MyLab Accounting with Pearson eText -- Access Card -- for Horngren's Accounting, The Financial Chapters
12th Edition
ISBN: 9780134490397
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 4, Problem E4.23E
Determining the effects of closing entries on the Owner, Capital account
Learning Objective 3
McGregor Insurance Agency started the year with a beginning capital balance of $27,500. During the year, McGregor insurance Agency earned $34,000 of service Revenue and incurred $23,500 of various expenses. McGregor withdrew $12,000 from the business. After the closing entries are recorded and posted, what will be the balance of McGregor, Capital?
Expert Solution & Answer
Learn your wayIncludes step-by-step video
schedule02:00
Students have asked these similar questions
. (Learning Objective 5: Make closing entries and calculate net income) The adjustedtrial balance of Amana Corporation at December 31 shows that sales revenue for the year was$513,000 and other revenue was $37,000. Cost of goods sold for that same period was $256,000,while other expenses totaled $185,000. The corporation declared and paid dividends of $12,000during the year. The balance of retained earnings before closing entries was $457,000.1. Prepare the closing entries for revenues, expenses, and dividends for the year.2. What was net income for the year?3. What is the ending balance of retained earnings after the closing entries are posted?
Learning Objectives 4, 5: Journalize and post transactions; construct and use atrial balance) Olivia Matthews, Certified Public Accountant, operates as a professional corporation (P.C.). The business completed these transactions during the first part of May 2018:May Received $12,000 cash from Matthews, and issued common stock to her.Paid monthly oce rent, $500.Paid cash for a desktop computer, $1,800, with the computer expected toremain in service for five years.Purchased oce furniture on account, $6,000, with the furniture projectedto last for five years.Purchased supplies on account, $900.Performed tax services for a client and received cash for the full amountof $600.Received bill and paid utility expenses, $750.Performed consulting services for a client on account, $3,100.2234591218Requirements1. Journalize the transactions for Olivia Matthews, Certified Public Accountant. Explanationsare not required.2. Post to the T-accounts. Key all items by date and determine the ending balance…
E3-25A. (Learning Objective 5: Close the books) Prepare the closing entries from thefollowing selected accounts from the records of North Pole Enterprises at December 31, 2018:Cost of services sold............ $14,800Accumulated depreciation... 41,100Selling, general, andadministrative expenses.... 6,200Retained earnings,December 31, 2017......... 2,000Service revenue....................... $32,200Depreciation expense ............. 4,100Other revenue ........................ 1,000Dividends declared................. 500Income tax expense ................ 900Income tax payable ................ 600How much net income did North Pole Enterprises earn during 2018? Prepare a T-account forRetained Earnings to show the December 31, 2018, balance of Retained Earnings
Chapter 4 Solutions
MyLab Accounting with Pearson eText -- Access Card -- for Horngren's Accounting, The Financial Chapters
Ch. 4 - Assets are listed on the balance sheet in the...Ch. 4 - Which of the following accounts would be included...Ch. 4 - Which situation indicates a net loss within the...Ch. 4 - Which of the following accounts is not closed?...Ch. 4 - What do closing entries accomplish? Learning...Ch. 4 - Which of the following is not a closing entry?...Ch. 4 - Which of the following accounts may appear on a...Ch. 4 - 8. Which of the following steps of the accounting...Ch. 4 - Clean Water Softener Systems has Cash of $600,...Ch. 4 - Which of the following statements concerning...
