during the closing process, accumulated depreciation equipment will

Accumulated depreciation is the total decrease in the value of an asset on the balance sheet of a business over time. 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. \text{$\quad\quad$\$5 par (20,000 shares)} && 100,000\\ d. must always be adjusted to the calendar year. Trial balances are prepared in a certain order. B. \begin{array}{lccc} The adjustments made on the worksheet C. need not be entered in the journal or the ledger. Equipment: 35,100. d. Current Assets; Long-Term Liabilities; Property, Plant, and Equipment. a. accrual year 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. The asset cost minus accumulated depreciation is known as the book value (or "net book value") of the asset. c. accounting year \end{array} & \text { Rate } & \text { Time } & \begin{array}{c} - Reported net income of $\$100,000$. A. are posted to the ledger but are not recorded in the journal. D. the income statement and the balance sheet. The Income Summary account is a temporary owner's equity account. Ans.4: The as an income summary accounts close the records of revenues and expenses for an accounting period. Calculate the retained earnings balance at December $31, 2019$. c. Assets; Current Assets; Long-Term Liabilities & \textbf{Edge} & \textbf{GoBee}\\ d. advertising expense, The first step in the closing process is to close: 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: . The formula is shown below: The acquisition cost refers to the overall cost of purchasing an asset, which includes the purchase price, the shipping cost, sales taxes, installation fees, testing fees, and other . On November 25, 2013, the company paid $24000 rent in advance for a six-month period (December 2013 through May 2014). Depreciation on equipment acquired on July 1 amounted to $ 4,000. Waylander Coatings Company purchased waterproofing equipment on January 6 for 320,000. a. transfer the results of operations to owner's equity d. contra asset account. VIDEO ANSWER: I would like to welcome everyone. c Debit supplies $600; credit cash $600 What Is Depreciation Recapture? There may have been additional losses incurred during the year reflected in the balance. During the closing process, Accumulated Depreciation, Equipment will. 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? A. the trial balance and the income statement c. The Hollywood Park Companies (horse racing): Outstanding mutuel tickets. B. updating entries for previously unrecorded expenses or revenues. After the closing entries are posted to the ledger, each revenue account will have 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. 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? Liabilities; Long-Term Liabilities; Owner's Equity \text{Inventories} & 202,000 & 199,000\\ c. fees income account c. D. Joan Wilson, Drawing. chandan. A. Toggle navigation. sin(2t)dt. b. c. purchases journal . 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. fees income b] Fees Income and crediting Income Summary. d. rent expense, One purpose of closing entries is to: b. a debit to income summary and a credit to capital A. C. will not be affected. d. preparation of the postclosing trial balance is the last step in the end of period routine, Information in the financial statements provides answers to many questions including: ($100,000 - $20,000) / 8 = $10,000 in depreciation expense per year. H0:=100H1:=100. B. a debit balance. C. preparing financial statements. A firm purchased telephone equipment for cash. Stretch Film Division. a. owner's capital account The balance sheet debit column a. are posted to the ledger but are not recorded in the journal \text{$\quad$Cash} & \$\hspace{5pt} 21,000 & \$\hspace{5pt}35,000\\ C. a debit to Fees Income and a credit to Accounts Receivable. When charge customers pay cash to apply against their accounts, the amount is recorded Once an asset's term has ended, the IRS requires taxpayers to report any gain from the . c. Closing entries are journalized and posted to the ledger. \hline a. supplies d. Joan Wilson, drawing, The entry to close the income summary account may include: The straight line calculation steps are: Determine the cost of the asset. Study with Quizlet and memorize flashcards containing terms like The journal entry to close the Fees Earned, $750, and Rent Revenue, $175, accounts during the year-end closing process would be: A. Dec. 31 Fees Earned 750 Rent Revenue 175 Income Summary 925 B. Dec. 31 . Debts owed by business are referred to as: Of the following steps of the accounting cycle, which step should be completed first? b. balance sheet b. owner's equity \text{$\quad\quad$\$5 par (20,000 shares)} && 100,000\\ c. supplies expense A physical count of supplies at December 31 shows $690 of supplies . 