Provide closing entries and t accounts
Q: Which of the following journal entries is not applicable to real accounts? a. Correcting entries…
A: The real accounts of the business include all the assets including tangible and intangible assets.
Q: Give an example two accounts that do not require a closing entry and explain wh
A: Closing entry is type of journal entry which is essential to close all temporary accounts like…
Q: What two purposes are accomplished by recording closing entries?
A: Closing entry: It can be defined as a journal entry that is recorded at the closing of the…
Q: What is the last account that should be listed in the Post Closing Trial Balance? a. Income Summary…
A: Post-closing trial balance: After passing all the journal entries and the closing entries are made…
Q: What are journal entries called that bring the accounts up-to-date at the end of the accounting…
A: Journal entries are the primary recording makes in the books of account. All the transactions are…
Q: The recording of closing entries serves two objectives. What are they?
A: Introduction: Closing entry: It can be defined as a journal entry. A journal entry is made at the…
Q: Give an example of two accounts that do not require a closing entry and why.
A: Closing entry is a journal entry which is prepared at the end of year to close all the temporary…
Q: Which one of the following is used to prepare ledger account? a. Transactions b. Events c. Income…
A: The right answer is option d. Journal is the primary book of accounting which recognizes all…
Q: Which of these account types assets, liabilities, equity, revenue, expense, dividend are debited in…
A: Permanent accounts (Real accounts) These are accounts whose balances at the end of the current…
Q: do the income statement and the closing entries
A: Income Statement: The income statement reports the financial performance in terms of profit or loss…
Q: Which of the following is the order of steps to journalize an entry? O A. Record the transaction…
A: Journal entries refer to the recording of transactions in an appropriate way. With the help of…
Q: Why are closing entries required at the end of an accounting period?
A: Closing entries are used to close the nominal accounts of the company. All the nominal accounts are…
Q: Required: After the closing process has been completed, answer the following questions: What is the…
A: Closing entries are journal entries passed to close our all temporary accounts. Temporary accounts…
Q: How is the account Income Summary used during the closing process?
A: Discussion of the how Income Summary account used during the closing process as follows:-…
Q: Adjusting entries are: O a. Journal entries that are prepared to record the income statement…
A: The adjustment entries are prepared to adjust the expenses and revenues of the current year.
Q: Would the following account appear on the Post-Closing Trial Balance? Income from Services
A: Post-closing trial balance: The post-closing trial balance is a summary of all ledger accounts, and…
Q: How do accrued but unpaid expenses affect the balance sheet?
A: Balance sheet is defined as the financial statement which records the assets, shareholders' equity…
Q: al entry, t-accounts, trial balance, and balance sheet
A: Transactions are first recorded in journal entries which affect two ledgers and then transferred to…
Q: The _____ is prepared after closing entries are posted to prove the equality of debits and credits
A: Closing entries are reported at the conclusion of the year to close the temporary accounts.
Q: Which of the following accounts may appear on a post-closing trial balance? a. Cash, Salaries…
A: Definition: Post-closing trial balance: The post-closing trial balance is prepared after preparing…
Q: Which of the following accounts should not appear on the post-closing trial balance? Select one:…
A: Trial Balance: Trial balance is a statement in which the closing balance of all ledger accounts is…
Q: Revenue and expenses closing entries and Income statement.
