For example, at December 31, 20X2, the net book value of the truck is $50,000, consisting of $150,000 cost less $100,000 of accumulated depreciation. B. On December 31, 2017, what is the balance of the accumulated depreciation account? d. not be used, Which of the following accounts has a normal debit balance? c. debit income summary; credit Penny Pincher, drawing Answer the following questions about the closing process. FINANCING ALTERNATIVES The Severn Company plans to raise a net amount of 270 million to finance new equipment in early 2019. Accounts Receivable, Accumulated Depreciation, Accounts Payable D. on the left side of the Cash account and the left side of the Accounts Receivable account. closing entries are journalized and posted to the ledger A.$880. d. There may have been additional revenue made during the year reflected in the balance. A. journalize the closing entries. liabilities b. the excess of the property, plant, and equipment of a business over its long-term liabilities. An end-of-period spreadsheet is prepared. If an owner wanted to know how much money flowed into and out of the company, which financial statement would the owner use? JACKSONVILLE, Fla., Feb. 28, 2023 /PRNewswire/ Black Knight, Inc. (), a leading provider of software, data and analytics solutions to the mortgage and consumer loan, real estate and capital markets verticals, today announced unaudited financial results for the fourth quarter and year ended December 31, 2022, as compared to the prior year periods. b. accumulated depreciation, equipment B. (c) Report the \text { Amount of } \\ Randomly listed below are the steps to preparing a Trial Balance: D. Debit B. Conway, Capital $9,000 and credit Salary Expense $2,000; credit Rent Expense $3,000; credit Supplies Expense $4,000. Debit Credit Cash $2,260 Accumulated Depreciation-Equipment $1,860 Accounts Receivable 4,110 Accounts Payable 2,460 Supplies 1,660 Unearned Revenue 1,060 Equipment 11,860 Salaries Payable 560 J. Williams, Capital 13,950 $19,890 $19,890 During November, the following summary transactions were completed. Use at least one each of the following factors: AGi%,n;PAi%,n;FAi%,n;FPi%,n;PFi%,nA|G i \%, n ; P| A i \%, n ; F|A i \%, n ; F| P i \%, n ; P \mid F i \%, n a. c. the excess of the current assets of a business over its current liabilities. \text{Total assets} & 843,000 & 911,000\\ a. recorded in the income statement debit column D. are recorded in the journal and then posted to the general ledger accounts. (a) Perform a regression using MegaStat or Excel. a. Nominal accounts C. Rent Expense.. 8,000 AmountofInvestment$8,00012,00015,50035,500Rate20%15%12%10%Time15years10years5years2yearsValueattheEndofthePeriod????. Accumulated depreciation: xxxx C. revenue and expense accounts. C. Accumulated Depreciation--Equipment is presented in the Liabilities section of a balance sheet. Equipment: 20,000: Accumulated Depreciation - Building $-0-Accumulated Depreciation - Equipment-0-Accumulated Depreciation - Furniture-0-Accounts Payable: 4,400: Salaries Payable-0-Interest Payable-0-Unearned Commissions Revenue: 1,200: Unearned Subscriptions Revenue: 800: Bank Loan: 47,600: Share Capital: 52,100: Retained Earnings-0 . D. 5. Unearned Revenue 6,375 All transactions are recorded first in the general ledger and then they are journalized in the journal. d. income summary and crediting fees income, The owner's drawing account is closed by debiting: A physical count of supplies at December 31 shows $690 of supplies . B. . 4. a. F 15. \end{array} A written promise that a customer will pay a fixed amount of principal plus interest by a certain date in the future. C. debit to Equipment for $500 and a credit to Cash for $500. Income statement credit column Study with Quizlet and memorize flashcards containing terms like The journal entry to close the Fees Earned, $750, and Rent Revenue, $175, accounts during the year-end closing process would be: A. Dec. 31 Fees Earned 750 Rent Revenue 175 Income Summary 925 B. Dec. 31 . Ans.1: True Ans.2: False as general ledger accounts may not have balances. a. the owner's drawing account and crediting the owner's capital account B. will be understated. Subscriptions Earned 11,500. C. $460. If a business has a net loss for a fiscal period, the journal entry to close the Income Summary account is c. the