FINANCIAL ACCT.FUND.(LOOSELEAF)
7th Edition
ISBN: 9781260482867
Author: Wild
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 3, Problem 18DQ
To determine
Closing Entries: Closing entries are entries passed in the books of account for closing the books at the end of the accounting period. Closing entries involve transfer of balance from temporary accounts such as revenue and expense account to permanent account by creating a transitional account, income summary account.
Income Summary Account: Income summary account is an account created at the closing of accounting period where the closing balances of revenue and expense from income statement account are shifted in order to compute the net balance of revenue and expenses. The net balance of this account is transferred to capital account. Hence it ensures that balance of the next accounting period appear zero.
To prepare:
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
On January 1, 2024, Rick's Pawn Shop leased a truck from Corey Motors for a six-year period with an option to extend the lease for
three years.
• Rick's had no significant economic incentive as of the beginning of the lease to exercise the three-year extension option. Annual
lease payments are $12,000 due on December 31 of each year, calculated by the lessor using a 7% discount rate.
. The expected useful life of the asset is nine years, and its fair value is $90,000.
. Assume that at the beginning of the third year, January 1, 2026, Rick's had made significant improvements to the truck whose
cost could be recovered only if it exercises the extension option, creating an expectation that extension of the lease was
"reasonably certain."
The relevant interest rate at that time was 8%.
Note: Use tables, Excel, or a financial calculator. (FV of $1. PV of $1. FVA of $1. PVA of $1. EVAD of $1 and PVAD of $1)
Required:
1. Prepare the journal entry, if any, on January 1 and on December 31 of…
View
History
Bookmarks
Window
Help
ezto.mheducation.com
Educo Content Framework
Consider a company that..
Lesson 9.2 Practice Mod..
uiz A
Saved
Help
Save & Exit
MC Qu. 8-45 Assume Zap Industries reported the following...
Assume Zap Industries reported the following adjusted account balances at year-end.
2019
$2,496,320 $1,937,472
(126,400)
$2,369,920 $1,834,112
2018
Accounts Receivable
Allowance for Doubtful Accounts
Accounts Receivable, Net
(103,360)
Assume the company recorded no write-offs or recoveries during 2019. What was the amount of Bad Debt Expense reported
in 2019?
Multiple Choice
$103,360
APR
25
étv S
MacBook
000
DD
80
F7
F8
F9
F10
F3
F4
F5
F6
*
%24
4.
6
7
8.
engageNOWv2 | Online teachir X
* CengageNOWv2| Online teachir x
.com/ilrm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogre. *
A eBook
Show Me How
Accounts Receivable Analysis
A company reports the following:
Sales
$671,600
Average accounts receivable (net)
67,160
Determine (a) the accounts receivable turnover and (b) the number of days' sales in receivables. Round interim calculations to the nearest dollar and final
answers to one decimal place. Assume a 365-day year.
a. Accounts receivable turnover
b. Number of days' sales in receivables
days
Previous
Next
Check My Work
11:16 AM
67°F Sunny A O E D a ) 12/3/2021
n sc
hone
backsoce
Chapter 3 Solutions
FINANCIAL ACCT.FUND.(LOOSELEAF)
Ch. 3 - A company forgot to record accrued and unpaid...Ch. 3 - Prior to recording adjusting entries, the Supplies...Ch. 3 - Prob. 3MCQCh. 3 - On November 1, Stockton Co. receives $3,600 cash...Ch. 3 - Prob. 5MCQCh. 3 - Prob. 1DQCh. 3 - Prob. 2DQCh. 3 - Prob. 3DQCh. 3 - Prob. 4DQCh. 3 - Prob. 5DQ
