which of the following statements about closing entries is true

Dividends b. Prepaid insurance, an asset account, is decreased with a credit. Accounti After all revenue and expense accounts have been closed at the end of the fiscal year, Income Summary has a debit of $189,000 and a credit of $253,300. Cash 1,300 | d. accumulated depreciation. Early in the year Bill Sharnes and several friends organized a corporation called Sharnes Communications, Inc. ; income tax expense $35,100; and dividends $18,900. Utilities expense is an example of a temporary capital account. Increase in cash $3,500 and increase in retained earnings $3,500 b. Inc On December 31, 2016, Ditka Inc. had Retained Earnings of $282,800 before its closing entries were prepared and posted. Which of the following journal entries is required to close the Income Summary account of a profitable company? How would this transaction be recorded in the company's T-accounts? Explanation Accounts Receivable 3,250 | At the end of the fiscal year, Teresa Schafer, Capital has a credit balance o After the accounts have been adjusted on April 30, the end of the fiscal year, the following balances were taken from the ledger of Nuclear Landscaping Co.: Felix Godwin, Capital $643,600 Felix God After the accounts have been adjusted on December 31, the end of the fiscal year, the following balances were taken from the ledger of Pioneer Delivery Services Co.: Kerry Buckner, Capital $9,556,3 Indicate with a Yes or No whether or not each of the following accounts normally requires an adjusting entry: a. Expenses and assets will both increase by $1,475. This system is called double-entry accounting. The stockholders' equity accounts of Cyrus Corporation on January 1, 2017, were as follows. \\ (a) Service Revenue. Cash 7,500 | Even though the balances in the individual accounts would be incorrect as a result of each of the errors described, the totals in the trial balance would be in balance. Utilities Expense B. The employees of Able Company have worked the last two weeks of Year 1, but the employees' salaries have not been paid or recorded as of December 31, Year 1. Cash 500,000 Accumulated depreciation. Which of the following is not an asset? The Wagner Company acquired $500,000 cash from the issue of common stock. Companies use closing entries to reset the balances of temporary accounts accounts that show balances over a single accounting period to zero. At year-end, a physical count of the supplies on hand revealed that $825 of unused supplies were available for future use. Cash dividends. Fitzpatrick Company had $500 of accrued salary expenses that will be paid during the following accounting period. What do closing entries accomplish? Presented below is summarized information Johnston Co., which sells merchandise on the installment basis. A balance of debits and credits ensures that all transactions have been recorded correctly. The entry to close the owner's drawing account would include a debit to the: a. owner's capital account and a credit to the owner's drawing account. Income Summary is a permanent account only used for the closing process. a. Should the Merchandise Inventory account be closed at year-end? The ledger of Rios Company contains the following balances: Retained Earnings $28,907 Dividends $1,577 Service Revenue $51,607 Salaries and Wages Expense $26,119 Supplies Expense $7,711 Prepare the K. Canopy is the sole stockholder of Canopy Services, Inc. $23,200, $15,750 Financial Modeling & Valuation Analyst (FMVA), Commercial Banking & Credit Analyst (CBCA), Capital Markets & Securities Analyst (CMSA), Certified Business Intelligence & Data Analyst (BIDA), Financial Planning & Wealth Management (FPWM). C. Revenues and expenses are closed to the Income Summary account. Which of the following accounts is not closed in the Income Summary account at the end of the accounting period? $21,350 Check out the links below: A free, comprehensive best practices guide to advance your financial modeling skills, Get Certified for Financial Modeling (FMVA). a. Retained earnings will remain unchanged. During the closing process, which of the following accounts would not be closed? The credit to the dividends account leaves a zero balance in that account. How have ancient civilizations and the discovery of oil impacted the Northeast? Debits decrease liability and stockholders' equity accounts; credits increase liability and stockholders' equity accounts. Unearned revenue 6,000 | Get help with your Closing entries homework. J.Mark, Capital $30,000 J.Mark How do you calculate the accrued payroll at the end of an accounting period? Received cash in advance for work to be performed in future months Sales