Discuss why closing entries are prepared at the end of the accounting period. How are the...
Discuss why closing entries are prepared at the end of the accounting period. How are the accounts affected?
Homework Answers
Closing entry is a journal entry made at the end of accounting periods, which transfers the balances from the temporary accounts on income statement to a permanent or real account on balance sheet.
In effect, temporary accounts will again begin the following accounting period with zero balances.
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Discuss why closing entries are prepared at the end of the
accounting period. How are the...
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.
Before closing entries were recorded at the end of the accounting period (December 31, 2015), the...
Before closing entries were recorded at the end of the accounting period (December 31, 2015), the following data were taken from the accounts of Buynow Corporation: Capital Stock, par $10 (20,000 shares issued) Contributed capital in excess of par Retained earnings, balance December 31, 2014 Revenues earned during 2015 Expenses incurred during 2015 Cash dividends declared and paid (during 2015) Treasury stock (1,000 shares at cost) $200.000 15,000 80,000 400.000 344.000 30,000 17,000 The total amount of owners' equity that...
The End of the Accounting Cycle – the closing process: The accounts and balances from the...
The End of the Accounting Cycle – the closing process: The accounts and balances from the adjusted trial balance for Sparrow and Nightingale, Inc. as of April 30, 2019 is given below. Assume all accounts have their normal debit or credit balance. Sparrow and Nightingale, Inc. use a monthly accounting period and all closing entries are made only at the end of each monthly accounting period. No closing entries have been made yet for April. Account: Amount: Account: Amount: Cash...
PR 4-3A T accounts, adjusting entries, financial statements, and OBJ. 2,3 closing entries; optional end-of-period spreadsheet...
PR 4-3A T accounts, adjusting entries, financial statements, and OBJ. 2,3 closing entries; optional end-of-period spreadsheet The unadjusted trial balance of Epicenter Laundry at June 30, 2019, the end of the fiscal year, follows: Epicenter Laundry Unadjusted Trial Balance June 30, 2019 Debit Credit Balances Balances Cash.......... 11,000 Laundry Supplies ............ 21,500 Prepaid Insurance............ 9,600 Laundry Equipment............ 232,600 125,400 Accumulated Depreciation ....... 11,800 Accounts Payable.......... 105,600 Sophie Perez, Capital. 10,000 Sophie Perez, Drawing ........ 232,200 Laundry Revenue ............. 125,200 Wages...
Adjusting entries are used to update accounts at the end of an accounting period. O O...
Adjusting entries are used to update accounts at the end of an accounting period. O O True False
4. The End of the Accounting Cycle – the closing process (5pts): The accounts and balances...
4. The End of the Accounting Cycle – the closing process (5pts): The accounts and balances from the adjusted trial balance for Sparrow and Nightingale, Inc. as of April 30, 2019 is given below. Assume all accounts have their normal debit or credit balance. Sparrow and Nightingale, Inc. use a monthly accounting period and all closing entries are made only at the end of each monthly accounting period. No closing entries have been made yet for April. Account: Amount: Account:...
Closing entries take place at the end of an accounting cycle. It is a vital part...
Closing entries take place at the end of an accounting cycle. It is a vital part of the accounting cycle to prepare to the company's annual financial statements as well as for the new fiscal year. -As a manager, what would be your procedure in setting up the closing process? What kind of policies would you put in place to avoid making mistake?
Credit PR 4-3A T accounts, adjusting entries, financial statements, and closing entries; optional end-of-period spreadsheet OBJ....
Credit PR 4-3A T accounts, adjusting entries, financial statements, and closing entries; optional end-of-period spreadsheet OBJ. 2,3 The unadjusted trial balance of Epicenter Laundry at June 30, 2019, the end of the fiscal year, follows: Epicenter Laundry Unadjusted Trial Balance June 30, 2019 Debit Balances Balances Cash....... 11,000 Laundry Supplies ............. 21,500 Prepaid Insurance............. 9,600 Laundry Equipment........... 232,600 125,400 Accumulated Depreciation ....... 11,800 Accounts Payable.......... 105,600 Sophie Perez, Capital.... 10,000 Sophie Perez, Drawing.. 232,200 Laundry Revenue .......... 125,200 Wages Expense...............
A company's ledger accounts and their end-of-period balances before closing entries are posted are shown below....
A company's ledger accounts and their end-of-period balances before closing entries are posted are shown below. What amount will be posted to Retained earnings in the process of closing the Income Summary account? (Assume all accounts have normal balances.) Retained earnings $ 5,250 Dividends 7,350 Revenue 21,000 Rent expense 2,100 Salaries expense 5,000 Insurance expense 235 Depr. Expense-equipment 320 Accum depr.-equipment 960
Module II: Chapter 4: Review Questions Assignment 1. What are the steps in recording closing entries?...
Module II: Chapter 4: Review Questions Assignment 1. What are the steps in recording closing entries? What are the steps in the accounting cycle? 2. What accounts are affected by closing entries? What accounts are not affected? 3. What two purposes are accomplished by recording closing entries? 4. What is the purpose of the Income Summary account? 5. Explain whether an error has occurred if a post-closing trial balance includes a Depreciation Expense account. 6. What tasks are aided by...
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.
Before closing entries were recorded at the end of the accounting period (December 31, 2015), the following data were taken from the accounts of Buynow Corporation: Capital Stock, par $10 (20,000 shares issued) Contributed capital in excess of par Retained earnings, balance December 31, 2014 Revenues earned during 2015 Expenses incurred during 2015 Cash dividends declared and paid (during 2015) Treasury stock (1,000 shares at cost) $200.000 15,000 80,000 400.000 344.000 30,000 17,000 The total amount of owners' equity that...
PR 4-3A T accounts, adjusting entries, financial statements, and OBJ. 2,3 closing entries; optional end-of-period spreadsheet The unadjusted trial balance of Epicenter Laundry at June 30, 2019, the end of the fiscal year, follows: Epicenter Laundry Unadjusted Trial Balance June 30, 2019 Debit Credit Balances Balances Cash.......... 11,000 Laundry Supplies ............ 21,500 Prepaid Insurance............ 9,600 Laundry Equipment............ 232,600 125,400 Accumulated Depreciation ....... 11,800 Accounts Payable.......... 105,600 Sophie Perez, Capital. 10,000 Sophie Perez, Drawing ........ 232,200 Laundry Revenue ............. 125,200 Wages...
Adjusting entries are used to update accounts at the end of an accounting period. O O True False
Credit PR 4-3A T accounts, adjusting entries, financial statements, and closing entries; optional end-of-period spreadsheet OBJ. 2,3 The unadjusted trial balance of Epicenter Laundry at June 30, 2019, the end of the fiscal year, follows: Epicenter Laundry Unadjusted Trial Balance June 30, 2019 Debit Balances Balances Cash....... 11,000 Laundry Supplies ............. 21,500 Prepaid Insurance............. 9,600 Laundry Equipment........... 232,600 125,400 Accumulated Depreciation ....... 11,800 Accounts Payable.......... 105,600 Sophie Perez, Capital.... 10,000 Sophie Perez, Drawing.. 232,200 Laundry Revenue .......... 125,200 Wages Expense...............
Module II: Chapter 4: Review Questions Assignment 1. What are the steps in recording closing entries? What are the steps in the accounting cycle? 2. What accounts are affected by closing entries? What accounts are not affected? 3. What two purposes are accomplished by recording closing entries? 4. What is the purpose of the Income Summary account? 5. Explain whether an error has occurred if a post-closing trial balance includes a Depreciation Expense account. 6. What tasks are aided by...
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