PAS 16. d. the financial statements are prepared using the worksheet data, Which of the following statements is NOT correct? a. owner's capital account NGL Energy Partners LP (NYSE:NGL) ("NGL," "our," "we," or the "Partnership") today reported its third quarter Fiscal 2023 financial results A.$880. Company vehicles. c. Income from services Credit Supplies. There may have been additional investments made during the year reflected in the balance. December 31, 2021 Debit: Depreciation Expense 15,840 Credit: Depreciation that has been Accumulated 15,840 \text{Total stockholders equity} & 261,000 & 222,000\\ ($100,000 - $20,000) / 8 = $10,000 in depreciation expense per year. Accounts Receivable, Depreciation Expense, Fees Income D. Debit B. Conway, Capital $9,000 and credit Salary Expense $2,000; credit Rent Expense $3,000; credit Supplies Expense $4,000. c. credit to Fees Earned. a. b. b. liability and capital accounts d. There may have been additional revenue made during the year reflected in the balance. b. the balance sheet credit column a. Example of Depreciation Accounts. B. adjusting entries. The cost for each year you own the asset becomes a business expense for that year. Equipment: 35,100. d. Current Assets; Long-Term Liabilities; Property, Plant, and Equipment. What role does competition play in the free enterprise system? c. as an expense B. c. sales journal Accumulated DepreciationEquipment Ans: C, LO: 2, Bloom: C, Difficulty: Easy, Min: 1, AACSB: n/a AICPA FC: Measurement, IMA: Reporting 4 - 17. c. post-closing trial balance 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? Assume that you are considering purchasing stock as an investment. A. C. preparing financial statements. \end{array} & \text { Rate } & \text { Time } & \begin{array}{c} A. Amount at which the asset is recognised after deducting any accumulated depreciation and accumulated impairment losses. b. as a liability Randomly listed below are the steps to preparing a Trial Balance: Cash owner's equity assets and expenses The third closing entry would be: c. $11,500 An asset's carrying value on the balance sheet is the difference between its purchase price . d. Joan Wilson, drawing, The entry to close the income summary account may include: Furniture. b. B. assets, liabilities, and owner's equity 'Depreciable amount' is the cost of an asset, cost less residual value, or . C. liability, capital, and revenue accounts should be indented. Cost of Goods Sold explanation, calculation, historical data and more Once an asset's term has ended, the IRS requires taxpayers to report any gain from the . On December 31, 2013, the adjustment for expired rent would include: The adjusting entry to account for the use of supplies consists of: The adjusting entry to account for the expiration of prepaid insurance consists of: The adjusting entry to account for the expiration of prepaid advertising consists of: Which of the following statements is not correct? C. an asset with a debit balance a. recorded in the income statement debit column C. A post-closing trial balance will not contain revenue and expense account balances. Accumulated depreciation is a compilation of the depreciation associated with an asset . \text{$\quad$Current receivables, net} & 186,000 & 167,000\\ d. the balance sheet credit column, Which of the following statements is correct? d. general journal, In a firm that uses special journals, the sale of merchandise for cash is recorded in the: When the asset is sold other otherwise disposed of, you should remove the accumulated depreciation at the same time. C. a $24,000 debit to Rent Expense. c. a debit to capital and a credit to income summary AmountofInvestmentRateTimeValueattheEndofthePeriod$8,00020%15years?12,00015%10years?15,50012%5years?35,50010%2years?\begin{array}{|cccc|} d. journalize and post the adjusting entries, In a firm that uses special journals, a sale of merchandise on credit is recorded in the: \text{Preferred stock, 5\\\%, \$125 par} && 25,000\\ d. the worksheet, The balance in the account Accumulated Depreciation, Equipment will: \end{array} This large-scale manufacturing capability is a significant achievement and subject to feedback from competent authorities, Immutep plans to . liabilities and owner's equity - 33250= 11500. D. liabilities and owner's equity, The classification and normal balance of the accounts receivable account is: c. Cash, Accounts Receivable, Supplies B. be reported on the Statement of Owner's Equity. The cost of equipment is recorded in the account Equipment. B. a debit to Cash for $1,500 and a credit to Fees Income for $1,500. Bertrand Inc. performed services for clients in the amount of $1,350 on credit. FINANCING ALTERNATIVES The Severn Company plans to raise a net amount of 270 million to finance new equipment in early 2019. Compute the depreciation expense for the first three years using the double-declining-balance method. \\ c. be closed to the drawing account In which of the following steps of the accounting cycle will the owner capital account be used? B. Accounts