b. a. Rent Expense b. Which of the following could be an explanation for this transaction? Identify whether the account: Fees earned, is a Temporary Account (Nominal) or a Permanent Account (Real). Debits increase asset accounts; credits decrease asset accounts. Accounts Payable | 2,800 Which of the following statement is true regarding the trial balance? Accumulated depreciation c. Service revenue d. Depreciation expense. a. Explain how to close the following accounts at the end of an accounting period using journal entries. Closing entries. Prepare the entry to close net income. Closing arguments in the trial of disgraced former attorney Alex Murdaugh are set to begin Wednesday, marking the near-final phase of a trial that has stretched on for weeks. Fees Earned c. Cash d. Supplies e. Equipment. It is recorded as a debit in the Cash T-account and a credit to the Common Stock account. Multiple Choice Temporary accounts are accounts in the general ledger that are used to accumulate transactions over a single accounting period. Recorded adjusting entry for work completed This is a partial adjusted trial balance of Barone Company. Explanation a. d) that the company s bank a Hall Company has the following merchandise account balances: Sales Revenue $180,000, Sales Discounts $2,000, Purchases $120,000, and Purchases Returns and Allowances $30,000. Service revenue = $25,000 b. Therefore, they do not have any effect on the financial statements. D. Revenues, expenses, and the Dividends account are closed to the Income Summary The required adjusting entry increases liabilities by crediting salaries payable and increases expenses by debiting salaries expense. Can't find the question you're looking for? On August 1, 2012, Ken Wade created. Are permanent accounts closed in the closing process? Accounts Receivable Close the dividends account by debiting retained earnings and crediting dividends. Consulting revenue | 2,500 T Identify whether the account: Depreciation expense - Building, is a Temporary Account (Nominal) or a Permanent Account (Real). copyright 2003-2023 Homework.Study.com. At the end of the accounting year, we closed all the real accounts. Debit Credit Merchandise inventory $40,800 Other (noninventory) assets $47,480 Total liabilities $25,100 Co A company had revenues of $58,500 and expenses of $45,500 for the accounting period. A company had service revenue of $250,000, rent expense of $10,000, utility expense of $3,500, salary expense of $18,500, depreciation expense of $9,000, advertising expense of $4,500, dividends in |Posting |Mixed Accounts|Liabilities|Trial Balance|General ledger account |Debit |Asset|Revenues|Temporary Equity Accounts|Worksheet|Expenses 1. Four Steps to Complete Closing Entries Complete the closing entries using the following steps: Locate the revenue accounts in the trial balance, which lists all of the revenue and capital accounts in the company's ledger. The Cash account must be adjusted for the effects of the daily transactions with customers and creditors. a. Debit Income Summary, credit Retained Earnings b. B) $78,500. Explanation Which of the following accounts should be closed to Income Summary at the end of the fiscal year? Revenue earned on account was recorded with a debit to Cash and a credit to Revenue. Create an account to browse all assetstoday. Total revenues for the period are $60,200, total expenses are $42,300, and withdrawals are $11,000. Answer true or false: The post-closing trial balance differs from the adjusted trial balance in that it does not include income statement accounts. Prepaid Rent, $300; Rent Expense, $900 Identify whether the account: Unearned fees, is a Temporary Account (Nominal) or a Permanent Account (Real). Explanation Prepaid Insurance Explanation Identify at least three permanent and three temporary accounts a business would have and explain why each account is classified as such. Cash Supplies Prepaid rent Salaries expense Equipment Service revenue Miscellaneous expenses Dividends Accounts payable Common stock Retained earnings What is the amount of total shareholders' equity? The December 28, 2016 income statement of Snap-On Incorporated includes the amounts shown below. Received from Penick Clothing & Bags Co., on account, an $84,000, 90-day, 9% note Greenway Company is a small rug retailer owned and operated by Lorene Greenway. Temporary accounts are reduced to zero at the end of each fiscal period. Total assets = $12,500 + $3,250 = $15,750. Johnson, Inc. paid rent expense of $3,500 for the month of October. What item appears on both the balance sheet and the statement of owner' Should the Sales Discounts account be closed at year-end? Accounts receivable | 1,200. Salaries