Ch. 3 - Prob. 6DQCh. 3 - Prob. 7DQCh. 3 - Prob. 8DQCh. 3 - Prob. 9DQCh. 3 - Prob. 10DQCh. 3 - Prob. 11DQCh. 3 - Prob. 12DQCh. 3 - Prob. 13DQCh. 3 - Prob. 14DQCh. 3 - Prob. 15DQCh. 3 - Prob. 16DQCh. 3 - Prob. 17DQCh. 3 - Prob. 18DQCh. 3 - Prob. 1QSCh. 3 - Prob. 2QSCh. 3 - Prob. 3QSCh. 3 - Prob. 4QSCh. 3 - Prob. 5QSCh. 3 - Prob. 6QSCh. 3 - Prob. 7QSCh. 3 - Prob. 8QSCh. 3 - Prob. 9QSCh. 3 - Prob. 10QSCh. 3 - Prob. 11QSCh. 3 - Prob. 12QSCh. 3 - Prob. 13QSCh. 3 - Prob. 14QSCh. 3 - Prob. 15QSCh. 3 - Prob. 16QSCh. 3 - Prob. 17QSCh. 3 - Prob. 18QSCh. 3 - Prob. 19QSCh. 3 - Prob. 20QSCh. 3 - Prob. 21QSCh. 3 - Prob. 22QSCh. 3 - Preparing a classified balance sheet C3 Use the...Ch. 3 - Prob. 24QSCh. 3 - Prob. 25QSCh. 3 - Prob. 26QSCh. 3 - Prob. 27QSCh. 3 - Prob. 28QSCh. 3 - Prob. 1ECh. 3 - Prob. 2ECh. 3 - Prob. 3ECh. 3 - Prob. 4ECh. 3 - Prob. 5ECh. 3 - Prob. 6ECh. 3 - Prob. 7ECh. 3 - Prob. 8ECh. 3 - Prob. 9ECh. 3 - Prob. 10ECh. 3 - Prob. 11ECh. 3 - Prob. 12ECh. 3 - Prob. 13ECh. 3 - Prob. 14ECh. 3 - Prob. 15ECh. 3 - Preparing unadjusted and adjusted trial balances,...Ch. 3 - Prob. 17ECh. 3 - Prob. 1PSACh. 3 - Prob. 2PSACh. 3 - Prob. 6PSACh. 3 - Prob. 7PSACh. 3 - Prob. 1PSBCh. 3 - Prob. 2PSBCh. 3 - Prob. 3PSBCh. 3 - Preparing financial statements from adjusted trial...Ch. 3 - Prob. 5PSBCh. 3 - Preparing closing entries and financial statements...Ch. 3 - Determining balance sheet classifications C3 In...Ch. 3 - After the success of the company’s first two...Ch. 3 - Prob. 1GLPCh. 3 - Prob. 2GLPCh. 3 - Prob. 3GLPCh. 3 - Prob. 4GLPCh. 3 - Prob. 5GLPCh. 3 - Prob. 1AACh. 3 - Prob. 2AACh. 3 - Prob. 3AACh. 3 - Prob. 1BTNCh. 3 - Prob. 2BTNCh. 3 - Prob. 3BTNCh. 3 - Prob. 4BTNCh. 3 - Prob. 5BTNCh. 3 - Prob. 6BTN
Knowledge Booster
Similar questions
- X S D.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launch cel-Extra Credit i Question 1 - Ch 02 Excel-Extra Cr x D+Z 32 33 34 35 36 37 38 39 40 41 42 43 ^^ Trial Balance A B C D 20 1. Prepare an Income Statement for the month ended January 31, 20X1. Use cell references 21 to select account titles and amounts to be included on the income statement. 22 Note: List revenues and expenses in order of largest to smallest dollar amounts. 23 READING READINESS Company Income Statement For the Month Ended January 31, 20X1 Revenues: Test Prep Revenue Tutoring Revenue Other Revenues Total Revenues Expenses: Operating Expense Salaries Expense Rent Expense Other Expenses Insurance Expense Total Expenses 24 2. After entering the formula in cell C42, use the Excel IF function to label cell B42 as either "Net Income" or 25 "Net Loss" as appropriate based on the value calculated in cell C42. 26 27 28 29 30 31 $ $ O Saved Prev Url=https%253A%252F%252Fnewconnect.mheducation.com%25 O…arrow_forwardRefer to Apple’s balance sheet. What is the amount of Apple’s accounts payable as of September 30, 2017?arrow_forward16) When creating a new QuickBooks data file for an existing company, QuickBooks automatically offsets accounts receivable balances with an entry to the:A) Uncategorized Expenses accountB) Uncategorized Income accountC) Opening Balance Equity accountD) Capital Stock account Group of answer choices A B C Darrow_forward
- Q9 E4.3 E4.4 E4.8 E4.9 E4.13 Titles Cha E4.3 (LO 1, 4), AP Worksheet data for DeSousa Company are presented in E4.2. Instructions Prepare an income statement, a retained earnings statement, and a balance sheet from the trial balance below. The Account names will be from the Chart of Accounts tab, and the titles will be from the Title tab. Key Chart of Accounts Titles Dates Date Drop-Down Options For the Month Ended April 30, 2022 April 30, 2022 DeSousa Company Adjusted Trial Balance For the Month Ended April 30, 2022 Ассounts Debit Credit Cash 10,000 Accounts Receivable Prepaid Rent Equipment Accumulated Depreciation - Equipment 7,840 2,280 23,050 4,921 Notes Payable Accounts Payable Common Stock Retained Earnings 5,700 4,920 20,000 7,960 Dividends 3,650 Service Revenue 15,590 Salaries and Wages Expense Rent Expense 10,840 760 Depreciation Expense 671 Interest Expense 57 Interest Payable 57 Totals 59,148 59,148 DeSousa Company Income Statement DeSousa Company Statement of Retained…arrow_forwardP7 Record the necessary closing entries as of December 31, 2019 and then post the closing entries to the general ledger in Requirement 2B. Requirement 2B: https://imgur.com/a/e8LvE7q 1. Record the closure of revenue account(s). 2. