Principles of Accounting Volume 1
19th Edition
ISBN: 9781947172685
Author: OpenStax
Publisher: OpenStax College
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Textbook Question
Chapter 2, Problem 8EB
Here are facts for Hailey’s Collision Service for January.
Assuming no investments or withdrawals, what is the ending balance in the owners’ capital account?
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Which of the following accounts will. It be closed to the capital account at the end of the year ?
Fees earned
Utilities expense
Insurance expense
Prepaid insurance
From the list that follows, identify the accounts that should be closed to the owner's capital account at the end of the fiscal year.
unearned rent
supplies
wages expense
depreciation expense
building
Jackie Lindsay, Capital
fees earned
Land
accounts receivable
supplies expense
Jackie Lindsay, Drawing
The following list of balances was extracted from the books of Kai Jordan at 31 December 2020, the sole trader’s year end date. The bookkeeper was unable to extract the figure for the Capital account before catching the flu and having to take sick leave. However, the bookkeeper assured that all the other account balances are correct, which means that extracting trial balance will be able to solve the 'missing' Capital account balance.
Capital
?
Accounts payables
89,244
Accounts receivables
102,432
Accruals
14,136
Bad debts expense
17,076
Bank
26,952
Carriage in
6,624
Carriage out
8,544
Closing stock
53,880
Commissions received
1,824
Depreciation expense
79,824
Discounts allowed
22,380
Discounts received
9,300
Drawings
90,000
Equipment
540,000
Insurance
21,024
Interest expense
8,520
Loan
150,000
Motor Vehicles
180,000
Opening stock
47,700
Other payables
7,920…
Chapter 2 Solutions
Principles of Accounting Volume 1
Ch. 2 - Which of these statements is not one of the...Ch. 2 - Stakeholders are less likely to include which of...Ch. 2 - Identify the correct components of the income...Ch. 2 - The balance sheet lists which of the following? A....Ch. 2 - Assume a company has a $350 credit (not cash)...Ch. 2 - Which of the following statements is true? A....Ch. 2 - Owners have no personal liability under which...Ch. 2 - The accounting equation is expressed as ________....Ch. 2 - Which of the following decreases owners equity? A....Ch. 2 - Exchanges of assets for assets have what effect on...
Ch. 2 - All of the following increase owners equity except...Ch. 2 - Which of the following is not an element of the...Ch. 2 - Which of the following is the correct order of...Ch. 2 - The three heading lines of financial statements...Ch. 2 - Which financial statement shows the financial...Ch. 2 - Which financial statement shows the financial...Ch. 2 - Working capital is an indication of the firms...Ch. 2 - Identify the four financial statements and...Ch. 2 - Define the term stakeholders. Identify two...Ch. 2 - Identify one similarity and one difference between...Ch. 2 - Identify one similarity and one difference between...Ch. 2 - Explain the concept of equity, and identify some...Ch. 2 - Explain the difference between current and...Ch. 2 - Identify/discuss one similarity and one difference...Ch. 2 - Name the three types of legal business structure....Ch. 2 - What is the accounting equation? List two examples...Ch. 2 - Identify the order in which the four financial...Ch. 2 - Explain how the following items affect equity:...Ch. 2 - Explain the purpose of the statement of cash flows...Ch. 2 - For each independent situation below, calculate...Ch. 2 - For each independent situation below, calculate...Ch. 2 - For each independent situation below, calculate...Ch. 2 - For each independent situation below, place an (X)...Ch. 2 - For each of the following items, identify whether...Ch. 2 - For the items listed below, indicate how the item...Ch. 2 - Forest Company had the following transactions...Ch. 2 - Here are facts for the Hudson Roofing Company for...Ch. 2 - Prepare an income statement using the following...Ch. 2 - Prepare a statement of owners equity using the...Ch. 2 - Prepare a balance sheet using the following...Ch. 2 - For each independent situation below, calculate...Ch. 2 - For each independent situation below, calculate...Ch. 2 - For each independent situation below, calculate...Ch. 2 - For each of the following independent situations,...Ch. 2 - For each of the following items, identify whether...Ch. 2 - For the items listed below, indicate how the item...Ch. 2 - Gumbo Company had the following transactions...Ch. 2 - Here are facts for Haileys Collision Service for...Ch. 2 - Prepare an income statement using the following...Ch. 2 - Prepare a statement of owners equity using the...Ch. 2 - Prepare a balance sheet using the following...Ch. 2 - The following information is taken from the...Ch. 2 - Each situation