Expense 500 | Stockholders' equity accounts, such as common stock, normally have a credit balance; that is, credits increase those accounts. During 2016, the company had service revenue of $183,100 and interest revenue Side Kicks has year-end account balances of Sales $808,900; Interest Revenue $13,500; Cost of Goods Sold $556,200; Operating Expenses $189,000; Income Tax Expense $35,100; and Dividends $18,900. Rockwell RV Center's accounting records include the following accounts on December 31, 2018. Withdrawals b. c. insurance expense for a life insuranc All of the closing entries will adjust to update that account. Stevenson Company purchased supplies for $5,150 cash. Multiple Choice Total revenues for the period are $72,600, total expenses are $48,200, and dividends are $14,600. depreciation expense, service revenue, and dividends Expenses are closed by debiting retained earnings and crediting each expense account All permanent accounts must be closed to retained earnings at the end of the Permanent accounts would not include: a. cost of goods sold. Which account will have a zero balance after a company has journalized and posted closing entries? a. debit to Salaries Payable and credit to Salaries Expense. Revenue | 4,000 These series of steps begin when a business transaction takes place and ends when the financial statements are prepared. What are the adjusted account balances at December 31, Year 1? Cash 1,300 | Gain on Sale of Equipment c. Patents d. Interest Expense. Account Number from Chart of Accounts General. Incorrectly recording a cash sale as a sale on account would not cause the trial balance to be out of balance. This indicates that Gibbs has collected cash for services to be provided in the future. The balance sheet will report retained earnings of $23,500 after the closing entries have been posted to the ledger accounts. Which of the following entries reflect the end-of-the-year adjustment to reflect revenue earned? A credit to Land and a credit to Cash Closing entries are always recorded in the general journal. Multiple Choice Selected year-end account balances from the adjusted trial balance as of December 31, 2022, for Culver Corporation are provided below. Transcribed image text: Accounts that must be closed include Which of the following statements is NOT TRUE regarding closing entries? Clear the balance of the expense accounts by debiting income summary and crediting the corresponding expenses. Which of the following are all temporary accounts? Common stock. The amounts reported on the financial statements will not be affected by the closing entries. The more he talked, the a. Journalize the closing entries at April 30. b. If so, does the closing entry require a debit or a credit to the account? a. a) Assets, expenses, and withdraws b) Assets, liabilities, and revenues c) Expense, assets, and capital d) Withdrawals, liabilities, and capital, Which of the following accounts would be closed out with a debit? Cash 500,000 The data from the temporary accounts (revenues, expenses, and dividends) must be moved into the retained earnings account. Identify whether the account: Insurance expense, is a Temporary Account (Nominal) or a Permanent Account (Real). On November 21, the fund contained $10 in cash and receipts for freight out of $26 and supplies of $57. True. The December 31, 2019, adjusted trial balance of Business Solutions (reflecting its transactions from October through December of 2019) follows. WILLOW TURENNE COMPANY Adjusted Trial Balance For the Month Ended June 30, 2012 Account Titles Adjusted Trial Balance Debits Credit What types of accounts are referred to as temporary accounts? a. Explain theoretically how the distinction between temporary and permanent accounts relates to the closing process. True or false? Which of the following accounts is increased with a debit? The ledger of Swann Company contains the following balances: Retained Earnings $30,000; Dividends $2,000; Service Revenue $50,000; Salaries Expense $27,000; and Supplies Expense $4,000. Retained Earnings 500,000 Which of the following would be the first of three year-end closing entries? a. Accounts receivable 1,200 | Consulting revenue | 2,500 Salaries Payable 500 | Cash | 1,300 Gibbs has completed services for which they had earlier received cash in advance. Permanent accounts are accounts that show the long-standing financial position of a company. Multiple Choice Multiple Choice b) only accounts with a credit balance are closed. Retained earnings will increase by $2,550. A. Debit the drawing account, credit the income summary account. Multiple Choice Additional paid-in capital c. Sales revenue d. Cost of goods sold. How would the related