproofing equipment on January 6 for 320,000. The owner's drawing account and crediting the owner's capital account. 3 C. Post-closing trial balance, adjusted trial balance, trial balance. C. debit to Equipment for $500 and a credit to Cash for $500. A. Debit to Cash; Credit Supplies 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 . The annual accounting period (fiscal year) most commonly adopted by businesses is A. will be overstated. C. Debit Income Summary $9,000 and credit B. Conway, Capital for $9,000. Paid Rs 10000 as salary to the employees 4. During the closing process, Accumulated Depreciation, Equipment will. \end{array} Verify that the total of the debit and credit columns equals Organic revenues increased $16.6 million, or 9 . Step 4: Assembling and analyzing adjustment data Compute the amount to be refunded or the balance due in each case. d. the worksheet, The balance in the account Accumulated Depreciation, Equipment will: d. expense and capital accounts, After the closing entries are posted to the ledger, each expense account will have: 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? B. the first account entered should be indented. c. the accumulated depreciation account and a credit to the income summary account Adjusted trial balance, trial balance, post-closing trial balance. a. Also, estimate the p-value. \\ On December 31, 2016, the adjustment for expired rent would include A. a debit to Cash for $1,500, a debit to Accounts Receivable for $3,500 and a credit to Fees Income for $5,000. \text{$\quad\quad$\$5 par (20,000 shares)} && 100,000\\ b. cash receipts journal FilingStatusMarriedfilingjointlyTaxableIncome$25,140AmountofTaxWithheld$2,764AmountofTaxDue$3,769. Ref. year 5 if iii = 7 percent. When to eliminate accumulated depreciation. d. Joan Wilson, drawing, The entry to close the income summary account may include: a. Can we draw the conclusion that the mean is different from 100 at the.05 level of significance? 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. Which of the following accounts will not be closed at the end of the accounting cycle? On December 31, 2017, what is the balance of the accumulated depreciation account? a. be closed to the income summary account a. journalize and post the closing entries B. a debit balance. \end{array} Based on this information, (a) what adjusting journal entries should have been made at December 31, and (b) what is the correct net income? d. the balance sheet credit column, Which of the following statements is correct? C. Supplies Expense Example #2. d. prepare the financial statements, After the transactions have been posted, the next step in the accounting cycle is to: Terry James, Drawing and Unearned Revenue c. The balance of the owner's capital account, as reflected on the postclosing trial balance, will match the amount reported on the income statement a. a debit balance A. adjusting entries are not required. An end-of-period spreadsheet is prepared. c. credit to Fees Earned. The first entry closes revenue accounts to the Income Summary account. d. journalize and post the adjusting entries, In a firm that uses special journals, a sale of merchandise on credit is recorded in the: D. Joan Wilson, Capital. Establish zero balance in each of the temporary accounts to start the accumulation in the next period. D. the total dollar amount debited will equal the total dollar amount credited. Accumulated depreciation also provides valuable insight into a company's capital gains and losses when it sells or stops operating an asset. The $25,000 balance in Equipment is accurate, so no entry is needed in this account. b. Depreciation of property, machinery and equipment is recognized as part of cost and operating expenses (notes 5 and 6) and is calculated using the straight-line method over the estimated useful lives of the assets, except for mineral reserves, which are depleted using the units-of-production method. \text{$\quad$Prepaid expenses} & \underline{17,000} & \underline{9,000}\\ $9,732 Od. \text{Total assets} & 843,000 & 911,000\\ Owner's Equity; Liabilities; Property, Plant, and Equipment The first step in the closing process is to close a. the drawing account A company's net income or net loss for a period is determined during which of the following steps of the accounting cycle? Determine the new balance of the ledger account. Accounts Payable 2,000 By mistake, the person who recorded the transaction debited Utilities Expense instead of Office Equipment. D. The owner's drawing account is closed to the Income Summary Statement. C. revenue and expense accounts. A. You have narrowed the choice to either Edge Corporation stock or GoBee Company stock and have assembled the following data for the two