What is a temporary account and which specific accounts or types of accounts are considered temporary?
What is a temporary account and which specific accounts or types of accounts are considered temporary?
(2) Is "Owner's Capital" a temporary or permanent account? Please explain what happens to this account during the closing process.
(3) Please
Please indicate which scenario you are answering and include the date for each. Assume the period ends December 31 for either scenario.
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Scenario A |
Scenario B |
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Cash $10,100 Accounts Receivable $7,300 Accounts Payable $1,172 A.A., Capital $14,300 A.A., Drawing $2,500 Service Revenue $5,816 Rental Revenue $3,082 Rent Expense $2,404 Wages Expense $1,603 Utilities Expense $401 Miscellaneous Expense $62 |
Cash $616,000 Accounts Receivable $444,750 Accounts Payable $249,450 B.B., Capital $880,000 B.B., Drawing $11,000 Fees Earned (Revenue) $520,400 Wages Expense $488,000 Rent Expense $65,000 Supplies Expense $11,200 Miscellaneous Expense $13,900
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