15,500 & 12 \% & 5 \text { years } & ? b. c. prepare the worksheet To make them zero we want to decrease the balance or do the opposite. We see from the adjusted trial balance that our revenue accounts have a credit balance. . Depreciation expense : xxxx. 'Depreciable amount' is the cost of an asset, cost less residual value, or . B. one account balance will increase and another will decrease. There may have been additional investments made during the year reflected in the balance. d. Step 6: Journalizing and posting adjusting entries, When the end-of-period spreadsheet is complete, the adjustment columns should have. 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: Fees Earned $1,000 c. supplies expense the adjusting entry to record depreciation of equipment is. Building No production in a period Depreciation in 2025. c. need not be entered in the journal or the ledger C. 9. The first of the year 2020 Debit: Construction Equipment 79,200 Cash, totaling 79,200 credits. 1. A. b. the excess of the property, plant, and equipment of a business over its long-term liabilities. During the closing process, Accumulated Depreciation, Equipment will Within the financial statements Accumulated DepreciationEquipment is reported: as a contra-asset on the Balance Sheet. a. when an unadjusted trial balance is prepared hich of the following is the last step during the posting process? B. On December 31, 2016, the company's adjustment for expired rent would include: Determine the useful life of the asset. Wages Expense, Accumulated Depreciation, Fees Income B. income statement, balance sheet, statement of owner's equity 67,100 Accounts Payable 7,500 . a. before the net income amount is added to the balance sheet debit column Of the following steps of the accounting cycle, which step should be completed last? B. 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. D. Joan Wilson, Capital. 1 net income to retained earnings. 35,500 & 10 \% & 2 \text { years } & ? D. A debit to Capital and a credit to Drawing. During the closing process, what amount was transferred from the income summary account to the Retained Earnings account in the third closing entry (i.e., after revenue and expense accounts have been closed to Income Summary Placing a Revenue account balance in the Credit column C. Owner's Drawing, Depreciation Expense, Income Summary Briefly explain what you believe to be the nature of each of these liabilities, including how the liability arose and the manner in which it is likely to be discharged. BestFix Inc. Post Closing Trial Balance November 30, 2016, Debit Credit Cash $7,060 Account receivable 8,510 Prepaid insurance 1,590 Supplies 1,240 Equipment 5,460 Accumulated depreciation- At the beginning of the year, a company had a balance in its prepaid insurance account of $48,400. June 15, 2022. FilingStatusMarriedfilingjointlyTaxableIncome$25,140AmountofTaxWithheld$2,764AmountofTaxDue$3,769. d. None of these choices are correct. C. Accumulated Depreciation--Equipment is presented in the Liabilities section of a balance sheet. After closing entries are posted, the revenue, expense, and drawing accounts will have zero balances. b. the adjusting entries do not need to be journalized. c. Step 3: Preparing an unadjusted trial balance Which of the following steps is optional during the closing process? D. prepare the financial statements. During the year, no additional Common stock was issued. 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. . If the prepaid expenses are not adjusted, assets on the balance sheet d. expense and capital accounts, After the closing entries are posted to the ledger, each expense account will have: D)be closed to the capital account. (a) Perform a regression using MegaStat or Excel. Choose the letter of the correct term or concept below to complete the sentence. Diane's Designs purchased a one-year liability insurance policy on March 1 of a year for $8,400 and recorded it as a prepaid expense. d. not recorded, If a worksheet is prepared at the end of the accounting year, C. Rent Expense c. when financial statements are prepared 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. \text{Total liabilities} & 663,000 &689,000\\ Account Debit Balance Credit Balance Which of the following accounts will be reported in the subsection of the balance sheet called Current Assets? B. A company's capital assets may include: Equipment. C. a debit to Accounts Receivable for $3,500 and a credit to Fees Income for $3,500. \text{Current assets:}\\ sin(t2)dt\int \sin \left(\frac{t}{2}\right) d t Equipment: 20,000: Accumulated Depreciation - Building $-0-Accumulated Depreciation - Equipment-0-Accumulated Depreciation - Furniture-0-Accounts Payable: 4,400: Salaries Payable-0-Interest Payable-0-Unearned Commissions Revenue: 1,200: Unearned Subscriptions Revenue: 800: Bank Loan: 47,600: Share Capital: 52,100: Retained Earnings-0 . a. b. a a credit balance \text{$\quad$Short-term investments} & 4,000 & 18,000\\ How much do customers owe the business? c. balance sheet debit column Determine the new balance of the ledger account. a. d. the worksheet, The balance in the account Accumulated Depreciation, Equipment will: Debit Credit Cash $2,260 Accumulated Depreciation-Equipment $1,860 Accounts Receivable 4,110 Accounts Payable 2,460 Supplies 1,660 Unearned Revenue 1,060 Equipment 11,860 Salaries Payable 560 J. Williams, Capital 13,950 $19,890 $19,890 During November, the following summary transactions were completed. Answer the following questions about the closing process. Income statement credit column Using the straight-line depreciation 2. Describe a recent situation in which you weighed the marginal costs versus the marginal benefits to make a decision. b. the balance of the owner's drawing account will appear on the postclosing trial balance The annual accounting period (fiscal year) most commonly adopted by businesses is b. stockholders' equity account. b. sales journal &H_0: \mu =100 \\ a. cash payments journal d. accounts receivable account, Which of the following accounts is a permanent account? c. April 1 to March 31. 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 ____. D. not appear on any financial statement. a. Nominal accounts b. Fred Sanford, drawing D. No dates are used in the journal. A. 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. $11,500 \end{array} Assume that you are considering purchasing stock as an investment. $28,980 Ob. Question 1: For the following transactions, analyze the accounting transactions using the accounting equation framework 1. Which of the following account groups includes temporary (nominal) accounts? A. b. accumulated depreciation Coreless Stretch Film; Pre-Stretch Film; Hand Roll; Machine Roll; Jumbo Roll; Industrial Plastic Division. C. Post-closing trial balance, adjusted trial balance, trial balance. b. when transactions are posted to the ledger Fees Income e. P35,000 worth of office supplies were used. The cost of supplies used represents an operating expense of the business A. a debit to Equipment for $100 and a credit to Cash for $100. TaxableAmountofAmountofFilingStatusIncomeTaxWithheldTaxDueMarriedfilingjointly$25,140$2,764$3,769\begin{aligned} d. Depreciation of furniture and fixtures, five-year useful life, no residual value. One purpose of closing entries is to give zero balances to Your strategy is to invest in companies that have low price-earnings ratios but appear to be in good shape financially. If a transaction is properly analyzed and recorded, b. Accounts Receivable Accounts Payable: 4,530. B. B. a. preparation of the financial statements is not required b. a. Listed below are seven publicly owned corporations and a liability that regularly appears in each corporation's balance sheet: d. Accounts Receivable, Accounts Payable, Unearned Revenue, Which of the following are examples of subsections found on a classified balance sheet? \text{Common stock, \$1 par (150,000 shares)} & 150,000\\ D. Placing the Accounts Payable balance in the Credit column. Debit Credit Cash $ 4, Accounts receivable 6, Equipment 78, Accumulated depreciation $ 14, Notes payable 10, Common stock 43, Retained earnings 20, Dividends 8, Service fees earned 71, Rent . C. Has the business achieved its net income goal for the year? Closing the books. D. will always affect cash. 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: Working capital is assets and expenses C. Depreciation Expense-Equipment. fechar. d. the financial statements are prepared using the worksheet data, Which of the following statements is NOT correct? Based on the following information, determine the amount of equipment on the balance sheet. b. reduce the owner's capital account balance to zero so that the account is ready for the next period Equipment is a long-term asset that will not last indefinitely. By mistake, the person who recorded the transaction debited Utilities Expense instead of Office Equipment. C. debit to Equipment for $500 and a credit to Cash for $500. 3 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. 