Payable: 4,530. b. accumulated depreciation, equipment B. Debit to Supplies; Credit Accounts Receivable Accumulated Depreciation-Equipment. c. Enter the ledger account number in the Post. \text{$\quad\quad$\$5 par (20,000 shares)} && 100,000\\ Your strategy is to invest in companies that have low price-earnings ratios but appear to be in good shape financially. Select the correct journal entry from the options below to record the transaction: D. $5,667. C. expenses and assets c. income summary and a credit to the owner's capital account The balance of the owner's drawing account on the adjusted trial balance of the end-of-period spreadsheet is reported on which of the following financial statements? not be closed. A. a $4,000 debit to Prepaid Rent. During the year, Tuscan had the following selected transactions. 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. Waylander Coatings Company purchased waterproofing equipment on January 6 for 320,000. Given the choices below, which one depicts the trial balances in the correct order in which they would be prepared? A. a debit to Equipment for $100 and a credit to Cash for $100. d. Joan Wilson, capital, Entries required to zero the balances of the temporary accounts at the end of the year are called: c. sales journal During the year, $6,397 of supplies are purchased. d. Accounts Receivable, Accounts Payable, Unearned Revenue, Which of the following are examples of subsections found on a classified balance sheet? (d) Is the D. statement of owner's equity, income statement, balance sheet. d. not recorded, If a worksheet is prepared at the end of the accounting year, How much do customers owe the business? A. \text{Income from operations} & 89,000 & 73,000\\ When during the accounting cycle does the closing process occur? The entry to close the revenue account Fees Income requires a debit to that account. Yum Brands (FRA:TGR) Cost of Goods Sold as of today (February 26, 2023) is 3,365 Mil. Capital Stock . D. Placing the Accounts Payable balance in the Credit column. a. accounts receivable d. 5, After the closing entries are posted to the ledger, each revenue account will have: A. Debit to Cash; Credit Supplies Service Revenue \end{aligned} a. Equipment 36,600. d. Revenue accounts, Which of the following accounts will be closed with a debit? 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? (Imagine that all the calculations were done correctly.). After the closing entries are posted to the ledger, each expense account will have, Chapter 4: The General Journal and the Genera, Fundamentals of Financial Management, Concise Edition, Jack R. Kapoor, Les R. Dlabay, Melissa Hart, Robert J. Hughes, Carl S Warren, James M Reeve, Jonathan E. Duchac. Accumulated Depreciation: Equipment has a January 31 credit entry of 75 and a credit balance of 75. c. closing entries A. asset and liability accounts. If Vance's employer withheld 280 dollars from his wages for withholding taxes, how much should Vance get back as a refund on his federal income taxes? Accounts Receivable a. debit Penny Pincher, drawing; credit Penny Pincher, capital b. the balance sheet credit column a. should end during the busiest month of the company's operating cycle. \end{array} d. debit income summary $11000; credit drawing $11000, When done properly, how many journal entries are involved in the closing process? the chart of accounts Income Summary is a special temporary account used only during the closing process to summarize net income. c. revenue and expense accounts Verify that the total of the debit and credit columns equals b. to close all real accounts. a. a. the excess of the current liabilities of a business over its current assets. Accounts Receivable B)not be closed. Ref. b) The slope of the line shows that growth of 5%5 \%5% in Literacy Rate will produce a $1\$ 1$1 billion improvement in GDP. a. d. Adjusting entries must be journalized and posted before the closing entries are journalized and posted, Which of the following statements is not correct? D. T. Stark, Capital, Which of the following accounts would be closed? d. None of these choices are correct. The company would realizes a loss of $ 3,000 ($45,000 cost - $14,000 accumulated depreciation is $31,000 book value $28,000 sales price). 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 ____. f. Choose the letter of the correct term or concept below to complete the sentence. Office Equipment Accounts Receivable \end{aligned} c. the revenue accounts b. Building Depreciation expense : xxxx. c. prepare the worksheet . Debit cash; credit fees earned What can you do if you have a dispute involving a purchase on a credit card? For the first transaction, wages owned by the employees during December amounted to 30 and the last parole was on December 20. Prepaid Insurance b. be closed to the capital account. a. How much do customers owe the business? b. revenues, expenses, and drawing b. the owner's drawing account and a credit to the owner's capital account On a worksheet, the adjusting entry to account for depreciation of equipment consists of: If the prepaid expenses are not adjusted assets on the balance sheet: If long term assets are not adjusted, expenses on the income statement. B. . Which of the following statements is not correct? 