Explain the process of closing the books. What are permanent accounts and are they closed in...
Explain the process of closing the books. What are permanent accounts and are they closed in the closing process? Why or why not?
Homework Answers
Permanent accounts are accounts that are not closed at the end of the accounting period, hence are measured cumulatively. Permanent accounts refer to asset, liability, and capital accounts -- those that are reported in the balance sheet. Also known as: Real accounts, Balance sheet accounts.
These accounts are closed at the time of settlement or disposal etc.
• Process of closing books of accounts.
1) journal entries
2) posting journal to ledgers
3) prepare trial balance
4) adjustment closing entries
5) adjusted trial balance
6) closing entries
7) prepare profit and loss account
8) prepare balance sheet
All nominal accounts like expenses, incomes, are to be closed at the year end. Balance in personal and real accounts to be c/f to next year
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Explain the process of closing the books. What are permanent
accounts and are they closed in...
Which types of accounts will appear in the post-closing trial balance? Permanent accounts. O Temporary accounts....
Which types of accounts will appear in the post-closing trial balance? Permanent accounts. O Temporary accounts. O Accounts shown in the income statement columns of a work sheet. O None of these.
Closing Process Selected adjusted balances of the Rose Corporation, prepared as of December 31, are as...
Closing Process Selected adjusted balances of the Rose Corporation, prepared as of December 31, are as follows: Account Balance Account type Service fees earned 592,500 Temporary Interest income 2,200 Temporary Salaries expense 41,800 Temporary Advertising expense 4300 Temporary Depreciation expense 8,700 Temporary Income tax expense 9.900 Temporary Common stock 7,500 Permanent Retained earnings, beg, balance 57,700 Permanent Cash dividends 15,000 Temporary Identify the temporary accounts that will be closed to retained Earnings. Once the closing process is completed, what is...
Identifying Permanent Accounts Which of the following accounts will usually appear in the post-closing trial balance?
Identifying Permanent Accounts Which of the following accounts will usually appear in the post-closing trial balance? a. Accounts Receivable b. Cash c. Depreciation Expense d. Fees Earned e. Doug Woods, Capital f. Doug Woods, Drawing g. Equipment h. Land i. Salaries Payable j. Unearned Rent k. Wages Expense
DB 3- What types of accounts are closed at the end of the accounting year? What...
DB 3- What types of accounts are closed at the end of the accounting year? What are the three major steps in the closing process?
5. Closing journal entries: a. Are prepared to bring permanent accounts to zero at year-end. b....
5. Closing journal entries: a. Are prepared to bring permanent accounts to zero at year-end. b. Are prepared to bring temporary accounts to zero at year-end. C. Are prepared for balance sheet accounts. d. None of the above.
25 What type of accounts are closed each month? real accounts temporary accounts 105 25 Which of the following acco...
25 What type of accounts are closed each month? real accounts temporary accounts 105 25 Which of the following accounts is not part of the closing process drawing capital accounts payable D26 29 Which of the following accounts is closed to retained earnings dividend drawing
Closing Entries with Net Income After all revenue and expense accounts have been closed at the...
Closing Entries with Net Income After all revenue and expense accounts have been closed at the end of the fiscal year, Income Summary has a debit of $2,450,000 and a credit of $3,000,000. At the same date, Retained Earnings has a credit balance of $8,222,600, and Dividends has a balance of $125,000. a. Journalize the entries required to (1) close net income or net loss and (2) close the Dividends account. 1 2 b. Determine the amount of Retained Earnings...
Closing accounts and the accounting cycle Required a. Identify which of the following accounts are temporary...
Closing accounts and the accounting cycle Required a. Identify which of the following accounts are temporary will be closed to Retained Earnings at the end of the year) and which are permanent: (1) Other Operating Expenses (2) Utilities Expense (3) Retained Earnings (4) Salaries Expense (5) Land (6) Dividends (7) Service Revenue (8) Cash (9) Salaries Payable (10) Common Stock
True or False: During the closing process, retained earnings is closed to the dividends account.
True or False: During the closing process, retained earnings is closed to the dividends account.
during the closing process retained earnings is closed to the dividends account true or false
during the closing process retained earnings is closed to the dividends account true or false
Which types of accounts will appear in the post-closing trial balance? Permanent accounts. O Temporary accounts. O Accounts shown in the income statement columns of a work sheet. O None of these.
Closing Process Selected adjusted balances of the Rose Corporation, prepared as of December 31, are as follows: Account Balance Account type Service fees earned 592,500 Temporary Interest income 2,200 Temporary Salaries expense 41,800 Temporary Advertising expense 4300 Temporary Depreciation expense 8,700 Temporary Income tax expense 9.900 Temporary Common stock 7,500 Permanent Retained earnings, beg, balance 57,700 Permanent Cash dividends 15,000 Temporary Identify the temporary accounts that will be closed to retained Earnings. Once the closing process is completed, what is...
Identifying Permanent Accounts Which of the following accounts will usually appear in the post-closing trial balance? a. Accounts Receivable b. Cash c. Depreciation Expense d. Fees Earned e. Doug Woods, Capital f. Doug Woods, Drawing g. Equipment h. Land i. Salaries Payable j. Unearned Rent k. Wages Expense
DB 3- What types of accounts are closed at the end of the accounting year? What are the three major steps in the closing process?
5. Closing journal entries: a. Are prepared to bring permanent accounts to zero at year-end. b. Are prepared to bring temporary accounts to zero at year-end. C. Are prepared for balance sheet accounts. d. None of the above.
25 What type of accounts are closed each month? real accounts temporary accounts 105 25 Which of the following accounts is not part of the closing process drawing capital accounts payable D26 29 Which of the following accounts is closed to retained earnings dividend drawing
Closing Entries with Net Income After all revenue and expense accounts have been closed at the end of the fiscal year, Income Summary has a debit of $2,450,000 and a credit of $3,000,000. At the same date, Retained Earnings has a credit balance of $8,222,600, and Dividends has a balance of $125,000. a. Journalize the entries required to (1) close net income or net loss and (2) close the Dividends account. 1 2 b. Determine the amount of Retained Earnings...
Closing accounts and the accounting cycle Required a. Identify which of the following accounts are temporary will be closed to Retained Earnings at the end of the year) and which are permanent: (1) Other Operating Expenses (2) Utilities Expense (3) Retained Earnings (4) Salaries Expense (5) Land (6) Dividends (7) Service Revenue (8) Cash (9) Salaries Payable (10) Common Stock
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