Question

BE 4-7 Using data in BE4-3,identity the accounts that would be included in a post closing trial bala

nts apped Depress and Accounts wrial balance colu coreciation Exper counts Payable. In ompleting the Accounting Cycle elecany: Accuenue, Supp balance sheet Cr., etc.) et Cr, etc.) to when shows BE4-3 The following selected accounts appear in the adjusted tria worksheet for Ashram Company: Accumulated Depreciation, Den Capital Owner's Drawings, Service Revenue, Supplies, and Acco financial statement column (income statement Dr., balance sheer balance should be extended. 12 52.100 ng balances: Owner's 000, Salaries and was ries at December 31 ent gentries from BE4-4 The ledger of Duston Company contains the following ba $30,000, Owner's Drawings $2,000, Service Revenue $50,000, Sal. $29,000, and Supplies Expense $7,000. Prepare the closing entries post the closing DO BE4.5 Using the data in BE4-4, enter the balances in T-accounts and underline and balance the accounts. he month ending 400. Maintena T-accounts Dom extend nd post closing the shore of account entries to close the e accounts, and en form of account. BE4-6 The income statement for Arbor Vitae Golf Club for them shows Service Revenue $16,400, Salaries and Wages Expense $8.400 Repairs Expense $2.500, and Net Income $5.700. Prepare the entries and expense accounts. Post the entries to the revenue and expense acco the closing process for these accounts using the three-column form of a Servic Notes Own included in a lasing trial ms. BE4-7 Using the data in BE4-3, identify the accounts that would be include closing trial balance. DO men Ow Ow Nc ng numbers 1-9 and steps in the le in sequence BE4-8 The steps in the accounting cycle are listed in random order below The in proper sequence, assuming no worksheet is prepared, by placing number 1 (b) blank spaces. Prepare a trial balance. Journalize the transactions. Journalize and post closing entries. Prepare financial statements. Journalize and post adjusting entries. o g Post to ledger accounts. UNDE Prepare a post-closing trial balance. Prepare an adjusted trial balance. Analyze business transactions. 3 g entries. BE4-9 At Raymond Company, the following errors were discovered after the tran had been journalized and posted. Prepare the correcting entries. 1. A collection on account from a customer for $870 was recorded as a debit and a credit to Service Revenue $870. 2. The purchase of store supplies on account for $1.510 was recorded as a plies $1,150 and a credit to Accounts Payable $1,150. a debit to Cash rded as a debito 1 assers e sheet. BE4-10 The balance sheet debit column of the worksheet for Mrotet the following accounts: Accounts Receivable $12,500, Prepaid Insuram 54.100, Supplies $5,200, and Debt Investments (short-term) $6,700. assets section of the balance sheet, listing the accounts in proper sequent olet Company inc urance $3,600 Prepare the cu

Answer 1

BE4-7

All of the given accounts are part of the trial balance but the closing entries are prepared only for the accounts from Income Statement like Revenues (sales revenue, service revenue etc.), Expenses (all operating expenses etc.) because these accounts' balances are not transferred to next period as each year, a fresh account is opened and each are closed at the end of the period. These accounts are closed to a temporary account called "Income Summary Account" and then its final balance (net income or loss) is transferred to Retained earnings.

Accounts from balance sheet like Assets (Cash, Inventory etc.), liabilities (accounts payable, notes payable etc.), their balances are transferred to next period and it continues but no closing entries are prepared.

Therefore, the following list of accounts only, the closing entries are prepared and reported in the closing trial balance.

Account Name	Supporting explanation
Accumulated Depreciation	Each depreciation expense is accumulated into a separate account called Accumulated Depreciation account and its balance is carried forwarded in future years, hence, it is included in the post closing trial balance.
Owner's Capital	Capital issued from the beginning of the business is accumulated into a separate account called owner's capital along with any increase or decrease like issue of shares or resale of shares etc., hence, its balance is carried forwarded to future years, thus, it is included in the post closing trial balance.
Supplies	Supplies is an asset and its balance carried forwarded to future years by adding each year's purchases and usages, hence, its balance is carried forwarded to future years, thus, it is included in the post closing trial balance.
Accounts Payable	Accounts payable is a liability and its balance is carried forwarded to future years due to purchases on account or payments due, hence, it is included in the post closing trial balance.