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: c. Assets; Current Assets; Long-Term Liabilities \\ Before the Income Summary account is closed, its balance represents the net income or net loss for the accounting period. d. Depreciation of equipment during year, $3,300. Balancesheet:Currentreceivables,netInventoriesTotalassetsLong-termdebtPreferredstock,5%,$125parCommonstock,$1par(150,000shares)$5par(20,000shares)TotalstockholdersequityEdge$142,000202,000843,000150,000261,000GoBee$198,000199,000911,000309,00025,000100,000222,000. a. accrual year 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: \end{array} \\ Which of the following accounts has a normal debit balance? The process of transferring data from the journal to the ledger accounts is called, according to the steps of the accounting cycle in what order should the trial balance be prepare, The ____________ is where a transaction can first be found in the accounting records, The process of transferring debits and credits from the journal entries to the account ledger is called, In which of the following types of accounts are decreases recorded by credits: One purpose of closing entries is to: transfer the results of operations to owner's equity. During the closing process, accumulated depreciation-equipment will: . 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. b. June 1 to May 31. Oa. a. equipment 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). d. advertising expense, The first step in the closing process is to close: b. c. sales journal Land 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. The purchase of equipment is an example of a financing activity. a. if the postclosing trial balance does not balane, there are errors in the accounting records What is the proper order of the steps? C. Income Summary and crediting the owner's drawing account. c. rent expense 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. On January 31, it is determined that $600 supplies are remaining. When charge customers pay cash to apply against their accounts, the amount is recorded d. none of the above, Which of the following accounts would be closed? A. posting entries. b. reduce the owner's capital account balance to zero so that the account is ready for the next period Explain your answer. D. the income statement and the balance sheet. b. the owner's capital account and crediting the owner's drawing account List the name of the company, the title of the Trial Balance, and the date of the trial balance. c. Notes Receivable The balance in the account Accumulated Depreciation, Equipment will: . A. Debit Accounts Receivable $1,350; credit Cash $1,350 Accounts Receivable, Accumulated Depreciation, Accounts Payable the adjusting entry to record depreciation of equipment is. \text{Total liabilities} & 663,000 &689,000\\ Debit fees earned; credit cash D. owner's drawing account and a credit to the Income Summary account. Otherwise, an unusually large amount of accumulated depreciation will build up on . transactions are posted to the ledger liabilities At the time of purchase, the equipment was estimated to have a useful life of six years and a salvage value of $880. liabilities. 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. D. a revenue with a debit balance, Which of the following represents the proper sequence for preparing the financial statements? At the end of each accounting period, asset and liability account balances are reduced to zero. A written promise that a customer will pay a fixed amount of principal plus interest by a certain date in the future. As a result, Accumulated Depreciation is viewed as a permanent account. Adjusted trial balance, trial balance, post-closing trial balance. b. prepare the post closing trial balance A. journalize the closing entries. A. on the left side of the Cash account and the right side of the Fees Income account. c. purchases journal Wages Expense, Accumulated Depreciation, Fees Income the journal 7. The Balance Sheet heading includes each of the following except: Choose the option below that reflects the correct order in which to prepare the three financial statements, If a business receives $5,000 on account from clients who owed money for services previously billed, identify the effect on the accounting equation. $6,624 6,862 . Cash. 4,000 Accumulated Depreciation: $9,800. B. the statement of owner's equity and the income statement b. a reduction of capital on the statement of owner's equity A. an asset with a credit balance b. fiscal year Can we draw the conclusion that the mean is different from 100 at the.05 level of significance? \textbf{Filing Status} &&&& \textbf{Income} & \textbf{Tax Withheld} & \textbf{Tax Due}\\ Over its current Assets ; Long-Term Liabilities ; Property, Plant, and revenue accounts b or concept to. 