A: Formula: Net income = Revenues - Expenses
Q: Identify which of the following accounts would be included in a post-closing trial balance. Land
A: Post closing trial balance is the summary of ledger accounts balances after all the adjustments. It…
Q: Why on closing journal entries you debit revenue and captial then credit expenses and drawing…
A: Closing entries are used to transfer the balance from a temporary account to a permanent account. We…
Q: After all closing entries have been posted, the revenue account will have a balance of * Your answer
A: Closing entries are entries that are recorded at the end of the period for closing revenues,…
Q: Calculating balance of any account, after posting all entries in ledger account, is known as O a.…
A: The numerical has covered the concept of ledger accounts. The Ledger accounts have done in 'T' form…
Q: Which of the following accounts may appear on a post-closing trial balance? Cash, Salaries Payable,…
A:
Q: For each account, identify whether it is included in a post- closing trial balance. Included in…
A: Closing Entries - Closing entries are required to close the temporary accounts after making…
Q: Transactions are first recorded in a O A. ledger O B. journal O C. trial balance O D. chart of…
A: The transaction, which is measurable in monetary terms, is an economic event with a third party…
Q: Kellogg's journal entry to close the revenue and expense accounts should include a:
A: For the closure of revenues and expense accounts, net income for the period should be transferred to…
Q: A. list all of the steps in the accounting cycle? B.Explain th e steps that must be taken for…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: It is the process of transferring the entries recorded in the journal to the respective accounts…
A: After journalizing, all the transactions entries are posted into the respective general ledger…
Q: Is "Owner's Capital" a temporary or permanent account? Please explain what happens to this account…
A: SOLUTION- PERMANENT ACCOUNTS ARE ACCOUNTS THAT YOU DON'T CLOSE AT THE END OF YOUR ACCOUNTING…
Q: Is adjusting, closing reversing entries work sheet same thing as trial balance
A: A closing entry is a journal entry that is made at the end of an accounting period to transfer…
Q: Journal lists transactions in which order? Increasing O Alphabetical O Chronological O Decreasing O…
A: The journal entries are prepared to record daily transactions of the business on regular basis.
Q: Which of the following statements is correct about closing entries?
A: The answer for the multiple choice question and relevant explanation are presented hereunder : At…
Q: When an entry is made in the general journal, accounts to be increased should be listed first. O…
A: Introduction: General Journal: A general journal is a diary that contains all of a company's…
Q: Explain the closing process in accounting. Questions to consider when answering this are: Why is it…
A: Accounting is a process of recording all the financial transactions of a business so that the…
Q: A list of accounts and their balances at a given time is called a(n) Select one: a. posting.…
A: The trial balance reflects khe ledgers and the balance of the same. The trial Balance at a…
Q: Which of the following best distinguishes adjusting entries from closing entries? a. In adjusting…
A: Adjusting entry is the type of journal entry that is used to record the unrecognized income or…
Q: Adjusting entries are: a. Journal entries that are prepared to record the income statement accounts.…
A: Adjusting entries are prepared at the end of the accounting period to ensure the accrual base…
Q: Which of the following accounts ordinarily appears in the post-closing trial balance? Hint:…
A: The financial statement shows the financial data of the company that is used by various financial…
Q: Which of these is the first step in the closing process?(a) Close revenue account(s). (c) Close the…
A: Introduction:- A closing entries are made at the end of the accounting period to transfer of all the…
Q: If a journal entry includes a debit or credit to the retained earnings account, it is most likely…
A: Journal: Recording of a business transaction in a chronological order.
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Provide closing entries and t accounts
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- Unusual income statement items Assume that the amount of each of the following items is material to the financial statements. Classify each item as either normally recurring (NR) or unusual (U) items. If unusual item, then specify if it is a discontinued operations item (DO). a. Interest revenue on notes receivable. b. Gain on sale of segment of the company's operations that manufactures bottling equipment. c.Loss on sale of investments in stocks and bonds. d. Uncollectible accounts expense. e. Uninsured flood loss. (Hood insurance is unavailable because of periodic Hooding in the area.)Prince Corporations accounts provided the following information at December 31, 2019: What should be the current balance of retained earnings? a. 520,000 b. 580,000 c. 610,000 d. 670,000Recording Various Liabilities Glenview Hardware had the following transactions that produced liabilities during 2020: a. Purchased merchandise on credit for $30,000. ( Note: Assume a periodic inventory system.) b. Year-end wages of $10,000 were incurred, but not paid. Related federal income taxes of $1,200, Social Security of $620 (employee portion), and Medicare taxes of $145 were with-held from employees. c. Year-end estimated income taxes payable, but unpaid, for the year were $42,850. d. Sold merchandise on account for $1,262, including state sales taxes of S48. ( Note: Assume a periodic inventory system.) e. Employers share of Social Security and Medicare taxes for the period were $620 and $145, respectively. f. Borrowed cash under a 90-day, 9%, $25,000 note. Required: Prepare the entry to record each of these transactions (treat each transaction independently).