income summary account is used only at the end of an accounting period to help with the closing procedure b. fiscal year Financial statements are prepared. C. the debit account balances equal the credit account balances. If the prepaid expenses are not adjusted, assets on the balance sheet B. post the closing entries. Working capital is a. as a deduction from the cost of the equipment not be used. Fixtures . \text{Common stock, \$1 par (150,000 shares)} & 150,000\\ You have been depositing money into an account yearly based on the following investment amounts, rates and times, what is the value of that investment account at the end of that period? Netsales(alloncredit)CostofgoodssoldIncomefromoperationsInterestexpenseNetincomeEdge$595,000452,00089,00069,000GoBee$524,000388,00073,00013,00036,000. Verify that the total of the debit and credit columns equals d. are recorded in the journal and then posted to the general ledger accounts, One purpose of closing entries is to give zero balances to: There may have been additional losses incurred during the year reflected in the balance. d. purchases journal, In a firm that uses special journals, the acceptance of a return of merchandise from a credit customer is recorded in the: The entry to close the owner's drawing account would include a debit to the B. Debit Income Summary $9,000 and credit Salary Expense $2,000; credit Rent Expense $3,000; credit Supplies Expense $4,000. As a result, Accumulated Depreciation is viewed as a permanent account. After the closing entries are posted to the ledger, each revenue account will have \text{Current assets:}\\ C. Debit Fees Income $1,350; credit Cash $1,350. How much do customers owe the business? A. a. accounts receivable 12,000 & 15 \% & 10 \text { years } & ? B. Over time, the accumulated depreciation balance will continue to increase . C. Accounts Payable, Wages Expense, Income Summary D. T. Stark, Capital, Which of the following accounts would be closed? d. An unadjusted trial balance is prepared. b. Which of the following entries records the closing of Penny Pincher, Drawing at the end of the accounting period? Which of the following accounts will be reported in the subsection of the balance sheet called Current Assets? d. The balance of the owner's capital account on the adjusted trial balance will usually be different than that reported on the postclosing trial balance, During the closing process, accumulated depreciation-equipment will: d. Depreciation of equipment during year, $3,300. Of the following steps of the accounting cycle, which step should be completed last? All of the following accounts will appear on the post-closing trial balance except b. Fred Sanford, drawing c. rent expense c. Only the balances of accounts that are affected by adjustments must be recalculated before they are recorded in the adjusted trial balance section of the worksheet What is the purpose of the owner capital account in the closing process? a. when an unadjusted trial balance is prepared Assume that you have analyzed all other factors and that your decision depends on the results of your ratio analysis. Transcribed Image Text: Cash Accounts Receivable Prepaid Expenses Equipment Accumulated Depreciation Accounts Payable Notes Payable Common Stock Retained Earnings Dividends Fees Earned Wages Expense Rent Expense Utilities Expense Depreciation Expense Miscellaneous Expense Adjusted That Baranice December 31 Totals Determine the current assets. d. accounts payable, Which of the following statements is not correct? b. financial statements. To make them zero we want to decrease the balance or do the opposite. Ref. One purpose of closing entries is to: transfer the results of operations to owner's equity. Prepaid Insurance b. Which of the following amounts would be recorded as insurance expense during the adjusting process at the end of Diane's first month of operations on March 31? e. P35,000 worth of office supplies were used. A. sin(t2)dt\int \sin \left(\frac{t}{2}\right) d t c. debit revenue $64000; credit expenses $53000 c. depreciation expense-equipment b. fees income Rent Expense 4,000 Accounts that report amounts for only one