Ch. 4 - What document are financial statements prepared...Ch. 4 - What does the income statement report?Ch. 4 - Prob. 3RQCh. 4 - Prob. 4RQCh. 4 - Why are financial statements prepared in a...Ch. 4 - Prob. 6RQCh. 4 - Prob. 7RQCh. 4 - Prob. 8RQCh. 4 - Prob. 9RQCh. 4 - How could a worksheet help in preparing financial...Ch. 4 - If a business had a net loss for the year, where...Ch. 4 - Prob. 12RQCh. 4 - What are temporary accounts? Are temporary...Ch. 4 - What are permanent accounts? Are permanent...Ch. 4 - How is the Income Summary account used? Is it a...Ch. 4 - Prob. 16RQCh. 4 - If a business had a net loss for the year, what...Ch. 4 - What types of accounts are listed on the...Ch. 4 - Prob. 19RQCh. 4 - What is the current ratio, and how is it...Ch. 4 - Prob. 21ARQCh. 4 - Preparing an income statement Learning Objective 1Ch. 4 - Preparing a statement of owner’s equity. Learning...Ch. 4 - Preparing a balance sheet (unclassified, account...Ch. 4 - Preparing a balance sheet (classified, report...Ch. 4 - Classifying balance sheet accounts Learning...Ch. 4 - Prob. S4.6SECh. 4 - Prob. S4.7SECh. 4 - Determine net loss using a worksheet Learning...Ch. 4 - Identifying temporary and permanent accounts...Ch. 4 - Prob. S4.10SECh. 4 - Posting closing entries directly to Taccounts...Ch. 4 - S412 Identifying accounts included on a...Ch. 4 - Identifying steps in the accounting cycle Learning...Ch. 4 - Calculating the current ratio Learning Objective 6...Ch. 4 - Journalizing reversing entries Learning Objective...Ch. 4 - E416 Preparing the financial statements The...Ch. 4 - Classifying balance sheet accounts Learning...Ch. 4 - Preparing a classified balance sheet and...Ch. 4 - Preparing a worksheet Learning Objective 2: Title...Ch. 4 - Preparing financial statements from the completed...Ch. 4 - Preparing closing entries from an adjusted trial...Ch. 4 - Preparing closing entries from T-accounts Learning...Ch. 4 - Determining the effects of closing entries on the...Ch. 4 - Preparing a worksheet and closing entries Learning...Ch. 4 - Preparing closing entries from an adjusted trial...Ch. 4 - Preparing a worksheet, closing entries, and a...Ch. 4 - Journalizing reversing entries. Learning Objective...Ch. 4 - Journalizing reversing entries Leaning Objectives...Ch. 4 - Preparing financial statements including a...Ch. 4 - Preparing financial statements including a...Ch. 4 - Preparing a worksheet, financial statements, and...Ch. 4 - Completing the accounting cycle from adjusting...Ch. 4 - Completing the accounting cycle from journal...Ch. 4 - Preparing adjusting entries and reversing entries...Ch. 4 - Preparing financial statements including a...Ch. 4 - Preparing financial statements including a...Ch. 4 - Preparing a worksheet financial statements, and...Ch. 4 - Completing the accounting cycle from adjusting...Ch. 4 - Completing the accounting cycle from journal...Ch. 4 - Preparing adjusting entries and reversing entries...Ch. 4 - Using Excel to prepare financial statements,...Ch. 4 - Completing the accounting cycle from adjusted...Ch. 4 - Completing the accounting cycle from adjusted...Ch. 4 - COMPREHENSIVE PROBLEMS Comprehensive Problem 1 for...Ch. 4 - COMPREHENSIVE PROBLEMS Comprehensive Problem 1 for...Ch. 4 - COMPREHENSIVE PROBLEMS Comprehensive Problem 1 for...Ch. 4 - COMPREHENSIVE PROBLEMS Comprehensive Problem 1 for...Ch. 4 - COMPREHENSIVE PROBLEMS Comprehensive Problem 1 for...Ch. 4 - COMPREHENSIVE PROBLEMS Comprehensive Problem 1 for...Ch. 4 - COMPREHENSIVE PROBLEMS Comprehensive Problem 1 for...Ch. 4 - COMPREHENSIVE PROBLEMS Comprehensive Problem 1 for...Ch. 4 - COMPREHENSIVE PROBLEMS Comprehensive Problem 1 for...Ch. 4 - Comprehensive Problem 2 for Chapters 1 —4 This...Ch. 4 - Comprehensive Problem 2 for Chapters 1 —4 This...Ch. 4 - Comprehensive Problem 2 for Chapters 1 4 This...Ch. 4 - Comprehensive Problem 2 for Chapters 1 4 This...Ch. 4 - Comprehensive Problem 2 for Chapters 1 4 This...Ch. 4 - Comprehensive Problem 2 for Chapters 1 4 This...Ch. 4 - Comprehensive Problem 2 for Chapters 1 4 This...Ch. 4 - Comprehensive Problem 2 for Chapters 1 4 This...Ch. 4 - Prob. 4.1TIATCCh. 4 - Prob. 4.1EICh. 4 - Prob. 4.1FSC
Additional Business Textbook Solutions
Find more solutions based on key concepts
Calculate retained earnings balance. (LO 5). Suppose Hillard Company started the year with a balance of $450,00...