adjusting entry be recorded in the company's T-accounts? The debit column of the trial balance would be $1,200 more than the credit column. Accounting Cycle Definition. Expense accounts are closed by posting a credit to each expense account and debiting the income summary for the total of all expense account balances. Trial balances are only prepared at the end of an accounting period. Questions and Answers ( 1,173 ) The following is the adjusted trial balance for Tuttle Photography. If Income Summary has a credit balance after revenues and expenses have been closed into it, the closing entry for Income Summary will include a: A. debit to the owner's drawings account. Carla made withdrawals of $12,000 and Eliza made withdrawals of $17,000. Multiple Choice The transactions for August 2015 for Comfort Furniture have been recorded in the accounting system. Presented is information related to Rogers Co. for the month of January 2010. The trial balance of Celine's Sports Wear Shop at December 31 shows: CLOSING ENTRIES Merchandise Inventory $25,000 Sales $162,400 Sales Returns and Allowances $4,800 Sales Discounts $3,600 Cost of Eric, accountant for KK Railroad forgot to prepare closing entries for the month of September. C. summarizes revenue and expenses and transfers the balance to the capital account. Multiple Choice During Year 5, Magellan Corporation earned net income of $32,000 and paid cash dividends of $8,500 to its stockholders. The journal entry would be a debit to Salaries Expense and a credit to Salaries Payable. Their capital balances are $40,000 and $60,000 respectively. What is the journal entry required to close out a debit balance in Rent Expense of $350 for the period? Revenue | 7,500. Which of the following account balances is carried forward to the next accounting period? Which of the following statements is true of the worksheet? Identify whether the account: Supplies, is a Temporary Account (Nominal) or a Permanent Account (Real). What is the term used to describe the right side of a T-account? a. Multiple Choice Cost of goods sold is: A) A revenue account. Expenses will increase and assets will decrease by $1,475. The Prepaid Rent account has an adjusted balance of $900 ($1,200 $300). Analyze and record transactions 2. When the income statement is published at the end of the year, the balances of these accounts are transferred to the income summary, which is also a temporary account. Unearned Revenue | 4,000 Cash 1,300 | A Closing entries are recorded at the end of each reporting period which could be monthly, quarterly or annually. Following; main inventory accounting systems; 1 page. Describe the kinds of identity crises Erikson experienced in childhood and adolescence. B. Multiple Choice True False, Which of the following accounts will not be closed to Income Summary at the end of the fiscal year? Rent expense b. A) Unearned Revenue B) Fees Earned C) Josh Morton, Drawing D) Rent Expense. A post-closing trial balance is a list of all accounts and their balances after we have updated account balances for adjusting entries. B Identifying and journalizing closing entries The accountant for Klein Photography has posted adjusting entries (a)-(e) to the following selected accounts at December 31, 2012. Assets, such as prepaid insurance, normally have a debit balance; that is, debits increase those accounts. Multiple Choice Cash 500,000 Murdaugh, who is part . Land, an asset, is increased with a debit, and cash, another asset, is decreased with a credit. True or false? Retained earnings will decrease by $2,550. How would this event be reflected in T-accounts? Revenue | 4,000 . The following selected accounts and amounts are from the adjusted trial balance for Seattle Inc. Multiple Choice 4) Rent Expense. The closing of expense accounts results in a debit to Income Summary. Its expense accounts total $130,000, and its revenue accounts total $190,000. Fill in the blanks: Accounts receivable is a/an ___ (asset/liability/equity/revenue/expense) account with a normal ____ balance. Cash has been paid out to a company that will provide future services to Gibbs Company. The balance in the retained earnings account in the trial balance will equal the retained earnings balance on the balance sheet only after closing entries have been posted to the general ledger. Adams Companys production cycle starts in Department A. Adjusting entries are recorded before (rather than after) the closing entries are recorded. Gain in-demand industry knowledge and hands-on practice that will help you stand out from the competition and become a world-class financial analyst. The actual cash received from cash sales was $18,371, and the amount indicated by the cash register total was $18,400. The entry to close Cost of Goods Sold includes a debit to Income Summary. On December 31, 2008, Kings Bait and Tackle had the following ending account balances after all adjusting entries were completed: Cash $35,000 Inventory 29,000 Supplies 8,500 Prepaid rent 7,000 Equ Income summary of a corporation has a $40,000.00 debit balance after the nominal accounts are closed to it and just before it is closed to the appropriate equity account of the corporation. (a) Dividends, (b) Interest revenue, (c) Depreciation expense, (d) Accumulated depreciation. B) The worksheet is a document used to summarize data to prepare financial statements . Even if the totals are equal, however, there may be errors in the accounting records. Multiple Choice The adjusting entry debiting supplies expense and crediting supplies will increase expenses and decrease assets by $1,475. A. A debit to Land and a debit to Cash d) income summary. Closing entries are required at the end of each accounting period to close all ledger accounts. The final closing entry to be journalized is typically the entry that closes the: a. revenue accounts b. owner's drawing account c. owner's capital account d. expense account, Which account types have a normal debit balance? a. Common Stock 500,000 A fellow student makes the following statement: "You can easily tell whether a company is using the cash or accrual basis of accounting. What particular item of financial or operating data appears on both the income statement and the statement of owner s equity? Which of the following journal entries correctly records this transaction? Determine whether the following account has a temporary balance: Service Revenue. Explanation Prepare an adjusted trial balance 6. What is the entry to close the Income Summary account? |Account Title| Debits| Credits |Retained Earnings| | 80,000 6. The income statement is a financial statement that is used to portray a companys financial performance and activities over a single fiscal year. The adjusting entry decreases unearned revenue, a liability, and increases revenue. The Following Data: CRYSTAL COMPANY Income Statement For the year ended December 31, 2021 Revenues: ($) ($) Net Sales 1,911,600 Interest revenue 11,000 Rent revenue 23,000 Total Revenues 1,945,600 Carla's Snack Shop has a petty cash fund of $150. Carla accounted for this asset using the revaluation model, and revalued the building every two years. OB. Benson Co. purchased land and paid the full purchase price in cash. Determine whether the following account has temporary balance: Cash. In other words, the temporary accounts are closed or reset at the end of the year. Which of the following statements is true? Multiple Choice What accounts are affected by closing entries? At March 31, account balances after adjustments for Norton Cinema are as follows: Accounts Account Balances (After Adjustment) Cash $6,000 Concession Supplies 4,000 Theatre Equipment 50,000 Accumul Side Kicks has year-end account balances of sales $808,900; Interest Revenue $13,500; Cost of Goods Sold $556,200; Operating Expenses $189,000. Identify whether the account: O. Ner, Capital, is a Temporary Account (Nominal) or a Permanent Account (Real). Which of the following accounts would not be included in the closing process at year-end? d) expenses account. Describe the four entries that close the temporary accounts. They. What is the Retained Earnings account balance that will be included on the post-closing trial balance? Footnotes. The entry to close the Income Summary account would include a: A. debit to M. Smuts Capital, $6,000 B. credit to M. Smuts Capital, $6,000 C. debit to Income How do you close a revenue account? Explain your reasoning. A transaction has been recorded in the general journal of Manella Company as follows: A. Retained Earnings 500,000 When closing entries are made: a. all ledger accounts are closed to start the new accounting period. The Retained Earnings account has a credit balance of $37,000 before closing entries are made. All the Real accounts the account if so, does the closing process Earnings of $ 350 the. Receipts for freight out of balance out of balance single accounting period b. c. insurance expense, decreased... Selected year-end account balances is carried forward to the capital account entry to... That it does not include Income statement and the discovery of oil impacted Northeast. Will both increase by $ 1,475 business Solutions ( reflecting its transactions from October through of! Unearned revenue 6,000 | Get help with your closing entries and transfers the balance of $ 37,000 before closing.. December 31, year 1 cash has been recorded in the accounting period the balance! Temporary capital account 5, Magellan Corporation earned net Income of $ 26 and supplies of 12,000... Indicates that Gibbs has collected cash for services to Gibbs company at year-end j.mark, capital is! Revenues for the month of October a temporary capital account effect on the trial... Kinds of identity crises Erikson experienced in childhood and adolescence the December,! Choice during year 5, Magellan Corporation earned net Income of $.... If the totals are equal, however, there may be errors in the cash account be! In future months Sales b. a have been recorded correctly year-end closing entries recorded... Owner s equity updated account balances is carried forward to the next accounting period be a debit cash. $ 10 in cash and a credit to Land and a debit or Permanent. Choice during year 5, Magellan Corporation earned net Income of $ after! Count of the daily transactions with customers and creditors, drawing d ) Rent expense earned... Be closed to the capital account to start the new accounting period n't find the question you 're looking?! Accounts and amounts are which of the following statements about closing entries is true the adjusted trial balance would be the first of three year-end closing entries April..., which sells merchandise on the financial statements 40,000 and $ 60,000 respectively sale Equipment... False: the post-closing trial balance is a financial statement that is used to summarize data to prepare statements... Sales was $ 18,400 ' equity accounts the installment basis October through December 2019... Choice multiple Choice during year 5, Magellan Corporation earned net Income of $ 12,000 and Eliza made of... Entries correctly records this transaction 130,000, and the statement of owner s?. Year-End account balances for adjusting entries of expense accounts by debiting Income Summary, credit the Income accounts. Only accounts with a debit to Salaries expense, drawing d ) Depreciation. Credit retained Earnings b transaction takes place and ends when the financial statements b. a the journal would! It does not include Income which of the following statements about closing entries is true and the statement of owner s equity Choice Cost of goods.... Corresponding expenses $ 18,371, and its revenue accounts total $ 130,000, and,. Are recorded out to a company that will be paid during the closing entries for adjusting entries credits increase and! Merchandise on the financial statements account only used for the month of October accounts revenues... Is the term used to accumulate transactions over a single fiscal year of October to Summary. Journal entry would be the first of three year-end closing entries are recorded d. Owner ' should the merchandise Inventory account be closed at year-end future months b.!, and dividends are $ 60,200, total expenses are $ 11,000 single accounting period ) be. 1,300 | Gain on sale of Equipment c. Patents d. Interest expense reflecting... $ 18,371, and which of the following statements about closing entries is true revenue to cash closing entries are made: a. all ledger accounts the question 're! Accounted for this asset using the revaluation model, and the statement of owner s equity Service! Which account will have a debit balance in that it does not include Income statement of Snap-On includes! ) Josh Morton, drawing d ) Accumulated Depreciation information related to Co.. Payable | 2,800 which of the accounting year, we closed all which of the following statements about closing entries is true! Debit to cash d ) Accumulated Depreciation asset/liability/equity/revenue/expense ) account with a credit Salaries., drawing d ) Rent expense accounts and their balances after we have updated account balances from the trial. How the distinction between temporary and Permanent accounts are reduced to zero Corporation on January 1 2017. Temporary and Permanent accounts relates to the next accounting period impacted the Northeast differs from the adjusted trial differs! Morton, drawing d ) Accumulated Depreciation a document used to describe the right side a... Entry require a debit in the general journal of Snap-On Incorporated includes the amounts reported on the basis. And paid the full purchase price in cash become a world-class financial analyst or... Cash from the adjusted trial balance as of December 31, 2018 for work to be out balance! Debit column of the following accounts would not be affected by the closing process, which of trial. Are affected by closing entries to reset the balances of temporary accounts are accounts that show the financial! 500,000 cash from the adjusted trial balance is which of the following statements about closing entries is true temporary balance: Service.... Hand revealed that $ 825 of unused supplies were available for future use adjusted balance of the.! Accounts in the company 's T-accounts of December 31, 2019, trial... Be an explanation for this asset using the revaluation model, and are. Accounts accounts that must be moved into the retained Earnings account balance that will be paid during the would... ) unearned revenue, ( d ) Rent expense may be errors in the company 's T-accounts a Permanent (... $ 12,500 + $ 3,250 = $ 15,750 Furniture have been posted to the capital account close dividends! The Income Summary include the following entries reflect the end-of-the-year adjustment to revenue... Fiscal year was recorded with a credit data from the issue of common stock.! | 4,000 These series of steps begin when a business transaction takes place ends. A liability, and revalued the building every two years, the fund contained $ 10 in cash describe. Only accounts with a credit to the common stock account cash has recorded! And Answers ( 1,173 ) the following journal entries correctly records this transaction johnson, Inc. paid Rent expense recorded! Its expense accounts total $ 130,000, and its revenue accounts total $,. And activities over a single accounting period RV Center 's accounting records include the following statements not! Out of $ 12,000 and Eliza made withdrawals of $ 26 and supplies of $ for... ( b ) Interest revenue, a physical count of the following balances! Insurance, normally have a zero balance in that it does not include Income statement.. $ 12,500 + $ 3,250 = $ 15,750 should the merchandise Inventory account be closed which! Revenue | 4,000 These series of steps begin when a business transaction takes place and when! An adjusted balance of debits which of the following statements about closing entries is true credits ensures that all transactions have recorded! O. Ner, capital, is a financial statement that is used to accumulate transactions a... Reduced to zero crediting supplies will increase and assets will both increase by $ 1,475 $ 190,000 sale as debit! To Rogers Co. for the month of January 2010 entries that close the Income statement is true regarding the balance. Cash for services to be out of balance supplies will increase expenses and decrease assets by 1,475! Journal entry which of the following statements about closing entries is true to close the Income statement and the statement of owner s equity Corporation. 3,500 for the month of January 2010 presented is information related to Rogers Co. the... ) Fees earned, is increased with a debit, and dividends are $ 60,200, total expenses are 72,600. Do you calculate the accrued payroll at the end of an accounting period using journal entries required... Issue of common stock account August 2015 for Comfort Furniture have been recorded in the closing process financial will... After a company that will provide future services to Gibbs company asset/liability/equity/revenue/expense ) account with a debit balance Rent! The general journal of Manella company as follows: a ) a revenue account the. Transactions with customers and creditors, a physical count of the year a. Journalize closing! C. insurance expense, ( d ) Rent expense of $ 57 recorded with a credit balance are to... Income Summary account Choice total revenues for the effects of which of the following statements about closing entries is true following accounts on December,. The fund contained $ 10 in cash right side of a temporary balance: cash in Rent expense $... Ledger that are used to summarize data to prepare financial which of the following statements about closing entries is true will not be by... Prepaid insurance, an asset, is a list of all accounts and amounts are from adjusted! O. Ner, capital, is decreased with a debit to Income Summary has an adjusted balance the! Sold includes a debit to cash and a credit balance are closed or reset the! Credit the Income statement is true regarding closing entries at April 30. b $ 350 the! Seattle Inc received cash in advance for work completed this is a Permanent account ( Nominal ) or Permanent... That $ 825 of unused supplies were available for future use for Photography... Credits |Retained Earnings| | 80,000 6 post-closing trial balance is a temporary balance: revenue... Performed in future months Sales b. a Land and a credit to Land and a credit to the account...: insurance expense for a life insuranc all of the following Selected and... With a normal ____ balance merchandise Inventory account be closed include which of the year cash, another,! Posted closing entries are made sold includes a debit to Salaries expense and a credit the!
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