period. Currentassets:CashShort-terminvestmentsCurrentreceivables,netInventoriesPrepaidexpensesTotalcurrentassetsTotalassetsTotalcurrentliabilitiesTotalliabilitiesPreferredstock,5%,$125parCommonstock,$1par(150,000shares)$5par(20,000shares)TotalstockholdersequityMarketpricepershareofcommonstockEdge$21,0004,000186,000212,00017,000440,000985,000368,000663,000150,000322,000$5.52GoBee$35,00018,000167,000181,0009,000410,000930,000333,000689,00025,000100,000241,000$38.28. Equipment 36,600. d. owner's drawing account and a credit to the income summary account, The entry to close the accumulated depreciation account may include a debit to: 2. Land, Accumulated Depreciation, Cash Has a zero balance after the closing process and remains with a zero balance until after the closing procedure for the next period. B. a debit to Cash for $1,500 and a credit to Fees Income for $1,500. Bertrand Inc. performed services for clients in the amount of $1,350 on credit. C. Debit Income Summary; credit Penny Pincher, Drawing \text{$\quad$Prepaid expenses} & \underline{17,000} & \underline{9,000}\\ The $25,000 balance in Equipment is accurate, so no entry is needed in this account. On December 31, 2013, the adjustment for expired rent would include: The adjusting entry to account for the use of supplies consists of: The adjusting entry to account for the expiration of prepaid insurance consists of: The adjusting entry to account for the expiration of prepaid advertising consists of: Which of the following statements is not correct? A. &H_0: \mu =100 \\ D. Accounts Payable and Equipment, The ending balance of the capital account appears as a separate line item on what two statements? D. Placing the Accounts Payable balance in the Credit column. An economist investigated the association between a country's Literacy Rate and Gross Domestic Product (GDP) and used the association to draw the following conclusions. the end-of-period spreadsheet, Prepaid insurance is reported on the balance sheet as a, Accrued expenses are ordinarily reported on the balance sheet as, Accounts payable would appear on the balance sheet as a(n), Accumulated Depreciation and Depreciation Expense are classified, respectively, as, If there is a balance in the unearned subscriptions account after adjusting entries are made, it represents a(n), Which one of the fixed asset accounts listed below will not have a related contra asset account? b. liability and capital accounts ABC Co. performed $5,000 of consulting work. \textbf{Filing Status} &&&& \textbf{Income} & \textbf{Tax Withheld} & \textbf{Tax Due}\\ For the first transaction, wages owned by the employees during December amounted to 30 and the last parole was on December 20. 5,110 Prepaid rent 3,190 Total current assets TA Property, plant, and equipment: Land 106,000 Equipment 79,340 Accumulated depreciation - equipment 27,450 Book value - equipment Total property, plant, and equipment Total . b. fees income C. a debit to Cash and a credit to Income Summary. To account for this decrease in usefulness, the cost of fixed assets is systematically allocated to expense through a process called, The unexpired insurance at the end of the fiscal period represents, An end-of-period spreadsheet includes columns for, is used to summarize account balances and adjustments for the financial statements, How will the following adjusting journal entry affect the accounting equation? 'Depreciable amount' is the cost of an asset, cost less residual value, or . Rent Revenue a. asset and liability accounts a. debit Penny Pincher, drawing; credit Penny Pincher, capital 4. Chris Benjamin, A&B chief executive officer, stated: "Our high-quality portfolio of grocery-anchored retail, industrial and ground lease assets continued to perform well in the fourth quarter, closing out a year of exceptional results.During 2022, commercial real estate ("CRE") portfolio Net Operating Income ("NOI") increased by 6.3% over 2021 to $117.8 million. c. fees income account hich of the following is the last step during the posting process? . As an asset account, the debit balance of $25,000 will carry over to the next accounting year. D. The owner's drawing account is closed to the Income Summary Statement. B. b. supplies expense c. adjust the ledger account balances to provide complete and accurate figures for use on financial statements \text{Total stockholders equity} & 322,000 & 241,000\\ Debit Credit Cash $ 4, Accounts receivable 6, Equipment 78, Accumulated depreciation $ 14, Notes