Explanation Closing entries: Closing entries are recorded in order to close the temporary accounts such as incomes and expenses by transferring them to the permanent accounts such as retained earnings . It is passed at the end of the accounting period, to transfer the final balance. Closing entry for revenue and expense accounts: Date Accounts title and Explanation Post Ref. Debit ($) Credit ($) October 31, 20Y3 Fees earned 213 Wages Expense 111 Rent Expense 12 Insurance Expense 10 Utilities Expense 6 Supplies Expense 4 Depreciation Expense 3 Miscellaneous Expense 2 Retained earnings (1) 65 (To close the revenue and expense accounts to retained earnings) Table (1) In this closing entry, revenue and expenses accounts are transferred to retained earnings account in order to bring the revenue and expense account balance to zero. Thus, debit the revenue account and credit the expense account...

15th Edition

ISBN: 9781337902663

Author: WARREN, Carl S.

Publisher: Cengage Learning,

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Chapter 4, Problem 25E

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Prepare the closing entries for Company ASS.

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Chapter 4, Problem 24E

Chapter 4, Problem 26E

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Problems 1. The following are all the steps in the accounting cycle. List them in the order in which they should be done. - Closing entries are journalized and posted to the ledger. - An unadjusted trial balance is prepared. - An optional end-of-period spreadsheet (work sheet) is prepared. - A post-closing trial balance is prepared. - Adjusting entries are journalized and posted to the ledger. - Transactions are analyzed and recorded in the journal. - Adjustment data are assembled and analyzed. - Financial statements are prepared. - An adjusted trial balance is prepared. - Transactions are posted to the ledger. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 2. The balances for the accounts listed below appeared in the Adjusted Trial Balance columns of the work sheet. Indicate whether each balance should be extended to (a) the Income Statement columns or (b) the…

teps in the Accounting Cycle Rearrange the following steps in the accounting cycle in proper sequence: a. Transactions are analyzed and recorded in the journal. b. An unadjusted trial balance is prepared. c. Transactions are posted to the ledger. d. Adjustment data are assembled and analyzed. e. An adjusted trial balance is prepared. f. Adjusting entries are journalized and posted to the ledger. g. An optional end-of-period spreadsheet is prepared. h. A post-closing trial balance is prepared. i. Financial statements are prepared. j. Closing entries are journalized and posted to the ledger.

Closing entries from an end-of-period spreadsheetBased on the data in Exercise 4-25, prepare the closing entries for Alert SecurityServices Co.

Chapter 4 Solutions

Financial And Managerial Accounting

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Prepare the closing entries for Company ASS.

Solution Summary: The author explains how the closing entries are recorded in order to close temporary accounts such as incomes and expenses by transferring them to permanent accounts.

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Chapter 4 Solutions