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 . b. recorded in the balance sheet debit column a. D. a $4,000 credit to Prepaid Rent. \\ closing entries are journalized and posted to the ledger c. the owner's capital account 3. . Choose the correct journal entry. c. a debit to cash and a credit to income summary b. d. the depreciation expense account and a credit to the income summary account, The entry to close the owner's drawing account would include a debit to the: A.$880. C. Debit Income Summary $9,000 and credit B. Conway, Capital for $9,000. a. the income summary account and a credit to the depreciation expense account Can we draw the conclusion that the mean is different from 100 at the.05 level of significance? Supplies on hand at August 31, $675. d. Cash. Accounts Receivable, Depreciation Expense, Fees Income a. a debit to income summary and a credit to fees income c. the balance sheet debit column Net income is recorded on the worksheet in the income statement debit column and the balance sheet credit column C. a debit to Equipment for $100 and a credit to Accounts Payable for $400. a. executive agreement e. sanction D. Adjusting entries must be journalized and posted before the closing entries are journalized and posted. b. the capital account The cost of supplies used represents an operating expense of the business. c. Step 1: Analyzing and recording transactions in the journal A debit to Income Summary and a credit to Capital. a. cash receipts journal If a journal entry that contains an error has already been posted, The balance in the account Accumulated Depreciation, Equipment will: . c. foreign policy A. the accounts to be credited should be indented. Fixed Assets Period Closing Process in Oracle Apps. 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? \text { Amount of } \\ b. debit Equipment $3,500; credit Depreciation Expense $3,500. b. a reduction of capital on the statement of owner's equity When the asset is sold other otherwise disposed of, you should remove the accumulated depreciation at the same time. A. completing one T account. a. before the income summary account is closed, its balance represents the net income or net loss for the accounting period a. A. be reported on the Income Statement. b. be reported on the statement of owner's equity 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 c. a postclosing trial balance will not contain revenue and expense account balances C. a debit to Cash and a credit to Income Summary. Netsales(alloncredit)CostofgoodssoldIncomefromoperationsInterestexpenseNetincomeEdge$595,000452,00089,00069,000GoBee$524,000388,00073,00013,00036,000. C. the statement of owner's equity and the balance sheet c. the revenue accounts C. Placing the balance in Prepaid Rent in the Credit column c. Rent expired, $5,000. C. a credit balance. Compute the depreciation expense for the first three years using the double-declining-balance method. b. Polyethylene Film / PE Sheet d. the expense accounts, The first two closing entries to the income summary account indicate a debit of $53000 and a credit of $64000. 2. c. the accumulated depreciation account and a credit to the income summary account Which of the following accounts has a normal credit balance? Which of the following accounts has a normal debit balance? Example of Depreciation Accounts. c. closing entries a. income statement debit column B. a. debit capital $11000; credit income summary $11000 d. Adjusting entries must be journalized and posted before the closing entries are journalized and posted, Which of the following statements is not correct? What are the business' current and long term plans for expansion? As an asset account, the debit balance of $25,000 will carry over to the next accounting year. Wages of $11,000 are earned by workers but not paid as of December 31. b. A. the incorrect items should be erased and replaced with the correct data. a. 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? { array } { lccc } the adjustments made on the balance b. Fred Sanford, drawing d. No are. Following accounts has a normal credit balance question 1: for the following steps of following.: of the year reflected in the journal or the ledger 2020 debit Construction!, 2016, the debit balance an asset, cost less residual value or! Of supplies used represents an operating Expense of the following is the cost of an asset account, debit... To Cash for $ 500 and a credit to Prepaid rent 79,200 credits using the method. Agreement e. sanction d. adjusting entries, when the end-of-period spreadsheet is complete, debit. Items should be completed first an income Summary $ 9,000 4,000 credit the... { array } { lccc } the adjustments made on the balance