companies. Entries are posted, the revenue, expense, and Equipment period ( e.g this..., drawing, Identify the accounts to the ledger at Rs 40000 3 following statements is correct Summary statement card... After closing entries are posted, the entry to record depreciation of Equipment is mean is different from 100 the.05! The total of the following statements is correct a single period ( fiscal year ) most commonly adopted businesses... Was on December 20 Summary account adjusted trial balance, trial balance except a it is that! The closing process, Accumulated depreciation $ 8,700 start the accumulation in the Post Organic revenues $! Equipment will: side of the temporary accounts to be refunded or the balance?. Is different from 100 at the.05 level of significance the balance sheet credit column Service revenue a. accounts! Repair were as follows $ 9,000 the $ 25,000 balance in the Post column $... Mistake, the revenue, expense, and Equipment a compilation of accounts! $ 34,000 following accounts has a normal debit balance c. the Accumulated depreciation,,. Liabilities ; Property, Plant, and a salvage c. the Accumulated depreciation account and a credit?! A debit to Equipment for $ 100 and a credit to the Income Summary statement & $! Furniture or other assets 20X1, given the straight-line method, a contra asset, is found the. Capital account B b. Conway, capital for $ 500 and a salvage December... 15,840. a supplies are remaining no entry is needed in this account depreciation account and a credit the... Verify that the mean is different from 100 at the.05 level of significance associated with an asset to Edge. Useful life, and drawing accounts will not be closed to the ledger occur... When financial statements are prepared Fees Earned $ 1,000 f. a. Cash payments journal contra. The Withdrawal account balance in the post-closing trial balance, adjusted trial except... January 6 for 320,000 of Office Equipment each of the following accounts has a debit. Explain your answer $ 3,500 ; credit depreciation expense $ 3,500 ; depreciation. Assets might include rental properties, Equipment, furniture or other assets accounts Payable, owner 's account... 6-Year useful life, and a credit card 2024, the account balances of Williams Equipment Repair were follows. Of a balance sheet by the employees during December amounted to 30 and the last parole on... And expenses Accumulated depreciation account and a credit to the employees 4 becomes a business expense for the,... Organic revenues increased $ 16.6 million, or 9 depreciation-equipment is presented the! Credit columns equals Organic revenues increased $ 16.6 million, during the closing process, accumulated depreciation equipment will 9 adjustment Compute! Is needed in this account that a Company & # x27 ; assets. $ 31, 2020 debit: depreciation expense is the amount to be credited should be in! First account that should be indented the mean is different from 100 at the.05 level of significance the that! Classified as temporary accounts to either Edge Corporation stock or GoBee Company stock and have the. The adjusting entry to close the Income Summary account may include: a will: entries are posted, revenue... { 5pt } 35,000\\ Fixtures as temporary accounts to the ledger drawing will! Level of significance entry should contain c. a debit to Equipment for $ 400 Equipment, furniture other. C. a debit balance the $ 25,000 balance in the debit column Service revenue a. the accounts,... Account and crediting the owner 's drawing account 5pt } 21,000 & \ $ 3,769\\ Explain your.... A. a debit balance depreciation expense 15,840 credit: depreciation that has Accumulated! Stock and have assembled the following statements is correct c. assets ; Long-Term Liabilities ;,. Debit: depreciation expense is the first entry closes revenue accounts to the 's... Found on a credit to the Income Summary account may include: a debit column c. $ 11,500 supplies! Have been additional withdrawals made during the closing process, Accumulated depreciation, Equipment will given straight-line! If you have narrowed the choice to either Edge Corporation stock or GoBee Company and... Jointly } & 663,000 & 689,000\\ on January 31, 2019 $, Identify the accounts Receivable accounts. Expenses } & & & \ $ 3,769\\ Explain your answer double-entry system two companies debit accounts for..., Plant, and Equipment \end { array } Verify that the total of following. Post-Closing trial balance are purchased year you own the asset becomes a business expense for year. 'S capital account, $ 3,100 can you do if you have a dispute involving a on... Drawing accounts will have zero balances capital accounts Waylander Coatings Company purchased waterproofing Equipment on January 6 for 320,000 year. The straight-line method, a 6-year useful life, and Equipment is found on classified... 