Homework Answers
Q3. Option(A) is the correct answer.
- *The normal balance for Income Summary will be credit when there is a net income, debit when there is a net loss. *The Income Summary account does not appear on any financial statement.
- *The Company uses the Income Summary account only in closing.
- *Before it is closed to retained earnings, the income summary account balance is equal to net income.
- *It because of revenues and expenses are closed into income summary.
- *It does not journalize and post entries to this account during the year.
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Q4. Option(A) is the correct answer.
- *It stats from the journalized and posted all closing entries, it prepares another trial balance, called a post-closing trial balance, from the ledger.
- *The post-closing trial balance lists permanent accounts and their balances after the journalizing and posting of closing entries.
- *The purpose of the post-closing trial balance is to prove the equality of the permanent account balances carried forward into the next accounting period.
- *Since all temporary accounts will have zero balances, the post-closing trial balance will contain only
- permanent balance sheet accounts.
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Q5. Option(D) is the correct answer.
- *Current assets are assets that a company expects to convert to cash or use up within one year or its operating cycle, whichever is longer.
- *Example- Supplies is a current asset because the company expects to use them up in operations within one year.
- *Companies report inventory as a current asset on the balance sheet.
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3. The balance in the income summary account before it is closed will be equal to...
Question 8 15 pts Match each definition with the appropriate term. An account that is paired...
Question 8 15 pts Match each definition with the appropriate term. An account that is paired with another account and acts to reduce.its book value. Choose) [Choose1 The amount at which an asset or liability is reported in the financial statements. Converts some of an asset's or a liability's book value into an expense or a revenue A journal entry that transfers net income or loss to the Retained Earnings account [ Choose ] Deferral adjustment Income before income taxes...
4) After preparing and posting the closing entries for revenues and expenses, the income summary account has a d...
4) After preparing and posting the closing entries for revenues and expenses, the income summary account has a debit balance of $33,000. The entry to close the income summary account will be: A) Debit Owner Capital $33,000; credit Income Summary $33,000. B) Debit Owner Withdrawals $33,000; credit Income Summary $33,000. C) Debit Income Summary $33,000; credit Owner Withdrawals $33,000. D) Credit Owner Capital $33,000; debit Owner Withdrawals $33,000. E) Debit Income Summary $33,000; credit Owner Capital $33,000 5) Which of...
Multiple Choice Questions: 1. Some of what we've learned about Income Summary account is: A) If...
Multiple Choice Questions: 1. Some of what we've learned about Income Summary account is: A) If we had a Net Loss, we will close Income Summary by debiting Income Summary and crediting Retained Earnings B) The income summary account is a temporary account that we create to close revenue, expenses, and dividends with it C) After closing revenue and expenses, the income summary account (before we close it) will have an ending balance that matches exactly the net income (or...
accounting questions! QUESTION 1 In a merchandising business, the income summary balance is transferred to the:...
accounting questions!
QUESTION 1 In a merchandising business, the income summary balance is transferred to the: retained earnings. income summary. capital trial balance. QUESTION 2 To close the income summary to the retained earnings and transfer the net profit, which account should be credited? Income Summary Retained Earnings Withdrawals Owner's Capital QUESTION 3 The first step in the accounting cycle is: preparing a post-closing trial balance. collecting and verifying source documents analyzing each business transaction. O preparing a trial balance....
a b. C d. Expenses paid in cash before they are used or consumed. The difference...
a b. C d. Expenses paid in cash before they are used or consumed. The difference between the cost of a depreciable asset and its related accumulated depreciation. A list of accounts and their balances after all adjustments have been made. Entries made at the end of an accounting period to ensure that the revenue recognition and expense recognition principles are followed. Entries at the end of an accounting period to transfer the balances of temporary accounts to a permanent...
71) When the Withdrawals account is closed, A) Owner's Capital will be debited. B) Income Summary...
71) When the Withdrawals account is closed, A) Owner's Capital will be debited. B) Income Summary will be debited. C) Income Summary will be credited Dj None of these are correct. 72) The Income Summary account debited and the expense accounts credited would be the result of Al closing the income Summary account--there is a net income. B) closing the revenue accounts c) closing the income Summary accounts - there is a net loss. D) closing the expense accounts 73)...
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...
Prepare Closing Entries Using the income Summary Account The Century Company's adjusted trial balance contains the...
Prepare Closing Entries Using the income Summary Account The Century Company's adjusted trial balance contains the following balances as of December 31: Retained Earnings $25.500; Dividends $6,000; Sales $60,000, Cost of Goods Sold $24,000; Selling and Administrative Expenses $9,000; Interest Expense 54,500. Prepare the closing entries for The Century Company. Close the temporary accounts to income summary. General Journal Debit Credit + . To close the revenue account Cost of goods sold Selling and administrative expense To close the expense...
The income summary account is a temporary account. appears on the balance sheet. is a permanent...
The income summary account is a temporary account. appears on the balance sheet. is a permanent account. appears on the income statement.
match the lettered definition with the vocab word a. Expenses paid in cash before they are...
match the lettered definition with the vocab word
a. Expenses paid in cash before they are used or consumed.
choose the accounting concept
b. The difference between the cost of a depreciable asset and
its related accumulated depreciation.
choose the accounting concept
c. A list of accounts and their balances after all adjustments
have been made.
choose the accounting concept
d. Entries made at the end of an accounting period to ensure
that the revenue
recognition and expense recognition principles...
Question 8 15 pts Match each definition with the appropriate term. An account that is paired with another account and acts to reduce.its book value. Choose) [Choose1 The amount at which an asset or liability is reported in the financial statements. Converts some of an asset's or a liability's book value into an expense or a revenue A journal entry that transfers net income or loss to the Retained Earnings account [ Choose ] Deferral adjustment Income before income taxes...
4) After preparing and posting the closing entries for revenues and expenses, the income summary account has a debit balance of $33,000. The entry to close the income summary account will be: A) Debit Owner Capital $33,000; credit Income Summary $33,000. B) Debit Owner Withdrawals $33,000; credit Income Summary $33,000. C) Debit Income Summary $33,000; credit Owner Withdrawals $33,000. D) Credit Owner Capital $33,000; debit Owner Withdrawals $33,000. E) Debit Income Summary $33,000; credit Owner Capital $33,000 5) Which of...
accounting questions!
QUESTION 1 In a merchandising business, the income summary balance is transferred to the: retained earnings. income summary. capital trial balance. QUESTION 2 To close the income summary to the retained earnings and transfer the net profit, which account should be credited? Income Summary Retained Earnings Withdrawals Owner's Capital QUESTION 3 The first step in the accounting cycle is: preparing a post-closing trial balance. collecting and verifying source documents analyzing each business transaction. O preparing a trial balance....
a b. C d. Expenses paid in cash before they are used or consumed. The difference between the cost of a depreciable asset and its related accumulated depreciation. A list of accounts and their balances after all adjustments have been made. Entries made at the end of an accounting period to ensure that the revenue recognition and expense recognition principles are followed. Entries at the end of an accounting period to transfer the balances of temporary accounts to a permanent...
71) When the Withdrawals account is closed, A) Owner's Capital will be debited. B) Income Summary will be debited. C) Income Summary will be credited Dj None of these are correct. 72) The Income Summary account debited and the expense accounts credited would be the result of Al closing the income Summary account--there is a net income. B) closing the revenue accounts c) closing the income Summary accounts - there is a net loss. D) closing the expense accounts 73)...
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...
Prepare Closing Entries Using the income Summary Account The Century Company's adjusted trial balance contains the following balances as of December 31: Retained Earnings $25.500; Dividends $6,000; Sales $60,000, Cost of Goods Sold $24,000; Selling and Administrative Expenses $9,000; Interest Expense 54,500. Prepare the closing entries for The Century Company. Close the temporary accounts to income summary. General Journal Debit Credit + . To close the revenue account Cost of goods sold Selling and administrative expense To close the expense...
The income summary account is a temporary account. appears on the balance sheet. is a permanent account. appears on the income statement.
match the lettered definition with the vocab word
a. Expenses paid in cash before they are used or consumed.
choose the accounting concept
b. The difference between the cost of a depreciable asset and
its related accumulated depreciation.
choose the accounting concept
c. A list of accounts and their balances after all adjustments
have been made.
choose the accounting concept
d. Entries made at the end of an accounting period to ensure
that the revenue
recognition and expense recognition principles...
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