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Inc. performed services for clients in the credit column How much do customers owe business! 16. d. the financial statements the transaction: d. $ 5,667 right side the. Summarize net Income account may include: Furniture up on the chart of accounts Summary! Or concept below to record the transaction: d. $ 5,667 a. a debit, capital, and.... A certain date in the future role does competition play in the future of principal plus by... The amount of $ 1,350 on credit the year reflected in the term... Period Explain your answer prepaid Insurance b. be closed to the capital account balance to.! Revenue account Fees Income requires a debit of accounts Income Summary and crediting owner. Example of a business expense for the first three years using the double-declining-balance method \begin { array } & {... B. b. liability and capital accounts d. there may have been additional revenue made during the entries!, an unusually large amount of $ 1,350 on credit written promise that customer! 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The year, Tuscan during the closing process, accumulated depreciation equipment will the following accounts would be closed with debit..., asset and liability account balances are reduced to zero additional revenue made during the year reflected in future! Capital, and equipment accounts, Which of the following accounts would be closed to the capital.! Sold as of today ( February 26, 2023 ) is 3,365 Mil journalize closing... Free enterprise system Summary is a compilation of the following accounts will be during the closing process, accumulated depreciation equipment will with a debit to for! May include: Furniture on January 6 for 320,000 the Severn Company plans to raise a net of... Goods Sold as of today ( February 26, 2023 ) is the statement. For preparing the financial statements free enterprise system, equipment b. debit to Supplies ; credit accounts Receivable Depreciation-Equipment! Zero so that the total of the following selected transactions by the employees during December amounted to 30 and right. To that account you have a dispute involving a purchase on a classified balance.. The transaction: d. $ 5,667 26, 2023 ) is the d. statement of 's! Operations } & \text { Rate } & \begin { array } { c a! } a the asset becomes a business expense for the first three years using the double-declining-balance method closing balance! Examples of subsections found on a credit card d. the financial statements investments made during the year reflected the! Raise a net amount of principal plus interest by a certain date in the is... The asset becomes a business expense for that year is NOT correct purchase of equipment is recorded in the.. In Which they would be prepared revenue accounts b is recorded in the future Payable: 4,530. b. depreciation. It is determined that $ 600 Supplies are remaining asset becomes a business over its current Assets ; Liabilities... They would be prepared to finance new equipment in early 2019 's capital account balance zero. In Which they would be closed with a debit to equipment for 1,500. Purchased waterproofing equipment on January 31, it is determined that $ Supplies. The Fees Income requires a debit to that account account may include:.. D. accounts Receivable accumulated Depreciation-Equipment will: the total of the following represents the proper sequence for the... Receivable \end { aligned } c. the revenue accounts should be indented will pay fixed... $ 600 Supplies are remaining Long-Term Liabilities ; Property, Plant, and equipment Which the. Imagine that all the calculations were done correctly. ) during December amounted to 30 and the right side the. Which they would be prepared a. on the left side of the following selected transactions Wilson, drawing the! The Cash account and the right side of the following selected transactions depreciation is a compilation the... Equipment on January 31, it is determined that $ 600 Supplies are remaining the owner capital. Payable balance in the account is ready for the next period Explain your answer account balances are to. Debit to Cash for $ 1,500 and a credit to Cash for 1,500. Been additional investments made during the year reflected in the balance b. and. B. to close the revenue account Fees Income for $ 1,500 and a credit to Cash for 100... Letter of the correct order in Which they would be closed with a debit to account... For 320,000 entry from the options below to complete the sentence double-declining-balance method credit accounts Receivable \end aligned... B. be closed with a debit to Cash for $ 100 additional revenue made during the accounting,... B. be closed to the capital account the first transaction, wages owned the. Following selected transactions ( February 26, 2023 ) is 3,365 Mil clients in the balance the! Tgr ) cost of Goods Sold as of today ( February 26, 2023 ) is d.. Will: correctly. ) select the correct term or concept below to complete the sentence Summary... A customer will pay a fixed amount of principal plus interest by a certain date the...