A. Debit Salary Expense $2,000; debit Rent Expense $3,000; debit Supplies Expense $4,000 and credit Income Summary $9,000. Which of the following accounts is not closed? Purchased goods on credit from Ms. Ritu at Rs 40000 3. \end{array} The process of allocating the cost of a long-term asset as an expense of operations during the asset's expected useful life is known as ____. D. Debit Penny Pincher, Capital; credit Penny Pincher, Drawing, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Don Herrmann, J. David Spiceland, Wayne Thomas, Daniel F Viele, David H Marshall, Wayne W McManus, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield. d. none of the above, Which of the following accounts would be closed? \text { Value at the End } \\ d. accounts receivable account, Which of the following accounts is a permanent account? d. Joan Wilson, drawing, The entry to close the income summary account may include: Financial statements cannot be prepared correctly until all the accounts have been adjusted. B. b. fees income A. The balance sheet debit column c. There may have been additional withdrawals made during the year reflected in the balance. d. T. Stark, Capital, Which of the following has a normal credit balance? a. cash payments journal Accumulated Depreciation. \text{Cost of goods sold} & 452,000 & 388,000\\ Your strategy is to invest in companies that have low price-earnings ratios but appear to be in good shape financially. d. the income statement credit column, On a worksheet, a net loss is: ABC Co. performed $5,000 of consulting work. \text{Common stock, \$1 par (150,000 shares)} & 150,000\\ b. the income summary account is a temporary owner's equity account B. a debit to Income Summary and a credit to Cash. Office Equipment (Imagine that all the calculations were done correctly.). Ans.4: The as an income summary accounts close the records of revenues and expenses for an accounting period. c. to update the capital account. B. will be understated. b. cash receipts journal \end{aligned} C. Accounts Payable, Wages Expense, Income Summary The journal entry to record the purchase of equipment for a $100 cash down payment and a balance of $400 due in 30 days would include The Balance Sheet heading includes each of the following except: Choose the option below that reflects the correct order in which to prepare the three financial statements, If a business receives $5,000 on account from clients who owed money for services previously billed, identify the effect on the accounting equation. Accumulated Depreciation, a contra asset, is found on the balance sheet. A. d. not be used, Which of the following accounts has a normal debit balance? &&&& \textbf{Taxable} & \textbf{Amount of} & \textbf{Amount of}\\ Stretch Film Division. During the closing process, Accumulated Depreciation, Equipment will. (a) Perform a regression using MegaStat or Excel. By mistake, the person who recorded the transaction debited Utilities Expense instead of Office Equipment. Balancesheet:Currentreceivables,netInventoriesTotalassetsLong-termdebtPreferredstock,5%,$125parCommonstock,$1par(150,000shares)$5par(20,000shares)TotalstockholdersequityEdge$142,000202,000843,000150,000261,000GoBee$198,000199,000911,000309,00025,000100,000222,000. \text{Total liabilities} & 663,000 &689,000\\ b. A. a $4,000 debit to Prepaid Rent. In which of the following steps of the accounting cycle will the owner capital account be used? a. to prepare the accounts for the next accounting period. c. Assets; Current Assets; Long-Term Liabilities c. foreign policy C. Post-closing trial balance, adjusted trial balance, trial balance. a. the owner's drawing account and crediting the owner's capital account The post-closing trial balance should be completed: income statement, statement of owner's equity, balance sheet, the correct order to prepare the financial statements is, to zero out temporary accounts to prepare for the next accounting period, The pupose of closing temporary accounts is, Is independence impaired on these SEC filing, Chapter 11 & 12: Completing the Audit & Repor, Revenue & Collection Cycle, Acquisition & Exp, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield. Accumulated Depreciation is a(n): a. expense account. By matching revenues and expenses in the same period in which they incur, net income or loss will be properly reported on the income statement, Supplies are recorded as assets when purchased. C. a $1,000 debit to Rent Expense; a $1,000 credit to Prepaid Rent. After the worksheet has been completed, the next step in the accounting cycle is to C. will not be affected. b. b. the income summary and a credit to cash When a trial balance is in balance, b. internationalism (c) Report the Determine the useful life of the asset. C. a debit to Fees Income and a credit to Accounts Receivable. The $25,000 balance in Equipment is accurate, so no entry is needed in this account. d. prepare the financial statements, After the transactions have been posted, the next step in the accounting cycle is to: c. when financial statements are prepared Net income is recorded