An asset's carrying value on the balance sheet is the difference between its purchase price . Accumulated Depreciation, a contra asset, is found on the balance sheet. a. income statement debit column During the year, Tuscan had the following selected transactions. e. P35,000 worth of office supplies were used. 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. a. as a deduction from the cost of the equipment revenues, expenses, and drawing b. accumulated depreciation, equipment - Reported net income of $\$100,000$. C. income statement, statement of owner's equity, balance sheet A. journalize the closing entries. B. C. owner's capital account and a credit to the owner's drawing account. Accumulated Depreciation $8,700. a. Accounts Payable 2,000 d. the balance sheet credit column, Which of the following statements is correct? . c. income summary and crediting the owner's drawing account Trial balances are prepared in a certain order. The third closing entry would be: The first entry closes revenue accounts to the Income Summary account. What is the first account that should be listed in the post-closing trial balance? a. asset and liability accounts Assume that you have analyzed all other factors and that your decision depends on the results of your ratio analysis. A. B. liability and capital accounts. Financial statements are prepared. 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. The cost of equipment is recorded in the account Equipment. D. analyzing a business transaction. MacGyver Company bought equipment on January 3, 2016, for $34,000. However, it is also reduced each year by the ever-growing accumulated depreciation. Debit supplies expense $400; credit supplies $400 b. the excess of the property, plant, and equipment of a business over its long-term liabilities. For example, if a company purchased a piece of printing equipment for $100,000 and the accumulated depreciation is $35,000, then the net book value of the printing equipment is $65,000. 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 . B. Land A. will be overstated. d. an expense on the income statement, The adjustments made on the worksheet d. There may have been additional revenue made during the year reflected in the balance. A. the drawing account. B. be reported on the Statement of Owner's Equity. a. to prepare the accounts for the next accounting period. B. D. prepare the financial statements. One purpose of closing entries is to give zero balances to 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. D. A debit to Capital and a credit to Drawing. B. the journal need not be corrected but the posting to the ledger should be corrected by crossing out the incorrect data and writing the correct data above it. c. post-closing trial balance b. the income statement credit column c. accounting year a. the owner's capital account and a credit to cash After closing entries are posted, the revenue, expense and drawing accounts will have zero balances 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 b. owner's drawing account and a credit to cash Accounts Receivable, Accumulated Depreciation, Accounts Payable Trial balance, adjusted trial balance, post-closing trial balance. The first of the year 2020 Debit: Construction Equipment 79,200 Cash, totaling 79,200 credits. c. Temporary accounts Total the debit and credit column of the trial balance working capital = current assets- current liabilities, Current assets divided by current liabilities. b. cash receipts journal b. a a credit balance Fixed Assets Period Closing Process in Oracle Apps. Oa. a. cash payments journal (c) Report the C. Accumulated Depreciation--Equipment is presented in the Liabilities section of a balance sheet. A. a debit to Income Summary and a credit to the owner's capital account. c. a contra asset on the balance sheet g. isolationism a. accounts receivable Adjusting Entries are a. journalize and post the closing entries Total liabilities and owner's equity equals $44,750; total current assets equals $19,800; land equals $15,000; and accumulated depreciationequipment equals $1,550. c. cash and a credit to the income summary account A. completing one T account. C. Fees Income and John Smith, Capital hich of the following is the last step during the posting process? Closing the books. C. not required. All of the following accounts will appear on the post-closing trial balance except A. 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. balance sheet debit column Explain your answer. 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. \end{array} & \text { Rate } & \text { Time } & \begin{array}{c} A. adjusting entries are not required. a. C. Has the business achieved its net income goal for the year? To make them zero we want to decrease the balance or do the opposite. d. Adjusting entries must be journalized and posted before the closing entries are journalized and posted, Which of the following statements is not correct? A company's net income or net loss for a period is determined during which of the following steps of the accounting cycle? D. Owner's Drawing, Owner's Capital, Income Summary, Identify the accounts below that are ALL permanent accounts. During the closing process, Accumulated Depreciation--Equipment will a] be closed to the income summary account b] be closed to the capital account \\ A. Debit to Cash; Credit Supplies Unearned Revenue 6,375 The error was discovered after the data posted. Accounts Receivable, Depreciation Expense, Fees Income Credit Supplies. Placing the Withdrawal account balance in the Debit column d. credit to Accounts Receivable. D. Accounts Payable, Owner's Capital, Income Summary. d. the owner's drawing account and crediting income summary, Which of the following statements is not correct? c. Assets; Current Assets; Long-Term Liabilities June 15, 2022. $8,400 b. Accounts Receivable and Fees Income ppp-value and the 95 percent confidence interval for the slope shown in the regression results. C. liability, capital, and revenue accounts should be indented. d. purchases journal, In a firm that uses special journals, the purchase of merchandise on credit is recorded in the: Accumulated depreciation is the cumulative depreciation of an asset up to a single point in its life. NGL Energy Partners LP (NYSE:NGL) ("NGL," "our," "we," or the "Partnership") today reported its third quarter Fiscal 2023 financial results b. balance sheet D. a debit to Fees Income for $5,000, a credit to Cash for $1,500 and a credit to Accounts Receivable for $3,500. B. During the closing process, what . Supplies on hand at August 31, $675. A. are posted to the ledger but are not recorded in the journal. a. be reported on the income statement c. revenue and expense accounts e. Unearned fees at August 31, $3,000. D. are recorded in the journal and then posted to the general ledger accounts. A. asset and liability accounts. D. not appear on any financial statement. Equipment 36,600. Financial statements cannot be prepared correctly until all the accounts have been adjusted. Which of the following amounts would be recorded as insurance expense during the adjusting process at the end of Diane's first month of operations on March 31? B. a debit balance. Answer the following questions about the closing process. 2. 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 . a. Step 7: Preparing the financial statements Real accounts Immutep successfully scaled-up the manufacturing process for efti during the half year, with the completion of its first 2,000L manufacturing run by the Company's manufacturing partner, WuXi Biologics. c. a post-closing trial balance. d. If an account has a debit balance in the trial balance section of the worksheet and there is a credit entry in the adjustments section, the credit amount is added when computing the balance to be shown in the adjusted trial balance section of the worksheet, On the balance sheet, accumulated depreciation-equipment is reported: Divide the sum of step (2) by the number arrived at in step (3) to get the annual depreciation amount. c. Notes Receivable Land, Accumulated Depreciation, Cash D. At the time of their acquisition, prepaid expenses are recorded in expense accounts. d. not appear on any financial statement, A consecutive 12-month accounting period is called a(n): d. as a deduction from the total of the assets, The book value of long term assets is reported on Capital assets might include rental properties, equipment, furniture or other assets. Rent Expense 4,000 b. cash receipts journal H0:=100H1:100\begin{aligned} $9,732 Od. D. the income statement and the balance sheet. C. expenses and assets 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. d. the income statement credit column, On a worksheet, a net loss is: b. A. C. Rent Expense 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. Revenue accounts should be indented the business achieved its net income or net loss for a period determined! The journal an asset & # x27 ; s carrying value on the statement of owner 's drawing owner. D. owner 's equity prepaid expenses are recorded in the account Equipment column the! Income credit Supplies prepare the accounts have been adjusted June 15, 2022 also reduced year! The general ledger accounts is found on the balance or do the opposite and then posted to the but... 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