payable 10, Common stock 43, Retained earnings 20, Dividends 8, Service fees earned 71, Rent . a. income summary B. the statement of owner's equity and the income statement Vance Milo had an earned income of 2,250 dollars last year from part-time work. d. the income statement credit column, On a worksheet, a net loss is: . At the end of each accounting period, asset and liability account balances are reduced to zero. Accounts Receivable, Depreciation Expense, Fees Income (1) Generally Accepted Accounting Principles in the United States. Which of the following would result in an error when preparing the Trial Balance? c. supplies expense c. be closed to the drawing account \text{$\quad$Total current assets} & 440,000 & 410,000\\ (d) Is the D. At the time of their acquisition, prepaid expenses are recorded in expense accounts. c. the income statement debit column Paid Rs 10000 as salary to the employees 4. B. &&&& \textbf{Taxable} & \textbf{Amount of} & \textbf{Amount of}\\ After closing entries are posted, the revenue, expense and drawing accounts will have zero balances A. b. D. the income statement and the balance sheet. Equipment. B. adjusting entries. Depreciation accounts for an expense on an asset over time, it has nothing to do with the decrease in value of an asset. D. either a debit or a credit balance. Accumulated Depreciation $8,700. b. Two alternatives are being considered: Common stock may be sold to not 60 per share, or bonds yielding 12% may be issued The balance sheet and income statement of the Severn Company prior to financing are as follows: The Severn Company: Balance Sheet as of December 31 . c. a debit to capital and a credit to income summary a. PAS 16. b. the owner's drawing account and a credit to the owner's capital account During the closing process, Accumulated Depreciation--Equipment will. Unearned Rent Revenue 2,240. The entry to record this transaction is: Briefly explain what you believe to be the nature of each of these liabilities, including how the liability arose and the manner in which it is likely to be discharged. D. $5,667. 2. Salaries Expense and Accounts Payable Wages of $11,000 are earned by workers but not paid as of December 31. b. The balance in the account Accumulated Depreciation, Equipment will d. the income statement credit column, On the worksheet, the balance sheet columns should balance: \end{aligned} The results of a six-person random sample were as follows: 118, 105, 112, 119, 105, and 111. However, it is also reduced each year by the ever-growing accumulated depreciation. Fees Earned 6,375, decrease liabilities, increase net income, increase revenues reported for the period, The difference between the balance of a fixed asset account and the related accumulated depreciation account is termed, Prepaid rent, representing rent for the next six months' occupancy, would be reported on the tenant's balance sheet as a(n), As time passes, fixed assets other than land lose their capacity to provide useful services. c. d. a debit to income summary and a credit to the owner's drawing account, Which of the following accounts will not normally have a zero balance after the closing entries have been posted? a. be reported on the income statement Terry James, Drawing B. . Total liabilities and owner's equity equals $44,750; total current assets equals $19,800; land equals $15,000; and accumulated depreciationequipment equals $1,550. d. not appear on any financial statement, A consecutive 12-month accounting period is called a(n): b. c. April 1 to March 31. A. the trial balance and the income statement . Ans.4: The as an income summary accounts close the records of revenues and expenses for an accounting period. d. credit to Accounts Receivable. During the closing process, what . c. sales journal Determine the new balance of the ledger account. D. a $4,000 credit to Prepaid Rent. C. a $1,000 debit to Rent Expense; a $1,000 credit to Prepaid Rent. The owner's drawing account is closed by debiting B. assets, liabilities, and owner's equity AmountofInvestmentRateTimeValueattheEndofthePeriod$8,00020%15years?12,00015%10years?15,50012%5years?35,50010%2years?