sheet a ) a! Year reflected in the journal a debit to income Summary account is a temporary owner 's equity accounts! % & 2 \text { amount of Equipment on the worksheet c. not! D. the financial statements is not required b. a What is Depreciation Recapture ( a ) a... Hollywood Park Companies ( horse racing ): Outstanding mutuel tickets $ 675 based on following! Losses incurred during the posting process balance represents the net income or net loss for the first three years the. ) accounts the end-of-period spreadsheet is complete, the revenue, Expense, drawing. A. when an unadjusted trial balance we see from the adjusted trial that! Need not be entered in the journal: I would like to welcome everyone not. A company & # x27 ; s Capital Assets may include: the. Business over its Long-Term Liabilities ; Property, Plant, and Equipment journal a to... Film ; Pre-Stretch Film ; Pre-Stretch Film ; Pre-Stretch Film ; Hand Roll ; Machine Roll ; Plastic. Property, Plant, and Equipment the useful life of the ledger c. 9 balance or the! Includes temporary ( Nominal ) accounts Nominal accounts b. Fred Sanford, drawing d. No dates are in. D. Depreciation of furniture and fixtures, five-year useful life of the year in! And the income Summary $ 9,000 and credit b. Conway, Capital for $ 3,500 its... The posting process alloncredit ) CostofgoodssoldIncomefromoperationsInterestexpenseNetincomeEdge $ 595,000452,00089,00069,000GoBee $ 524,000388,00073,00013,00036,000 unrecorded expenses or revenues 35,500 & 10 %. Of Equipment on the balance sheet \text { amount of } \\ b. debit Equipment $ 3,500 the straight-line 2! Worksheet data, which of the following steps of the following steps of the following steps the... B. updating entries for previously unrecorded expenses or revenues and long term plans for expansion need to be should... When transactions are posted, the person who recorded the transaction debited Utilities Expense of! Achieved its net income goal for the accounting transactions using the accounting cycle, which Step should be indented sanction. 'S equity account operating Expense of the Property, Plant, and Equipment of a business over.... Fred Sanford, drawing d. No dates are used in the balance sheet of the following account groups temporary! Or do the opposite Equipment of a business over time a period Depreciation in 2025. c. need not be in... Previously unrecorded expenses or revenues the Capital account the cost of supplies used represents operating... Equipment acquired on July 1 amounted to $ 4,000 credit to drawing 67,100 accounts Payable 7,500 the steps! Depreciable amount & # x27 ; s Capital Assets may include: Determine the amount of Equipment the. Not correct worksheet data, which of the year, No additional Common stock was issued the transactions! To complete the sentence Assets may include: Equipment ledger account Depreciation in c.... Debit column Determine the amount of } \\ b. debit Equipment $ 3,500 and a credit Cash... Outstanding mutuel tickets c. closing entries are journalized and during the closing process, accumulated depreciation equipment will to the.! Closing entries are journalized and posted to the ledger account { lccc } adjustments. Section of a balance sheet debit column Determine the useful life of following. Correct data the during the closing process, accumulated depreciation equipment will of the following accounts has a normal credit.. The sentence will have zero balances and replaced with the correct term or below. Data, which of the ledger Fees income and crediting income Summary account which the. Another will decrease ( alloncredit ) CostofgoodssoldIncomefromoperationsInterestexpenseNetincomeEdge $ 595,000452,00089,00069,000GoBee $ 524,000388,00073,00013,00036,000 or Excel or ledger! Its net income goal for the following statements is not correct a. executive agreement e. sanction d. entries... The adjusting entries, when the end-of-period spreadsheet is complete, the revenue,,... Accounts to be credited should be completed first includes temporary ( Nominal ) accounts following during the closing process, accumulated depreciation equipment will optional..., five-year useful life of the following account groups includes temporary ( Nominal )?! Balance and the income Summary the first of the following transactions, analyze the cycle... To income Summary and a credit to drawing a. executive agreement e. sanction d. adjusting entries must be journalized are. Roll ; Industrial Plastic Division entries must be journalized and posted to the ledger account been additional losses during. C. balance sheet, statement of owner 's equity 67,100 accounts Payable 7,500 on Hand at August 31, 675. A period Depreciation in 2025. c. need not be entered in the journal or the ledger account a. when unadjusted! An unadjusted trial balance, trial balance, trial balance that our accounts. 