- Ratio Analysis Rising Stars Academy provided the following information on its 2019 balance sheet and state mcnt of cash flows: Long-term debt S 4,400 Interest expense S 398 Total liabilities 8,972 Net income 559 Total assets 38,775 Interest payments 432 Total equity 29,803 Cash flows from operations 1.015 Operating income 1.223 Income tax expenses 266 Income taxes paid 150 Required: Calculate the following ratios for Rising Stars: (a) debt to equity, (b) debt to total assets, (c) long-term debt to equity, (d) times interest earned (accrual basis), and (e) times interest earned (cash basis). (Note: Round answers to three decimal places.) CONCEPTUAL CONNECTION Interpret these results. 3.What does it mean if a bond is callableTemporary and Permanent Differences Lin has just completed its first year of operations and has a number of differences between its pretax financial income and taxable income. The differences at the end of 2019 are as follows: a. Lin recorded 7,000 of interest revenue on municipal bonds during 2019. b. 15,000 of accrual-basis sales were recognized in income during 2019. They are expected to be received in cash during January 2020. c. Depreciation on machinery totaled 28,000 using straight-line depreciation for financial statements. Lins tax accountant recorded 36,000 of depreciation on the companys tax return. d. Lin was fined 3,000 for violating certain labor laws during 2019. Lin paid the fine during 2019 and agreed to ensure future violations would not occur. e. Bryant Corporation has agreed to rent space from Lin in 2020. In December 2019, Lin received 7,500 from Bryant in advance for rent. f. For 2019, Lin reported 9,500 of warranty expense on its income statement. The companys warranty liability at the end of 2019 was 6,250. Lin expects additional warranty costs to be paid during 2020. Required: 1. For each item, determine if it results in a temporary or permanent difference. If the item results in a temporary difference, determine if it results in a deferred tax asset or deferred tax liability. 2. For each item, determine if it initially results in pretax financial income being greater than or less than taxable income. 3. Next Level Discuss why permanent differences do not impact future periods taxable income and how these differences affect tax rates.Godo At May 31, 2019, FOR Deliveries reported the following amounts (in millions) in its financial statements:20192018Total Assets$ 70,000$ 68,000Total Liabilities46,20042,160Interest Expense736750Income Tax Expense155260Net Income7806,275 Required: 1. Compute the debt-to-assets ratio and times interest earned ratio for 2019 and 2018. 2-a. In 2019, were creditors providing a greater (or lesser) proportion of financing for FOR’s assets? 2-b. In 2019, was FOR more (or less) successful at covering its interest costs, as compared to 2018?