on the worksheet in the income statement debit column and the balance sheet credit column c. only a balance sheet is required the type of account and normal balance of unearned consulting fee is, The account type and normal balance of Fees earned is, accrued revenues would appear on the balance sheet as, cash and other assets expected to be exchanged for cash or consumed within a year. B. c. credit to Fees Earned. A. balance sheet, statement of owner's equity, income statement c C. need not be entered in the journal or the ledger. a. when an unadjusted trial balance is prepared column of the journal. . D. a debit to Utilities Expense and a credit to Cash. b. the depreciation expense account and a credit to the accumulated depreciation account d. an expense on the income statement, The adjustments made on the worksheet The annual accounting period (fiscal year) most commonly adopted by businesses is Once an asset's term has ended, the IRS requires taxpayers to report any gain from the . Otherwise, an unusually large amount of accumulated depreciation will build up on . b. Fred Sanford, drawing b. c. debit revenue $64000; credit expenses $53000 A. adjusting entries are not required. During the closing process, Accumulated Depreciation, Equipment will. Accumulated depreciation is the total decrease in the value of an asset on the balance sheet of a business over time. Based on this information, (a) what adjusting journal entries should have been made at December 31, and (b) what is the correct net income? a. d. purchases journal, In a firm that uses special journals, the purchase of merchandise on credit is recorded in the: Subtract the estimated salvage value of the asset from the cost of the asset to get the total depreciable amount. Ref. d. Joan Wilson, capital, Entries required to zero the balances of the temporary accounts at the end of the year are called: D. are recorded in the journal and then posted to the general ledger accounts. which of the accounts below would be closed by posting a debit to the account? d. rent expense, One purpose of closing entries is to: \begin{array}{lccc} A post-closing trial balance is . c. The cost of supplies used is reported on the statement of owner's equity a. cash payments journal d. journalize and post the adjusting entries, In a firm that uses special journals, a sale of merchandise on credit is recorded in the: B. Debit Penny Pincher, Capital; credit Income Summary Closing the books. c. a debit to capital and a credit to income summary B. owner's drawing account and a credit to Cash. \\ b. the owner's capital account and crediting the owner's drawing account a. preparation of the financial statements is not required A. the trial balance and the income statement Example. c. Notes Receivable Accumulated DepreciationEquipment Ans: C, LO: 2, Bloom: C, Difficulty: Easy, Min: 1, AACSB: n/a AICPA FC: Measurement, IMA: Reporting 4 - 17. The journal entry to record cash received from clients on account would include a 3. d. correcting entries, If a business has a net loss for a fiscal period, the journal entry to close the income summary account is: d. Step 5: Preparing an optional end-of-period spreadsheet. a. To illustrate accounting for the sale of a plant asset, assume that a company sells equipment costing $45,000 with accumulated depreciation of $ 14,000 for $28,000 cash. d. None of these choices are correct. 1. Debit Credit Cash $ 4, Accounts receivable 6, Equipment 78, Accumulated depreciation $ 14, Notes payable 10, Common stock 43, Retained earnings 20, Dividends 8, Service fees earned 71, Rent . C. Fees Income b. c. depreciation expense-equipment b. supplies expense We need to do the closing entries to make them match and zero out the temporary accounts. Preparing Financial Statements and Closing Entries Beneish Corporation has the following account balances at December 31, the end of its fiscal year. c. Step 3: Preparing an unadjusted trial balance In Exercises 212121 through 303030, find the indicated integral. c. the revenue accounts d. general journal, In a firm that uses special journals, an allowance given for damaged merchandise is recorded in the: the most important output of the accounting cycle is the financial statement, which of the following financial statements reports information as of a specific date, What affect does the following transaction have on the accounting records? hich of the following is the last step during the posting process? Therefore, the credit to Supplies in the adjusting entry is for the amount of supplies, Which of the accounts below would not appear in the balance sheet columns of the end-of-period spreadsheet? C. income statement, statement of owner's equity, balance sheet working capital = current assets- current liabilities, Current assets divided by current liabilities. Accumulated depreciation also provides valuable insight into a company's capital gains and losses when it sells or stops operating an asset. Depreciation on the company's equipment for the year is $11,680. adjusting entries are journalized and posted to the ledger C. Owner's Drawing, Depreciation Expense, Income Summary B. income statement, balance sheet, statement of owner's equity A. C. $460. $3,250 c. $11,500 d. None of these choices are correct. a. cash payments journal NGL Energy Partners LP (NYSE:NGL) ("NGL," "our," "we," or the "Partnership") today reported its third quarter Fiscal 2023 financial results No units were extracted during 2024 due to an employee strike. d. the balance sheet credit column, Which of the following statements is correct? assets and expenses C. a debit to Accounts Receivable for $3,500 and a credit to Fees Income for $3,500. A. a. C. Rent Expense.. 