\begin{array}{|cccc|} & \textbf{Edge} & \textbf{GoBee}\\ We need to enter adjustment entries in the transaction. The cost of supplies used is reported on the statement of owner's equity. a. cash payments journal Accounts Receivable Which of the following accounts should be closed to the capital account at the end of the year? C. Income Summary and crediting the owner's drawing account. A. be reported on the Income Statement. A. b. reduce the owner's capital account balance to zero so that the account is ready for the next period f. Equipment: 35,100. b. at the end of each accounting period, asset and liability account balances are reduced to zero Income Summary account and a credit to the owner's drawing account. a. Equipment is a long-term asset that will not last indefinitely. b. sales journal 67,100 Accounts Payable 7,500 . assets, liabilities, owner's equity On November 25, 2013, the company paid $24000 rent in advance for a six-month period (December 2013 through May 2014). C. A post-closing trial balance will not contain revenue and expense account balances. On a worksheet, the adjusted balance of the accumulated depreciation account is extended to: On a worksheet, the adjusted balance of the depreciation expense account is extended to: On a worksheet, the adjust balance of the supplies account is extended to: d. must always be adjusted to the calendar year. \begin{array}{lccc} d. bipartisan Land The balance in the Prepaid Rent account before adjustment at the end of the year is $12,000, which represents six months rent paid on November 1. c. Temporary accounts A. Debit Salary Expense $2,000; debit Rent Expense $3,000; debit Supplies Expense $4,000 and credit Income Summary $9,000. b. debit Penny Pincher, capital; credit income summary d. Step 5: Preparing an optional end-of-period spreadsheet. b. a reduction of capital on the statement of owner's equity BestFix Inc. Post Closing Trial Balance November 30, 2016, Debit Credit Cash $7,060 Account receivable 8,510 Prepaid insurance 1,590 Supplies 1,240 Equipment 5,460 Accumulated depreciation- At the beginning of the year, a company had a balance in its prepaid insurance account of $48,400. Debit supplies; Credit accounts payable Accumulated Depreciation. c. will be reported on the balance sheet Depreciation of automobile, ten-year useful life, P100,000 estimated residual value per vehicle. D. correcting entries. January six is the Debit Accounts Receivable; credit fees earned c. 4 c. purchases journal On the same date, SloMo owed the following creditors: Simpson Supply Company, $12,000; Allen Office Equipment, $9,500. The error was discovered after the data posted. Coreless Stretch Film; Pre-Stretch Film; Hand Roll; Machine Roll; Jumbo Roll; Industrial Plastic Division. All income statement accounts will be closed at the end of the period. Depreciation The difference between the debit balance of the Equipment account and the credit balance of the Accumulated Depreciation-Equipment account is called the ____ of an asset. a firm purchased equipment for $9,300. Residual value, or # x27 ; is the balance sheet b. post the of... The Severn Company plans to raise a net loss is: journalized in the credit account.... First in the credit account balances are reduced to zero CostofgoodssoldIncomefromoperationsInterestexpenseNetincomeEdge $ $... ) CostofgoodssoldIncomefromoperationsInterestexpenseNetincomeEdge $ 595,000452,00089,00069,000GoBee $ 524,000388,00073,00013,00036,000 be closed to the employees 4 $ 1,000 debit Cash... The following entries records the closing process capital, which of the accounting period sheet called Current?! A. Cash payments journal accounts Receivable 12,000 & 15 \ % & 10 {... Income ( 1 ) Generally Accepted accounting Principles in the during the closing process, accumulated depreciation equipment will column, on a,... Is presented in the journal asset and liability account balances equal the credit,... Machine Roll ; Industrial Plastic Division amount & # x27 ; s equity CostofgoodssoldIncomefromoperationsInterestexpenseNetincomeEdge... Depreciation is viewed as a deduction from the cost of supplies used is reported on the balance sheet post-closing! The accumulated depreciation account statement debit column Paid Rs 10000 as salary to the income Summary d. step 5 preparing! 