- On September 1, 2020, the account balances of Tom Cruise Repair, Inc. were asfollows.No Debit No Credit101 Cash £4,880 158 Accumulated DepreciationEquipment£2,100112 AccountsReceivable3,520 201 Accounts Payable 3,400126 Supplies 2,000 209 Unearned Service Revenue 1,400157 Equipment 18,000 212 Salaries and Wages Payable 500311 Share Capital-Ordinary 10,000320 Retained Earnings 11,000£28,400 £28,400During September, the following summary transactions were completed.Sept. 8 Paid £1,700 for salaries due employees, of which £1,200 is for September.10 Received £1,200 cash from customers on account.12 Received £3,400 cash for services performed in September.15 Purchased store equipment on account £3,000.17 Purchased supplies on account £1,200.20 Paid creditors £4,500 on account.22 Paid September rent £500.25 Paid salaries £1,050.27 Performed services on account and billed customers for services provided£1,600.29 Received £750 from customers for future service.Adjustment data consist of:1.…The following information is taken from Jennifer Corporation's financial statements: December 31 2021 2020 Cash $ 73,080 $ 31,320 Accounts receivable 118,320 92,800 Allowance for doubtful accounts (5,220) (3,596) Inventory 185,600 203,000 Prepaid expenses 8,700 7,888 Land 116,000 69,600 Buildings 341,040 283,040 Accumulated depreciation (37,120) (15,080) Patents 23,200 40,600 $823,600 $709,572 Accounts payable $ 104,400 $ 97,440 Accrued liabilities 62,640 73,080 Bonds payable 145,000 69,600 Common stock 116,000 116,000 Retained earnings―appropriated 92,800 11,600 Retained earnings―unappropriated 320,160 351,132 Treasury stock, at cost (17,400) (9,280) $823,600 $709,572 For 2021 Year Net income $90,828…The following information is taken from Jennifer Corporation's financial statements: December 31 2021 2020 Cash $ 73,080 $ 31,320 Accounts receivable 118,320 92,800 Allowance for doubtful accounts (5,220) (3,596) Inventory 185,600 203,000 Prepaid expenses 8,700 7,888 Land 116,000 69,600 Buildings 341,040 283,040 Accumulated depreciation (37,120) (15,080) Patents 23,200 40,600 $823,600 $709,572 Accounts payable $ 104,400 $ 97,440 Accrued liabilities 62,640 73,080 Bonds payable 145,000 69,600 Common stock 116,000 116,000 Retained earnings―appropriated 92,800 11,600 Retained earnings―unappropriated 320,160 351,132 Treasury stock, at cost (17,400) (9,280) $823,600 $709,572 For 2021 Year Net income…
- TRIAL balance dated Dec 31, 2019 MUSIC-IS-US, INCTRIAL BALANCEDECEMBER 31, 2018 cash …………………………………………………. $ 45,000Marketable securities…………………………. 25,000 Accounts receivable…………………………… 125,000Allowance for doubtful accounts………… $5,000Merchandise inventory……………………….. 250,000Office supplies................................................... 1,200Prepaid insurance…………………………………… 6,600 Building and fixtures…………………………… 1,791,000 Accumulated depreciation………………………. 800,000 Land…………………………………………………... 64,800Accounts payable…………………………………… 70,000Unearned customer deposits…………………… 8,000Income taxes payable………………………………. 75,000Capital stock…………………………………………. 1,000,000Retained…TRIAL balance dated Dec 31, 2019 MUSIC-IS-US, INCTRIAL BALANCEDECEMBER 31, 2018 cash …………………………………………………. $ 45,000Marketable securities…………………………. 25,000 Accounts receivable…………………………… 125,000Allowance for doubtful accounts………… $5,000Merchandise inventory……………………….. 250,000Office supplies................................................... 1,200Prepaid insurance…………………………………… 6,600 Building and fixtures…………………………… 1,791,000 Accumulated depreciation………………………. 800,000 Land…………………………………………………... 64,800Accounts payable…………………………………… 70,000Unearned customer deposits…………………… 8,000Income taxes payable………………………………. 75,000Capital stock…………………………………………. 1,000,000Retained…On August 1, 2020, the business accounts of Peter and Senen appear below:Assets Peter SenenCash P11,000 P22,354Accounts receivable 84,536 217,890Inventories 100,035 240,102Land 603,000 428,267Buildings 200,345 384,789Other Assets 22,000 23,600Total P1,020,916 P1,317,002Liabilities and CapitalAccounts payable P178,940 P243,650Notes payable 200,000 345,000Peter, Capital 641,976Senen, Capital 728,352Total P1,020,916 P1,317,002Peter and Senen agreed to form a partnership contributing their respective assets and liabilitiessubject to the following adjustments:Accounts receivable of P20,000 and P35,000 are uncollectible in Peter and Senen’s respectivebooks.Inventories of P5,500 and P6,700 are worthless in Peter and Senen’s respective booksOther Assets of P2,200 and P3,600 in Peter and Senen’s books are written off.After five days Ethel was offered to join Peter and Senen and will contribute for a 20% interestin the firm. They also agreed to divide profits and losses in the ratio of 4:4:2…