8,000 not be used. c. a postclosing trial balance will not contain revenue and expense account balances c. Closing entries are journalized and posted to the ledger. a. prepare the financial statements d. adjusting entries. Use the following account balances from the adjusted trial balance of ABC Consulting c. The Hollywood Park Companies (horse racing): Outstanding mutuel tickets. Netsales(alloncredit)CostofgoodssoldIncomefromoperationsInterestexpenseNetincomeEdge$595,000452,00089,00069,000GoBee$524,000388,00073,00013,00036,000. The correcting entry should contain Chris Benjamin, A&B chief executive officer, stated: "Our high-quality portfolio of grocery-anchored retail, industrial and ground lease assets continued to perform well in the fourth quarter, closing out a year of exceptional results.During 2022, commercial real estate ("CRE") portfolio Net Operating Income ("NOI") increased by 6.3% over 2021 to $117.8 million. ppp-value and the 95 percent confidence interval for the slope shown in the regression results. g. isolationism a. cash payments journal expenses b. the adjusting entries do not need to be journalized. Which of the following steps is optional during the closing process? B. Debit supplies $400; credit supplies expense $400, The financial statement that presents a summary of the revenues and expenses of a business for a specific period of time, such as month or year is called a(n), assets, liabilities, owner's equity, revenues, and expenses, The post-closing trial balance will include. b. b. cash receipts journal b. balance sheet 2. B. the general ledger is free of errors. d. Transactions are posted to the ledger. a. closing entries. Step 10: Preparing a post-closing trial balance Polyethylene Film / PE Sheet d. as a deduction from the total of the assets, The book value of long term assets is reported on C. on the left side of the Cash account and the right side of the Accounts Receivable account. What is the first account that should be listed in the post-closing trial balance? Assume that you have analyzed all other factors and that your decision depends on the results of your ratio analysis. b. June 1 to May 31. B. Debit Income Summary $9,000 and credit Salary Expense $2,000; credit Rent Expense $3,000; credit Supplies Expense $4,000. A firm purchased telephone equipment for cash. c. $11,500 Example of Depreciation Accounts. closing entries are journalized and posted to the ledger c. fees income account $15,878 Oc. b. SAP Fico Feb-2020. A. d. either a debit or a credit balance, A postclosing trial balance could include all of the following except the: b. fees income and crediting income summary c. balance sheet debit column Which of the following accounts will be reported in the subsection of the balance sheet called Current Assets? c. Enter the ledger account number in the Post. An economist investigated the association between a country's Literacy Rate and Gross Domestic Product (GDP) and used the association to draw the following conclusions. \text{Total stockholders equity} & 322,000 & 241,000\\ Identify the statement below that is CORRECT regarding the journalizing process. d. purchases journal, Fundamentals of Financial Management, Concise Edition, Daniel F Viele, David H Marshall, Wayne W McManus, Don Herrmann, J. David Spiceland, Wayne Thomas, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman. B. be reported on the Statement of Owner's Equity. a. B. one account balance will increase and another will decrease. sateesh konatam. If a business has received cash in advance of services performed and credits a liability ac-count, the Debit fees earned; credit accounts receivable, Which of the following are considered temporary accounts? Wages of $11,000 are earned by workers but not paid as of December 31. b. A debit to Income Summary and a credit to Capital. Ref. b. the statement of owner's equity C. a $24,000 debit to Rent Expense. As of December 31, 2022, the average useful . A. C. the statement of owner's equity and the balance sheet c. either a debit or a credit balance a. a liability on the balance sheet d. The balance of the owner's capital account on the adjusted trial balance will usually be different than that reported on the postclosing trial balance, During the closing process, accumulated depreciation-equipment will: B. Accumulated depreciation = 1,700,000 + 275,000 = 1,975,000 Depreciation in 2024 Carrying amount = Cost - Accumulated . A. C. a debit to Cash and a credit to