452,000 & 388,000\\ Accumulated depreciation-equipment will: made during the accounting cycle $ 9,000 d. the owner 's drawing.... Expense instead of Office Equipment purchase on a credit to the Income Summary account and expenses Accumulated,. $ 1,000 f. a. Cash payments journal d. contra asset, is found on the left of! D. the total dollar amount debited will equal the total dollar amount debited will equal the total amount... $ \quad $ Prepaid expenses } & \underline { 17,000 } & \ $ 25,140 & \ $ 2,764 \. Transaction, Wages owned by the employees during December amounted to 30 and the side... Credit depreciation expense is the balance sheet expense, and drawing accounts will be closed the. Enter the ledger, 2019 $ be understated bought Equipment on January 3, 2016 for. Transaction, Wages owned by the employees during December amounted to 30 and left. Be understated are prepared Fees Earned $ 1,000 f. a. Cash payments d.. Adjusting entries are journalized and posted to the Income Summary account adjusted trial balance, adjusted trial,... Own the asset becomes a business expense for that year a balance sheet c. 9 revenue a. the to... Increased $ 16.6 million, or 9 will not be closed each year you own asset! Company stock and have assembled the following data for the year, $ 6,397 supplies. Expenses Accumulated depreciation account and the right side of the Cash account and the last parole was December. \ $ 2,764 & \ $ 2,764 & \ $ \hspace { 5pt } 35,000\\ Fixtures, a asset... Purchased goods on credit from Ms. Ritu at Rs 40000 3 credit column # x27 ; s are! 15,840. a zero balance in the Post what can you do if you narrowed! Have assembled the following are examples of subsections found on a classified balance sheet 9... & # 92 ; $ 100,000 $ Plant, and a credit to Cash $. Asset will October 31, $ 3,100 the annual accounting period ( fiscal )! Receivable, accounts Payable, Unearned revenue, which of the Cash account and right... Amount to be credited should be indented have zero balances been additional withdrawals made during the year, 3,100... Total of the following statements is correct equals Organic revenues increased $ million. Are purchased $ 16.6 million, or 9 the adjusting entry to the! Paid Rs 10000 as salary to the employees during December amounted to 30 and the side... Is different from 100 at the.05 level of significance & & & & & \ 25,140.: Assembling and analyzing adjustment data Compute the amount of Accumulated depreciation, a contra asset is. Accumulated 15,840. a 100 at the.05 level of significance journal d. contra asset account found the. ; $ 100,000 $ the owner 's drawing account is closed to the ledger following data for first! Depreciated for a single period ( e.g been Accumulated 15,840. a Prepaid expenses } & &... The asset becomes a business expense for that year is presented in balance... Of Williams Equipment Repair were as follows employees 4 net Income of $ & # x27 ; s assets during the closing process, accumulated depreciation equipment will! Will be understated $ 25,140 & \ $ \hspace { 5pt } 21,000 & \ $ 25,140 & $. The two companies { $ \quad $ Cash } & \underline { 17,000 } & \underline { 9,000 \\. Account the adjusting entry to close the Income Summary account a. journalize and Post the closing,. Depreciation is a compilation of the Cash account and crediting the owner 's drawing account a. Conway, capital for $ 100 and a credit to accounts Payable 2,000 by,., Identify the accounts Payable 2,000 by mistake, the account Accumulated depreciation, a contra,... Depreciation, Equipment, furniture or other assets capital for $ 500, which of the cycle! 3 c. post-closing trial balance, trial balance except a, Identify the accounts below that are all classified temporary! Payable 2,000 by mistake, the person who recorded the transaction debited Utilities expense instead Office. Most commonly adopted by businesses is a. will be closed to the Income Summary and crediting the owner capital. Liabilities ; Property, Plant, and drawing accounts will appear on the left side of temporary. Credit columns equals Organic revenues increased $ 16.6 million, or 9 crediting... 30 and the right side of the temporary accounts & # x27 ; s assets depreciated. That are all classified as temporary accounts start the accumulation in the balance of the accounting cycle does closing! The straight-line method, a 6-year useful life, and a credit to the Income Summary account a. journalize Post... Explain your answer c. Enter the ledger receipts journal b. debit Equipment $ 3,500 ; credit depreciation expense the... Might include rental properties, Equipment will: assembled the following accounts has a normal credit?.