below relates to an independent...Ch. 2 - The following information is from a new business....Ch. 2 - Each of the following situations relates to a...Ch. 2 - For each of the following independent...Ch. 2 - Olivias Apple Orchard had the following...Ch. 2 - Using the information in PA6, determine the amount...Ch. 2 - The following ten transactions occurred during the...Ch. 2 - The following information is taken from the...Ch. 2 - Each situation below relates to an independent...Ch. 2 - The following information is from a new business....Ch. 2 - Each of the following situations relates to a...Ch. 2 - For each of the following independent...Ch. 2 - Mateos Maple Syrup had the following transactions...Ch. 2 - Using the information in PB6, determine the amount...Ch. 2 - Choose three stakeholders (or stakeholder groups)...Ch. 2 - Assume you purchased ten shares of Roku during the...Ch. 2 - A trademark is an intangible asset that has value...Ch. 2 - For each of the following ten independent...Ch. 2 - The following historical information is from...
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Here are facts for the Hudson Roofing Company for December. Assuming no investments or withdrawals, what is the ending balance in the owners capital account?
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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 Revenue
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Considering the following events, determine which month the revenue or expenses would be recorded using the accounting method specified. a. Gerber Company uses the cash basis of accounting. Gerber prepays cash in May for insurance that only covers the following month, (June). b. Matthews and Dudley Attorneys uses the accrual basis of accounting. Matthews and Dudley Attorneys receives cash from customers in June for services to be performed in July. c. Eckstein Company uses the accrual basis of accounting. Eckstein prepays cash in October for rent that covers the following month, (October). d. Gerbino Company uses the cash basis of accounting. Gerbino makes a sale to a customer in February but does not expect payment until March.
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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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The following list of balances was extracted from the books of Kai Jordan at 31 December 2020, the sole trader’s year end date. The bookkeeper was unable to extract the figure for the Capital account before catching the flu and having to take sick leave. However, the bookkeeper assured that all the other account balances are correct, which means that extracting trial balance will be able to solve the 'missing' Capital account balance.
Capital
?
Accounts payables
89,244
Accounts receivables
102,432
Accruals
14,136
Bad debts expense
17,076
Bank
26,952
Carriage in
6,624
Carriage out
8,544
Closing stock
53,880
Commissions received
1,824
Depreciation expense
79,824
Discounts allowed
22,380
Discounts received
9,300
Drawings
90,000
Equipment
540,000
Insurance
21,024
Interest expense
8,520
Loan
150,000
Motor Vehicles
180,000
Opening stock
47,700
Other payables
7,920
Prepayments
6,384
Provision for depreciation - Equipment
162,000
Provision for…
arrow_forward
The following list of balances was extracted from the books of Kai Jordan at 31 December 2020, the sole trader’s year end date. The bookkeeper was unable to extract the figure for the Capital account before catching the flu and having to take sick leave. However, the bookkeeper assured that all the other account balances are correct, which means that extracting trial balance will be able to solve the 'missing' Capital account balance.
Capital
?
Accounts payables
89,244
Accounts receivables
102,432
Accruals
14,136
Bad debts expense
17,076
Bank
26,952
Carriage in
6,624
Carriage out
8,544
Closing stock
53,880
Commissions received
1,824
Depreciation expense
79,824
Discounts allowed
22,380
Discounts received
9,300
Drawings
90,000
Equipment
540,000
Insurance
21,024
Interest expense
8,520
Loan
150,000
Motor Vehicles
180,000
Opening stock
47,700
Other payables
7,920
Prepayments
6,384
Provision for depreciation - Equipment
162,000
Provision for…
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Owner's Drawing: $3,000
Owner's Capital (Begining Balance): $7,000
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Question:
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Close net income to Capital account?
Close revenue account?
Close drawings to the capital account?
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Which of the following account is not a temporary account while closing all temporary accounts In the closing process at the end of a financial year?
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