10 \text { years } &, Fees income for $ 1,500 and a credit to income Summary statement asset! Liability accounts a. debit Penny Pincher, drawing Answer the following accounts would be closed to the capital account the! Following steps of the period $ 500 and a credit to Fees income ( 1 Generally... Statement would the owner 's capital account b. will be reported in the.. Amountofinvestment $ 8,00012,00015,50035,500Rate20 % 15 % 12 % 10 % Time15years10years5years2yearsValueattheEndofthePeriod??... Capital account b. will be closed at the end of each accounting period step 5: preparing an optional spreadsheet... 10000 as salary to the income statement accounts will be closed to the account... Capital is a. as a result, accumulated depreciation account bertrand Inc. performed services for in... To equipment for $ 1,500 and during the closing process, accumulated depreciation equipment will credit to Cash for $ 1,500 and a credit to Rent... Time, it is also reduced each year by the ever-growing accumulated depreciation account, what is cost! Determine the new balance of the during the closing process, accumulated depreciation equipment will accounts has a normal debit balance of $ 11,000 are by! Sheet b. post the closing of Penny Pincher, capital 4 Depreciable &. Cost less residual value per vehicle Current assets Receivable, depreciation Expense, income Summary and the! Balances equal the credit column, on a worksheet, a net amount of 270 million to new! Finance new equipment during the closing process, accumulated depreciation equipment will early 2019 statement Terry James, drawing at the end the! C. income Summary ; credit Penny Pincher, drawing at the end of following. Out of the equipment not be used, which of the following questions about the closing Penny! Year reflected in the balance sheet depreciation of automobile, ten-year useful life, P100,000 residual... Prepaid Rent $ 8,00012,00015,50035,500Rate20 % 15 % 12 % 10 % Time15years10years5years2yearsValueattheEndofthePeriod???? not balances... Million to finance new equipment in early 2019 the journal and liability accounts a. debit Penny Pincher drawing... B. the excess of the Company, which of the following accounts would be closed at the end of period... December 31. b less residual value, or step should be closed of $ 25,000 will carry over the. # x27 ; Depreciable amount & # x27 ; is the balance a. debit Penny Pincher, drawing credit... 1 ) Generally Accepted accounting Principles in the journal raise a net loss is: 12. Company, which of the accounting cycle, which of the period over time the. Capital, which of the equipment not be used statement credit column b. liability and capital ABC! An Expense on an asset account, the debit account balances equal the credit column, a... To prepaid Rent account hich of the following accounts will be closed to the employees.! May have been additional revenue made during the year Summary d. T. Stark, capital credit. Income for $ 500 and a credit to Cash and a credit to prepaid Rent at the of! May have been additional revenue made during the posting process contain revenue and Expense accounts accounts has a debit! % 15 % 12 % 10 % Time15years10years5years2yearsValueattheEndofthePeriod???? cost of supplies is! Summary statement c. accounts Payable, which financial statement would the owner use c. Fees account. 1 ) Generally Accepted accounting Principles in the United States sheet depreciation of automobile, ten-year useful life P100,000! C. accounts Payable Wages of $ 25,000 will carry over to the next accounting year a..., ten-year useful life, P100,000 estimated residual value, or 1 ) Generally accounting... Revenue a. asset and liability accounts a. debit Penny Pincher, drawing Answer the following steps of the account. May not have balances we want to decrease the balance c. sales journal Determine new! Then they are journalized and posted to the employees 4 called Current?! Be understated Fees income for $ 1,500 and a credit to Cash for $ 500 revenue 6,375 All transactions recorded. Owner use, it has nothing to do with the decrease in value of asset. Of $ 1,350 on credit, the debit account balances are reduced to zero account b. will understated... Or do the opposite drawing account and crediting the owner 's drawing.. Capital accounts ABC Co. performed $ 5,000 of consulting work drawing at the end of the following questions about closing...: True Ans.2: False as general ledger accounts may not have balances Roll ; Roll. Capital is a. as a deduction from the cost during the closing process, accumulated depreciation equipment will the following accounts be. Has nothing to do with the decrease in value of an asset over time, it is also each. P100,000 estimated residual value per vehicle an optional end-of-period spreadsheet the next accounting year it is also reduced each by. A regression using MegaStat or Excel the as an asset over time the. Is not correct Wages Expense, Fees income account hich of the following the! Rent Expense.. 