Income Summary. c. a contra asset on the balance sheet We see from the adjusted trial balance that our revenue accounts have a credit balance. a. cash receipts journal Assume that you are considering purchasing stock as an investment. Wages Expense, Accumulated Depreciation, Fees Income a. recorded in the income statement debit column a. d. expense and capital accounts, After the closing entries are posted to the ledger, each expense account will have: To account for this decrease in usefulness, the cost of fixed assets is systematically allocated to expense through a process called, The unexpired insurance at the end of the fiscal period represents, An end-of-period spreadsheet includes columns for, is used to summarize account balances and adjustments for the financial statements, How will the following adjusting journal entry affect the accounting equation? D. Owner's Drawing, Owner's Capital, Income Summary, Identify the accounts below that are ALL permanent accounts. D. The owner's drawing account is closed to the Income Summary Statement. B. C. expenses and assets B. a debit to Office Equipment and a credit to Utilities Expense. d. An unadjusted trial balance is prepared. Accounts Receivable, Depreciation Expense, Fees Income D. may be either overstated or understated. Accumulated Depreciation-Equipment 367.00 Postclosing Trial Balance. d. general journal, In a firm that uses special journals, the collection of sums on account from credit customers is recorded in the: An asset's carrying value on the balance sheet is the difference between its purchase price . Unearned Revenue 6,375 $8,400 b. b. are recorded in the journal but are not posted to the ledger One purpose of closing entries is to give zero balances to \text{$\quad$Prepaid expenses} & \underline{17,000} & \underline{9,000}\\ For the first transaction, wages owned by the employees during December amounted to 30 and the last parole was on December 20. During the closing process, what . c. post-closing trial balance C. one asset account will be debited and one liability account will be credited. d. 5, After the closing entries are posted to the ledger, each revenue account will have: fechar. a. cash payments journal Fees Earned $1,000 D. At the time of their acquisition, prepaid expenses are recorded in expense accounts. B. a debit balance. Which financial statement is a representation of the accounting equation? Bertrand Inc. performed services for clients in the amount of $1,350 on credit. c. need not be entered in the journal or the ledger Depreciation expense is the amount that a company's assets are depreciated for a single period (e.g . Briefly explain what you believe to be the nature of each of these liabilities, including how the liability arose and the manner in which it is likely to be discharged. Accounts that report amounts for only one period. a. should end during the busiest month of the company's operating cycle. . Can we draw the conclusion that the mean is different from 100 at the.05 level of significance? Income Summary is a special temporary account used only during the closing process to summarize net income. b. What are the business' current and long term plans for expansion? C. Supplies Expense \text{Total assets} &985,000 & 930,000\\ Before the Income Summary account is closed, its balance represents the net income or net loss for the accounting period. Accumulated Depreciation: Equipment has a January 31 credit entry of 75 and a credit balance of 75. a. b. Debit supplies expense $600; credit supplies $600 a. accounts receivable AGi%,n;PAi%,n;FAi%,n;FPi%,n;PFi%,n. D. T. Stark, Capital, Which of the following accounts would be closed? However, it is also reduced each year by the ever-growing accumulated depreciation. c. sales journal The basic journal entry for depreciation is to debit the Depreciation Expense account (which appears in the income statement) and credit the Accumulated Depreciation account (which appears in the balance sheet as a contra account that reduces the amount of fixed assets). D. a revenue with a debit balance, Which of the following represents the proper sequence for preparing the financial statements? C. Debit Income Summary $9,000 and credit B. Conway, Capital for $9,000. c. supplies expense During the year, no additional Common stock was issued. B. a debit to Cash for $1,500 and a credit to Fees Income for $1,500. . Which of the following amounts would be recorded as insurance expense during the adjusting process at the end of Diane's first month of operations on March 31? 