or the year ended December 31, a company had revenues of $190,000 and expenses of $114,000. The owner withdrew $38,000 during the year. Which of the following entries could not be a closing entry? __ Debit Income Summary $76,000; credit Owner's, Capital $76,000. __ Debit Owner's Capital $38,000; credit Owner Withdrawals $38,000. __ Debit revenues $190,000; credit Income Summary $190,000. __ Debit Income Summary $114,000. __ Debit Income Summary $190,000; credit revenues $190,000.
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For the year ended December 31, a company had revenues of $190,000 and expenses of $114,000. The owner withdrew $38,000 during the year. Which of the following entries could not be a closing entry?
__ Debit Income Summary $76,000; credit Owner's, Capital $76,000.
__ Debit Owner's Capital $38,000; credit Owner Withdrawals $38,000.
__ Debit revenues $190,000; credit Income Summary $190,000.
__ Debit Income Summary $114,000.
__ Debit Income Summary $190,000; credit revenues $190,000.
Solution:
Closing entries are entries which are made to close the temporary accounts balance to Zero. These are made at the end an accounting period. For these, Revenue accounts are debited to close and expenses accounts are credited and withdrawals are credited.
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- After all revenue and expenses have been closed at the end of the fiscal period ended December 31, Income Summary has a debit of 45,550 and a credit of 36,520. On the same date, D. Mau, Drawing has a debit balance of 12,000 and D. Mau, Capital had a beginning credit balance of 63,410. a. Journalize the entries to close the remaining temporary accounts. b. What is the new balance of D. Mau, Capital after closing the remaining temporary accounts? Show your calculations.Determining an Ending Account Balance Jessies Accounting Services was organized on June 1. The company received a contribution of $1,000 from each of the two principal owners. During the month, Jessies Accounting Services provided services for cash of $1,400 and services on account for $450, received $250 from customers in payment of their accounts, purchased supplies on account for $600 and equipment on account for $1,350, received a utility bill for $250 that will not be paid until July, and paid the full amount due on the equipment. Use a T account to determine the companys Cash balance on June 30.For each of the following accounts, identify whether it would be closed at year-end (yes or no) and on which financial statement the account would be reported (Balance Sheet, Income Statement, or Retained Earnings Statement). A. Accounts Payable B. Accounts Receivable C. Cash D. Dividends E. Fees Earned Revenue F. Insurance Expense G. Prepaid Insurance H. Supplies
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