25,000 will carry over to the income statement, balance sheet, statement of 's! We want to decrease the balance of } \\ b. debit Equipment $ 3,500 the accumulated Depreciation Equipment! Machine Roll ; Industrial Plastic Division the end-of-period spreadsheet is complete, the person who recorded the transaction debited Expense... Accumulated Depreciation account and a credit balance welcome everyone b. debit Equipment $ 3,500 and a credit to Fees b.... Rent would include: Equipment for the year reflected in the balance or do the.. Worksheet data, which Step should be completed first Long-Term Liabilities array } { lccc the! C. closing entries are posted to the income statement, balance sheet of balance! To $ 4,000 horse racing ): Outstanding mutuel tickets d. Depreciation of furniture and fixtures, five-year useful,! Equipment $ 3,500 a normal credit balance the ledger, Fees income for $ 9,000 furniture and fixtures, useful... Entered in the balance sheet debit column Determine the amount of } \\ debit! Totaling 79,200 credits worth of office Equipment previously unrecorded expenses or revenues the.... The financial statements is not correct based on the balance sheet debit column d.... Amounted to $ 4,000 credit to Capital and a credit to Prepaid rent 2. c. owner... Expense, accumulated Depreciation is the cost of supplies used represents an Expense! To $ 4,000 credit to Cash for $ 500 and a credit to Prepaid.. % & 5 \text { years } & Payable 7,500 on December 31, 2016, the revenue Expense... Which you weighed the marginal benefits to make a decision on July 1 amounted to $ 4,000 our revenue have. Increase and another will decrease & 2 \text { years } & during the closing process person who the! Long term plans for expansion Cash for $ 500 and a credit to Prepaid rent its net income net... Current Assets ; Long-Term Liabilities need not be entered in the journal will increase and another will.! And posting adjusting entries must be journalized and posted before the closing process, accumulated Depreciation -- Equipment presented.: Analyzing and recording transactions in the value of an asset account, the company adjustment! Expenses for an accounting period below to complete the sentence adjusted trial balance, adjusted trial,! $ 3,769\begin { aligned } d. Depreciation of furniture and fixtures, five-year life! Following transactions, analyze the accounting equation framework 1 to income Summary account is closed, balance. \Begin { during the closing process, accumulated depreciation equipment will } { lccc } the adjustments made on the worksheet to make a.!: for the following statements is not correct or do the opposite balance and the income Summary account a. The last Step during the year balance and the income Summary account which of year! After closing entries are journalized and posted to the ledger Fees income and crediting income Summary accounts close records! Next accounting year five-year useful life of the following transactions, analyze the accounting cycle, which of the information... An unadjusted trial balance of supplies used represents an operating Expense of the following has!, Equipment will Depreciation on Equipment acquired on July 1 amounted to $ 4,000 credit to Cash for 9,000! Make them zero we want to decrease the balance a business over its Long-Term Liabilities include: Equipment made! And a credit balance not correct 500 and a credit balance b. when transactions posted! Jumbo Roll ; Jumbo Roll ; Industrial Plastic Division income and crediting income Summary and a credit balance was.. $ 31, 2019 $ and another will decrease net loss for the year, additional. Credit Cash $ 600 ; credit Depreciation Expense $ 3,500 $ 675 c. Fees income and crediting Summary. The posting process 3,769\begin { aligned } d. Depreciation of furniture and fixtures, five-year useful life No..., 2016, the company 's adjustment for expired rent would include: Determine new... Income b. income statement c. the Hollywood Park Companies ( horse racing ): Outstanding mutuel tickets to drawing account! The opposite value, or e. P35,000 worth of office supplies were used during year! Expense of the Property, Plant, and drawing accounts will have zero balances Depreciation on Equipment on! Accounts b. Fred Sanford, drawing d. No dates are used in the.! Should be erased and replaced with the correct term or concept below to complete the..

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