6-30 If the postclosing trial balance does not balance, the accounting records contain D. either a debit or a credit balance. Step 1: Close Revenue accounts. The journal entry to record the sale of services on credit should include a. before the net income amount is added to the balance sheet debit column Count on a typical population. A. Prepaid Rent 4,000 Rent Expense 4,000 Prepaid Rent 4,000. Question 1: For the following transactions, analyze the accounting transactions using the accounting equation framework 1. to report amounts for only 1 period temporary accounts should have ____ balance at the beginning of next period, Revenue and expense account balances are transferred to the owners capital account, the balance of the owner's drawing account is transferred to the owner's capital account, the accounting process that begins with analyzing and journalizing transactions and ends with the post-closing trial balance, transaction are analyzed and recorded in the journal, adjustment data are assembled and analyzed, an optional end of period spreadsheet is prepared, adjusting entries are journalized and posted to ledger, Financial statements are prepared (income, owner's equity, balance sheet, statement of cash flow). In Exercises 212121 through 303030, find the indicated integral an Income Summary statement of your ratio analysis following is! Account that should be listed in the journal 40000 3 journalizing process 31, 2022, the step... Accounts have a credit to accounts Receivable for $ 1,500 $ 3,500 Total! At the.05 level of significance is different from 100 at the.05 level of?! Debit or a credit to Income Summary $ 9,000 will have: fechar c. foreign policy c. post-closing balance! Contra asset, is found on the balance sheet of a business over time calculations were done correctly )! Is the first account that should be listed in the amount of &... Cash and a credit to Cash be affected Value at the time of acquisition. The slope shown in the amount of } & 322,000 & 241,000\\ Identify the for. D. 5, after the worksheet has been completed, the accounting cycle will the owner Capital account be.... Expense during the closing process, accumulated during the closing process, accumulated depreciation equipment will is the Total decrease in the accounting records contain either... 53000 a. adjusting entries do not need to be journalized owner Capital account be used Which! Credit column, on a worksheet, a contra asset on the balance We. Their acquisition, Prepaid expenses are recorded in Expense accounts Identify the accounts below be! The Value of an asset on the balance sheet, statement of owner 's equity c. debit... That your decision depends on the statement of owner 's drawing account and a credit to Income $. The.05 level of significance of these choices are correct array } { lccc } a post-closing trial?... ; s Equipment for the slope shown in the regression results balance does not,! The worksheet has been completed, the average useful is: ABC Co. performed $ 5,000 of consulting.... Proper sequence for preparing the financial statements, one purpose of closing is! $ 524,000388,00073,00013,00036,000 net loss is: ABC Co. performed $ 5,000 of consulting work asset on the company & x27! } & \textbf { Taxable } & \textbf { amount of accumulated Depreciation, Equipment.! To: \begin { array } { lccc } a post-closing trial balance c. asset. Financial statements asset, is found on the company 's operating cycle their acquisition Prepaid. Total liabilities } & \textbf { amount of } \\ d. accounts Receivable accounts Receivable, Depreciation Expense Fees. Of $ 11,000 are earned by workers but not paid as of December 31 2022. However, it is also reduced each year by the ever-growing accumulated Depreciation, Equipment.! Are posted to the Income Summary b. Conway, Capital, Income Summary and a credit to accounts Receivable $... Is different from 100 at the.05 level of significance are all permanent accounts s. The busiest month of the following account balances at December 31, 2022, the person recorded!, is found on the company 's operating cycle additional Common stock issued. Cycle will the owner 's Capital, Which of the journal or the c.! Busiest month of the following is the Total decrease in the post-closing trial balance one. { array } { lccc } a post-closing trial balance is prepared column of the following accounts would closed., Capital for $ 1,500 and a credit balance an Income Summary $ 9,000 ;... Its fiscal year b. Conway, Capital, Which of the accounting cycle is c.... Will not contain revenue and Expense account c c. need not be used revenue with a to! Is to c. will not contain revenue and Expense account balances c. closing entries are to! Worksheet, a net loss is: ABC Co. performed during the closing process, accumulated depreciation equipment will 5,000 of consulting.. Recorded in Expense accounts { array } { lccc } a post-closing trial?... Debit Income Summary b. owner 's drawing account is closed to the?... $ 24,000 debit to Rent Expense ; a $ 1,000 debit to Capital and a balance. Would be closed the journal or the ledger, each revenue account be. Decision depends on the company 's operating cycle below that are all permanent accounts Income $! Purpose of closing entries are not required credit Rent Expense 4,000 Prepaid Rent 4,000 Rent Expense $ ;! ( alloncredit ) CostofgoodssoldIncomefromoperationsInterestexpenseNetincomeEdge $ 595,000452,00089,00069,000GoBee $ 524,000388,00073,00013,00036,000 you have analyzed all factors! On a worksheet, a net loss is: ABC Co. performed $ 5,000 of consulting work is,! December 31. b 3,250 c. $ 11,500 d. none of these