FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 6: Closing Entries and Teh Postclosing Trial Balance

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

Multiple Choice

Review LaterAdd Note

Review Later

Which of the following accounts has a normal credit balance?

A) T) Stark, Drawing
B) Accounts Payable
C) Supplies Expense
D) Accounts Receivable

E) B) and C)
F) All of the above

Correct Answer

verified

Show Answer

Question 22

Multiple Choice

Review LaterAdd Note

Review Later

Which of the following accounts has a normal debit balance?

A) T) Stark, Capital
B) Accounts Payable
C) Fees Income
D) Accounts Receivable

E) A) and C)
F) A) and B)

Correct Answer

verified

Show Answer

Question 23

Multiple Choice

Review LaterAdd Note

The entry to close the owner's drawing account would include a debit to the:

The asset, liability, and owner's capital accounts appear on all of the following except the:

Withdrawals by the owner for personal use do not affect net income or net loss of the business.

The postclosing trial balance contains balance sheet accounts only.

If the Income Summary account has a debit balance before it is closed, the firm experienced a net________ from operations.

Match the accounting terms with the description by entering the proper letter in the space provided. A. Closing entries B. Income Summary account C. Interpret D. Post-closing trial balance ________ 1. To understand and explain the meaning and importance of something (such as financial statements) ________ 2. Journal entries that transfer the results of operations (net income or net loss)to owner's equity and reduce the revenue, expense, and drawing account balances to zero 3. A statement that is prepared to prove the equality of total debits and credits after the closing process is completed ________ 4. A special owner's equity account that is used only in the closing process to summarize the results of operations

The final closing entry transfers the balance of the ________ account to the owner's capital account.

The ________ entries transfer the results of operations to owner's equity.

Information in the financial statements provides answers to many questions, including:

The entry to close the revenue account, Fees Income, requires a debit to that account.

When done properly, how many journal entries are involved in the closing process?

After all the closing entries are posted to the ledger, the Income Summary account will have a________ balance.

Use the following account balances from the adjusted trial balance of Gees Catering: Select the correct closing entry that Gees Catering would make to close the owner's withdrawal account at the end of the accounting period.

The partial worksheet for the Jamison Company showed the following data on October 31, 2019. Record the closing entries on page 6 of a general journal.

Managers often consult financial statements for specific types of information. Indicate whether each of the following items would appear on the income statement, statement of owner's equity, or the balance sheet. Note that an item may appear on more than one statement. The first item is completed as an example. $\begin{array} { | l | l | l | l | } \hline & \begin{array} { c } \text { Income } \\\text { Statement }\end{array} & \begin{array} { l } \text { Statement of } \\\text { Owner's } \\\text { Equity }\end{array} & \text { Balance Sheet } \\\hline \text { Accounts Payable } & & & \mathrm { X } \\\hline \text { Accounts Receivable } & & & \\\hline \text { Accumulated Depreciation - Equipment } & & & \\\hline \text { Cash } & & & \\\hline \text { Depreciation Expense - Equipment } & & & \\\hline\end{array}$ $\begin{array} { | l | l | l | l | } \hline \text { Equipment } &\quad\quad &\quad\quad &\quad\quad \\\hline \text { Fees Income } & & & \\\hline \text { N. Dalton, Capital, beginning of period } & & & \\\hline \text { N. Dalton, Capital, end of period } & & & \\\hline \text { N. Dalton, Drawing } & & & \\\hline \text { Rent Expense } & & & \\\hline \text { Salaries Expense } & & & \\\hline \text { Supplies } & & & \\\hline \text { Supplies Expense } & & & \\\hline \text { Total assets of the business } & & & \\\hline \text { Total expenses for the period } & & & \\\hline \text { Total liabilities of the business } & & & \\\hline \text { Total revenues for the period } & & & \\\hline\end{array}$

All of the following accounts will appear on the post-closing trial balance except:

The adjusted ledger accounts of RD Consulting on December 31, 2019, appear as follows. All accounts have normal balances and adjusting entries have been made. Extend the balances to the Balance Sheet and Income Statement columns of the worksheet. Then, journalize the closing entries on page 4 of a general journal.

The first two closing entries to the Income Summary account indicate a debit of $47,000 and a credit of $41,000. The third closing entry would be: