College Accounting (Book Only): A Career Approach
13th Edition
ISBN: 9781337280570
Author: Scott, Cathy J.
Publisher: South-Western College Pub
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Textbook Question
Chapter 5, Problem 3A
The post-closing
- a. Analyze the work and prepare a response to what you have reviewed.
- b. Journalize the closing entries.
- c. What is the net income or net loss?
- d. Is there an increase or a decrease in Capital?
- e. What would be the ending amount of Capital?
- f. What is the new balance of the post-closing trial balance?
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Students have asked these similar questions
Once closing entries have been entered in the general journal and posted to the ledger, what is the effect on the owner’s capital (or retained earnings) account?
Explain the purpose of a post-closing trial balance in your own words and answer this question: Is the post-closing trial balance mandatory as a step in the accounting cycle?
Reflect on this question: Assuming a company’s first year-end, would financial statements be affected if the closing process were not completed? Explain.
The following information is available for Zephyr Company before closing the accounts. After all of the closing, entries are made, what will be the balance in the Zephyr, Capital account?
Net Income $117,300
Zephyr, Capital $112,000
Zephyr, withdrawals $42,000
__ $117,300.
__ $229,300.
__ $262,600
__ $187,300.
__ $972,700.
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
Chapter 5 Solutions
College Accounting (Book Only): A Career Approach
Ch. 5 - What is the third step in the accounting cycle?...Ch. 5 - Which of the following accounts would be closed...Ch. 5 - If Income from Services had a 20,400 credit...Ch. 5 - Which of the following accounts would appear on a...Ch. 5 - Under the cash basis of accounting, which of the...Ch. 5 - Prob. 6QYCh. 5 - Number in order the following steps in the...Ch. 5 - List the steps in the closing procedure in the...Ch. 5 - What is the purpose of closing entries? What is a...Ch. 5 - What are real accounts? What are nominal accounts?...
Ch. 5 - What is the purpose of the Income Summary account?...Ch. 5 - What is the purpose of the post-closing trial...Ch. 5 - Write the third closing entry to transfer the net...Ch. 5 - Prob. 8DQCh. 5 - Prob. 9DQCh. 5 - Classify the following accounts as real...Ch. 5 - The ledger accounts after adjusting entries for...Ch. 5 - As of December 31, the end of the current year,...Ch. 5 - The Income Statement columns of the work sheet of...Ch. 5 - The Income Statement columns of the work sheet of...Ch. 5 - After all revenue and expenses have been closed at...Ch. 5 - Identify whether the following accounts would be...Ch. 5 - Considering the following events, determine which...Ch. 5 - Indicate with an X whether each of the following...Ch. 5 - Prepare a statement of owners equity for The...Ch. 5 - Prob. 1PACh. 5 - The partial work sheet for Ho Consulting for May...Ch. 5 - The account balances of Bryan Company as of June...Ch. 5 - Williams Mechanic Services prepared the following...Ch. 5 - Prob. 1PBCh. 5 - The partial work sheet for Emil Consulting for...Ch. 5 - The account balances of Miss Beverlys Tutoring...Ch. 5 - Toms Catering Services prepared the following work...Ch. 5 - Rather than going directly to college, some...Ch. 5 - Prob. 2ACh. 5 - The post-closing trial balance submitted to you by...Ch. 5 - You are preparing a post-closing trial balance for...Ch. 5 - The bookkeeper has completed a work sheet and has...Ch. 5 - This problem is designed to enable you to apply...Ch. 5 - This problem is designed to enable you to apply...Ch. 5 - After the adjusting entries are recorded and...
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