Financial Accounting
Determining Acquisition Cost. Tarpley, Inc. acquired land for 400,000. The closing costs amounted to 11,000, an...
Intermediate Accounting (2nd Edition)
Under IFRS, how do firms account for convertible debt?
Intermediate Accounting
What is a compensating balance and how does it affect the interest rate on a line of credit?
Construction Accounting And Financial Management (4th Edition)
Use the information from the previous exercises involving JJ Manufacturing to determine their break-even point ...
Principles of Accounting Volume 2
Define key terms (Learning Objectives 1, 2, 3, 4, and 5) Complete the following statements with one of the term...
Managerial Accounting (5th Edition)
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
- (Learning Objective 2: Show the impact of business transactions on the accounting equation) Dr. Helen Samoa opened a medical practice specializing in physical therapy.During the first month of operation (December), the business, titled Dr. Helen Samoa, Professional Corporation (P.C.), experienced the following events:Samoa invested $150,000 in the business, which in turn issued its commonstock to her.The business paid cash for land costing $64,000. Samoa plans to buildan oce building on the land.The business purchased medical supplies for $2,400 on account.Dr. Helen Samoa, P.C., ocially opened for business.During the rest of the month, Samoa treated patients and earned servicerevenue of $9,800, receiving cash for half the revenue earned.The business paid cash expenses: employee salaries, $3,600; ocerent, $900; utilities, $400.The business sold medical supplies to another physician for cost of $1,000 andreceived cash.The business borrowed $34,000, signing a note payable to the…arrow_forwardLearning Objective 2: Show the impact of business transactions on the accounting equation) Dr. Char Morin opened a medical practice specializing in surgery. During thefirst month of operation (July), the business, titled Dr. Char Morin, Professional Corporation(P.C.), experienced the following events:Morin invested $155,000 in the business, which in turn issued its commonstock to her.The business paid cash for land costing $62,000. Morin plans to buildan oce building on the land.The business purchased medical supplies for $1,500 on account.Dr. Char Morin, P.C., ocially opened for business.During the rest of the month, Morin treated patients and earned servicerevenue of $9,100, receiving cash for half the revenue earned.The business paid cash expenses: employee salaries, $3,300; ocerent, $1,400; utilities, $400.The business sold medical supplies to another physician for cost of $500 andreceived cash.The business borrowed $33,000, signing a note payable to the bank.The business paid…arrow_forward(Learning Objective 4: Journalize transactions) After operating for several months,architect Donovan Freeman completed the following transactions during the latter part of July:Borrowed $64,000 from the bank, signing a note payable.Performed services on account for clients totaling $17,300.Received $16,000 cash on account from clients.Received and paid a utility bill of $1,800.Paid monthly salaries of $10,000 to employees.Jul 1522282931Journalize the transactions of Donovan Freeman, Architect. Include an explanation with eachjournal entry.arrow_forward
- E3-21 Journalizing adjusting entries Learning Objective 3 Consider the following situations: Business receives $3,200 on January 1 for 10-month service contract for the period January 1 through October 31. Total salaries for all employees is $3,600 per month. Employees are paid on the 1st and 15th of the month. Work performed but not yet billed to customers for the month is $1,600. The company pays interest on its $16,000, 4% note payable of $53 on the first day of each month. Assume the company records adjusting entries monthly. Journalize the adjusting entries needed as of January 31.arrow_forward(Learning Objectives 3, 4: Evaluate business operations; construct and analyze anincome statement, a statement of retained earnings, and a balance sheet) The assets andliabilities of Full Moon Products, Inc., as of December 31, 2018, and revenues and expenses forthe year ended on that date are as follows:Equipment........................... $ 115,000Interest expense................... 10,000Interest payable ................... 2,800Accounts payable ................ 25,000Salary expense..................... 108,900Building............................... 405,000Cash.................................... 46,000Common stock.................... 26,100Land................................... $ 29,000Note payable...................... 99,200Property tax expense .......... 7,300Rent expense ...................... 41,000Accounts receivable............ 85,000Service revenue................... 451,600Supplies.............................. 6,200Utilities expense ................. 8,100Beginning…arrow_forward(Learning Objective 4: Journalize and post transactions) Orman Consulting performed services for a client who could not pay immediately. Orman expected to collect the$4,600 the following month. A month later, Orman received $2,100 cash from the client.1. Record the two transactions on the books of Orman Consulting. Include an explanation foreach transaction.2. Post to these T-accounts: Cash, Accounts Receivable, and Service Revenue. Compute eachaccount balance and denote it as Bal.arrow_forward
- (Learning Objective 4: Record and report current liabilities) Travis Publishingcompleted the following transactions for one subscriber during 2018:Oct 1 Sold a one-year subscription, collecting cash of $1,800, plus sales tax of 10%.The subscription will begin on October 1.Nov 15 Remitted (paid) the sales tax to the state of South Carolina.Dec 31 Made the necessary adjustment at year-end.Requirement1. Journalize these transactions (explanations not required). Then report any liability on thecompany’s balance sheet at December 31, 2018.arrow_forward(Learning Objective 4: Journalize transactions) Journalize the following transactions. Include dates and a brief explanation for each journal entry.July 1: Issued common stock for $13,000July 5: Performed services on account for $8,000July 9: Purchased office supplies on account for $600July 10: Performed services for cash of $3,100July 12: Received payment in full for services performed on account from July 5July 24: Paid in full for office supplies purchased on July 9July 25: Received and paid monthly electric bill of $450July 30: Signed a note payable to purchase office furniture for $2,500July 31: Paid monthly payroll of $3,100arrow_forward(Learning Objective 5: Construct a trial balance) Assume that Harbor Marine Company reported the following summarized data at December 31, 2018. Accounts appear in noparticular order; dollar amounts are in millions.Other liabilities ..................... $ 220 Cash......................................Expenses ............................... 26Stockholders’ equity.............. 5Revenues............................... $37Other assets........................... 4Accounts payable .................. 6Prepare the trial balance of Harbor Marine Company at December 31, 2018. List the accountsin their proper order. How much was the company’s net income or net loss?arrow_forward
- (Learning Objective 3: Adjust the accounts for depreciation) Suppose that on January 1Sunbeam Travel Company paid cash of $50,000 for equipment that is expected to remain usefulfor four years. At the end of four years, the equipment’s value is expected to be zero.1. Make journal entries to record (a) the purchase of the equipment on January 1 and (b) annualdepreciation on December 31. Include dates and explanations, and use the following accounts:Equipment, Accumulated Depreciation—Equipment, and Depreciation Expense—Equipment.2. Post to the accounts and show their balances at December 31.3. What is the equipment’s book value at December 31?arrow_forwardS3-5. (Learning Objective 2: Apply the revenue and expense recognition principles)Identify the accounting concept or principle that gives the most direction on how to account foreach of the following situations:a. A utility bill is received on December 27 and will be paid next year. When should thecompany record utility expense?b. A physician performs a surgical operation and bills the patient’s insurance company. Itmay take three months to collect from the insurance company. Should the physicianrecord revenue now or wait until cash is collected?c. March has been a particularly slow month, and the business will have a net loss for thesecond quarter of the year. Management is considering not following its customarypractice of reporting quarterly earnings to the public.d. Salary expense of $48,000 is accrued at the end of the period to measure incomeproperly.e. A construction company is building a highway system, which will take four years.When should the company record the revenue it…arrow_forwardP3-59A. (Learning Objective 3: Adjust the accounts) Journalize the adjusting entry neededon December 31, the end of the current accounting period, for each of the following independent cases affecting Castaway Corporation. Include an explanation for each entry.a. The details of Prepaid Insurance are as follows:Prepaid Insurance2,9004,000JanMar 311 BalCastaway prepays insurance on March 31 each year. At December 31, $1,700 is still prepaid.b. Castaway pays employees each Friday. The amount of the weekly payroll is $6,100 fora five-day work week. The current accounting period ends on a Wednesday.c. Castaway has a note receivable. During the current year, Castaway has earned accruedinterest revenue of $700 that it will collect next year.d. The beginning balance of supplies was $3,000. During the year, Castaway purchasedsupplies costing $6,200, and at December 31 supplies on hand total $2,200.e. Castaway is providing services for Blue Whale Investments, and the owner of BlueWhale paid…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
The accounting cycle; Author: Alanis Business academy;https://www.youtube.com/watch?v=XTspj8CtzPk;License: Standard YouTube License, CC-BY