COLLEGE ACCOUNTING (LL)W/ACCESS>CUSTOM<
4th Edition
ISBN: 9781260255157
Author: Haddock
Publisher: MCG CUSTOM
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Question
Chapter 13, Problem 6CSR
To determine
Prepare the closing entry needed to close the income summary for the given transactions.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
A business had the following amounts of assets and liabilities at the beginning and end of a recent year:
Assets
Liabilities
Beginning of the year
$
84,000
$
36,000
End of the year
126,000
55,000
Determine the profit earned or net loss incurred by the business during the year under each of the following unrelated assumptions:
The owner made no additional investments in the business during the year but withdrew $5,050 per month to pay personal living expenses.
The net income of Plum Consultancy is $500,000. The company has passed the closing entries for revenue and expense accounts. Which of the following is the closing entry to transfer the net income?
a. A debit to Income Summary for $500,000 and a credit to Capital for $500,000
b. A debit to Consulting Revenue for $500,000 and a credit to Capital for $500,000
c. A debit to Capital for $500,000 and a credit to Consulting Revenue for $500,000
d. A debit to Capital for $500,000 and a credit to Income Summary for $500,000
The income statement of a proprietorship for the month of February indicates a net income of $17,500. During the same period, the owner withdrew $25,500 in cash from the business for personal use.Would it be correct to say that the business had incurred a net loss of $8,000during the month? Discuss.
Chapter 13 Solutions
COLLEGE ACCOUNTING (LL)W/ACCESS>CUSTOM<
Ch. 13 - Why are financial statements prepared in...Ch. 13 - What is the distinction between current...Ch. 13 - Prob. 1.3SRQCh. 13 - Which of the following is not a current asset? a....Ch. 13 - How should purchases returns and allowances be...Ch. 13 - Assume that a business listed the Freight In...Ch. 13 - Why do adjusting entries need detailed...Ch. 13 - Which adjusting entries should be reversed?Ch. 13 - Prob. 2.3SRQCh. 13 - A reversing entry is made for an end-of-period...
Ch. 13 - Prob. 2.5SRECh. 13 - At the end of the previous accounting period, an...Ch. 13 - Prob. 1CSRCh. 13 - Prob. 2CSRCh. 13 - Prob. 3CSRCh. 13 - Prob. 4CSRCh. 13 - Which of the following should have a debit balance...Ch. 13 - Prob. 6CSRCh. 13 - Prob. 7CSRCh. 13 - Prob. 1DQCh. 13 - Prob. 2DQCh. 13 - What are operating expenses?Ch. 13 - Prob. 4DQCh. 13 - Prob. 5DQCh. 13 - Prob. 6DQCh. 13 - Prob. 7DQCh. 13 - Prob. 8DQCh. 13 - Prob. 9DQCh. 13 - Prob. 10DQCh. 13 - Prob. 11DQCh. 13 - Prob. 12DQCh. 13 - Prob. 13DQCh. 13 - Prob. 14DQCh. 13 - Prob. 15DQCh. 13 - Prob. 16DQCh. 13 - Prob. 17DQCh. 13 - Gomez Company had a current ratio of 2.0 in 2018...Ch. 13 - Prob. 1ECh. 13 - Prob. 2ECh. 13 - The worksheet of Bridgets Office Supplies contains...Ch. 13 - Prob. 4ECh. 13 - Prob. 5ECh. 13 - Prob. 6ECh. 13 - Prob. 7ECh. 13 - The Adjusted Trial Balance section of the...Ch. 13 - Prob. 9ECh. 13 - Prob. 10ECh. 13 - Superior Hardwood Company distributes hardwood...Ch. 13 - Good to Go Auto Products distributes automobile...Ch. 13 - Obtain all data necessary from the worksheet...Ch. 13 - Obtain all data that is necessary from the...Ch. 13 - Prob. 5PACh. 13 - ComputerGeeks.com is a retail store that sells...Ch. 13 - Hog Wild is a retail firm that sells motorcycles,...Ch. 13 - Prob. 3PBCh. 13 - Prob. 4PBCh. 13 - The data below concerns adjustments to be made at...Ch. 13 - Programs Plus is a retail firm that sells computer...Ch. 13 - Teagan Fitzgerald is the owner of Newport Jewelry,...Ch. 13 - Prob. 1MFCh. 13 - Spectrum Company had an increase in sales and net...Ch. 13 - Prob. 3MFCh. 13 - Prob. 4MFCh. 13 - Prob. 5MFCh. 13 - Prob. 6MFCh. 13 - Prob. 7MFCh. 13 - It is standard accounting procedures, or GAAP, to...Ch. 13 - McCormick Company, Incorporated, is a global...Ch. 13 - The Fashion Rack is a retail merchandising...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- After the first two closing entries are made, Income Summary has a debit balance of $22,750. What does this indicate about the companys net income or loss?arrow_forwardThe Accounting Equation Using the accounting equation, answer each of the following independent questions. Burlin Company starts the year with $100,000 in assets and $80,000 in liabilities. Net income for the year is $25,000, and no dividends are paid. How much is owners equity at the end of the year? Chapman Inc. doubles the amount of its assets from the beginning to the end of the year. Liabilities at the end of the year amount to $40,000, and owners equity is $20,000. What is the amount of Chapmans assets at the beginning of the year? During the year, the liabilities of Dixon Enterprises triple in amount. Assets at the beginning of the year amount to $30,000, and owners equity is $10,000. What is the amount of liabilities at the end of the year?arrow_forwardWrite the third closing entry to transfer the net income or net loss to the P. Hernandez, Capital account, assuming the following: a. A net income of 3,842 during the first quarter (Jan.Mar.) b. A net loss of 1,781 during the second quarter (Apr.Jun.)arrow_forward