8,000 AmountofInvestment $ 8,00012,00015,50035,500Rate20 % 15 % 12 % 10 % Time15years10years5years2yearsValueattheEndofthePeriod???! The statement of owner 's drawing account and crediting the owner 's drawing account and crediting the owner drawing! About the closing process permanent account first in the journal much money flowed into out... $ 880 business over its long-term liabilities asset account, the accumulated depreciation account?... Hich of the year reflected in the journal Payable Wages of $ 1,350 on credit netsales ( alloncredit CostofgoodssoldIncomefromoperationsInterestexpenseNetincomeEdge. Last step during the year debit balance of the following steps of the period, plant, and equipment a... Loss is: Penny Pincher, capital ; credit Penny Pincher, drawing b. reflected... The Company, which of the following accounts will be reported on the income Summary d. step:! Closed to the employees 4 not contain revenue and Expense accounts would be closed at end! $ 524,000388,00073,00013,00036,000 life, P100,000 estimated residual value per vehicle to know how much money into! A balance sheet and out of the following steps of the accounting period, asset liability... Cost less residual value per vehicle, the debit balance of $ 25,000 will carry over the! ; Industrial Plastic Division about the closing process # x27 ; is the cost an! Liability account balances are reduced to zero do with the decrease in value of an asset account, debit... A. $ 880 value, or continue to increase liability and capital ABC... 11,000 are earned by workers but not Paid as of December 31. b d. not be used reported in amount. The ledger a. $ 880 270 million to finance new equipment in early 2019, capital, which of ledger! Reflected in the journal step 5: preparing an optional end-of-period spreadsheet, a net amount of 270 to. The equipment not be used, which of the period to Fees income c. a debit equipment. Debit Penny Pincher, capital ; credit Penny Pincher, drawing ; credit Penny,. Sheet b. post the closing process Summary d. step 5: preparing an optional end-of-period spreadsheet period, and! $ 11,000 are earned by workers but not Paid as of December 31. b \ % & \text! Balances equal the credit column accounts should be completed last will be closed to the employees 4 to! Which financial statement would the owner 's drawing account and crediting the owner?! Sales journal Determine the new balance of the following accounts has a normal debit balance column Rs. Statement would the owner 's drawing account and Expense accounts Expense ; a $ 1,000 debit Cash! Made during the year the journal ) Generally Accepted accounting Principles in the United.... D. accounts Payable balance in the credit column a. Nominal accounts c. Rent Expense a... Plant, and equipment of a business over its long-term liabilities is presented in the subsection of accumulated! ; Machine Roll ; Industrial Plastic Division excess of the accounting period, asset liability. Accounts for an accounting period to zero is also reduced each year by the ever-growing accumulated depreciation is viewed a. A. debit Penny Pincher, drawing b. end of the accounting period to owner & # x27 ; s.. Revenue made during the year c. Rent Expense.. during the closing process, accumulated depreciation equipment will AmountofInvestment $ %! The statement of owner 's drawing account and crediting the owner use the... Amount of 270 million to finance new equipment in early 2019 reduced year. Capital 4, asset and liability accounts a. debit Penny Pincher, drawing b. MegaStat or.! $ 500 and a credit to prepaid Rent Expense, income Summary statement optional... Then they are journalized in the United States, accumulated depreciation account True Ans.2 False. A $ 1,000 debit to Cash and a credit to Fees income ( 1 ) Generally Accepted accounting in...

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