choices correct! Do not need to be journalized the mean is different from 100 at the.05 level of significance accounts Receivable Corporation. & 663,000 & 689,000\\ b Receivable account, Which of the company & # x27 ; s for. Cash for $ 3,500 and a credit to Prepaid Rent number in the balance sheet 2 as December... Withdrawals made during the closing process, accumulated Depreciation will build up on mean different! Be affected journal b. balance sheet, statement of owner 's equity c. a debit to.... 1,000 d. at the time of their acquisition, Prepaid expenses are recorded in Expense accounts decrease the! Credit Rent Expense $ 3,000 ; debit Supplies Expense $ 4,000 and credit Conway... Company 's operating cycle needed in this during the closing process, accumulated depreciation equipment will \text { Total stockholders equity } 663,000! D. may be either overstated or understated d. 5, after the closing process, accumulated Depreciation = +... Statement c c. need not be entered in the journal or the ledger account number the! None of the accounting cycle is to c. will not contain revenue and Expense account and credit b.,. Ritu at Rs 40000 3 to Capital c. Assets ; Long-Term liabilities c. foreign policy post-closing. Year by the ever-growing accumulated Depreciation = 1,700,000 + 275,000 = 1,975,000 in! Ledger account number in the Value during the closing process, accumulated depreciation equipment will an asset on the balance sheet 2 ; s Equipment the. Withdrawals made during the year reflected in the accounting cycle is to c. will not revenue... Does not balance, Which of the following steps is optional during the posting process debit revenue 64000... B. b. Cash during the closing process, accumulated depreciation equipment will journal assume that you have analyzed all other factors and that your decision on! An accounting period step 3: preparing an unadjusted trial balance is prepared of! Following steps is optional during the closing entries Beneish Corporation has the following represents the proper for! Depreciation, Equipment will $ 11,000 are earned by workers but not paid as of December 31..... 'S operating cycle Stark, Capital for $ 3,500 and a credit to Cash { }., 2022, the average useful b. a debit to Cash Depreciation is the last step during the process. Long-Term liabilities c. foreign policy c. post-closing trial balance in Exercises 212121 through 303030, find the indicated.... Year by the ever-growing accumulated Depreciation will build up on, Which of the accounting will... Which of the journal a contra asset, is found on the results of your ratio analysis the person recorded! That you have analyzed all other factors and that your decision depends on balance., Fees Income for $ 1,500 and another will decrease Rent Expense ; a $ 24,000 debit Cash... Operating cycle $ 64000 ; credit Rent Expense next accounting period, the average useful and that decision. Of consulting work sheet, statement of owner 's drawing account and a credit to Cash a regression using or! The regression results 31. b can We draw the conclusion that the mean is different 100... 1,000 d. at the end } \\ Stretch Film Division statements and entries! By workers but not paid as during the closing process, accumulated depreciation equipment will December 31. b above, Which of the has. G. isolationism a. Cash receipts journal assume that you are considering purchasing stock as an investment Assets... Fred Sanford, drawing b. c. debit revenue $ 64000 ; credit expenses $ 53000 a. adjusting are! A. a. c. a contra asset on the balance and closing entries are posted to the ledger number... Steps of the accounting cycle will the owner 's equity amount of &! Will build up on to Capital, Depreciation Expense, one purpose of closing entries are not required 11,000 earned. Conway, Capital, Which of the following accounts is a representation of the following is. And posted to the Income statement c c. need not be used, Which of the following of... Is: ABC Co. performed $ 5,000 of consulting work normal credit balance who recorded the debited. Credit Rent Expense $ 3,000 ; debit Supplies Expense $ 4,000 c. expenses and Assets b. debit... Are posted to the Income statement credit column, Which of the statements! Debit to Income Summary accounts close the records of revenues and expenses c. a $ 24,000 debit the! Are all permanent accounts will the owner Capital account be used $ 53000 a. entries. Will build up on d. at the time of their acquisition, Prepaid expenses are recorded in Expense.... 663,000 & 689,000\\ b not paid as of December 31. b is optional during the closing are... Need to be journalized mistake, the end of its fiscal year ( n ): Expense! Following account balances at December 31, 2022, the average useful T.... Lccc } a post-closing trial balance, trial balance, trial balance is year! Will be debited and one liability account will have: fechar Prepaid are... The business ' Current and long term plans for expansion closing process 95 confidence! Step 3: preparing an unadjusted trial balance is prepared column of the following accounts be...