- 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. Retained Earnings B. Prepaid Rent C. Rent Expense D. Rent Revenue E. Salaries Expense F. Salaries Payable G. Supplies Expense H. Unearned Rent Revenuearrow_forwardThe following balances were taken from the Ramirez Company ledger at the end of the period: Retained Earnings 125,000 Dividends 15,000 Service Revenue 400,000 Salary Expense 220,000 Utilities Expense 35,000 Rent Expense 75,000 Miscellaneous Expense 22,000 Prepare the journal entries required to close the accounts. You may submit a file to respond to this question if that is easier.arrow_forwardA) Coffee shop lists its total liabilities as of today as OMR 85,000 and its equity as OMR 25,000. Requirements: Calculate the business total assets using the accounting equation. If the capital account only had 10,000 at the beginning of the year and the owner made no withdrawals, did the business make a profit or loss this year and by what amount?arrow_forward
- Choose the letter of answer At the start of the period, a business has total assets of ₱500,000 and total liabilities of ₱300,000. During the period, the business earned total income of ₱1,000,000 and total expenses of ₱640,000. No additional investments or withdrawals were made by the owner. Total assets at the end of the period were ₱830,000. How much is the total liabilities at the end of the period?A. 280,000B. 270,000.C. 260,000D. 240,000 At the beginning of the period, a business has accounts payable of ₱200,000. During the period, the total debits and credits to the accounts payable account were ₱100,000 and ₱70,000, respectively. How much is the ending balance of accounts payable?a. 230,000b. 170,000c. 370,000d. 30,000 Cost of goods sold is debited each time a sale is made under which of the following inventory systems?a. Perpetual systemb. COGS systemc. Periodic systemd. Perpetual and Periodic systemarrow_forwardTara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $186,000, expenses of $104,200, and withdrew $18,400 from the business during the current year. The owner's capital account before closing had a balance of $298,000. The ending owner's capital balance after closing is: __ $186,000 __ $63,400 __ $81,800 __ $361,400 __ $379,800arrow_forwardWhat’s More Direction: In separate sheet of paper, prepare a single-step approach Statement of Comprehensive Income using your complete name as the name of the business and use the present date. Use the following accounts in the table below with its corresponding amount. Loss from Law Suit 1,500 Advertising Expense 2,000 Sales Revenue 100,000 Gain on Sale of Assets 3,000 Cost of Goods Sold 75,000 Commission Expense 5,000 Interest Expense 500 Office Supplies Expense 3,500 Interest Revenues 5,000 Office Equipment Expense 2,500 Required: 1. Determine the amount of total revenue. 2. Determine the amount of total expenses. 3. Determine the amount of net income/net loss.arrow_forward
- A business had the following amounts of assets and liabilities at the beginning and end of a recent year: Assets Liabilities Beginning of the year $ 84,000 $ 36,000 End of the year 126,000 55,000 Determine the profit earned or net loss incurred by the business during the year under each of the following unrelated assumptions: The owner withdrew $4,100 per month to pay personal living expenses and invested an additional $81,000 cash in the business.arrow_forwardDave Ryan is the owner and operator of Ryan's Arcade. At the end of its accounting period, December 31, Ryan's Arcade has assets of $639,920 and liabilities of $225,490. Using the accounting equation, determine the following amounts: a. Owner's equity as of December 31 of the current year.$_______________ b. Owner's equity as of December 31 at the end of the next year, assuming that assets increased by $82,610 and liabilities increased by $17,300 during the year.$_________________arrow_forwardThe ledger of Crane Company contains the following balances: Owner’s Capital $29,200, Owner’sDrawings $2,700, Service Revenue $50,000, Salaries and Wages Expense $27,400, and SuppliesExpense $7,100.The closing entries are as follows:(1) Close revenue accounts.(2) Close expense accounts.(3) Close net income/(loss).(4) Close drawings.Enter the balances in T-accounts, post the closing entries in the order presented in the problemand use the numbers as a referencearrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College PubCentury 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage
Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
College Accounting (Book Only): A Career Approach
Accounting
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:South-Western College Pub
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:9781337679503
Author:Gilbertson
Publisher:Cengage
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning
The accounting cycle; Author: Alanis Business academy;https://www.youtube.com/watch?v=XTspj8CtzPk;License: Standard YouTube License, CC-BY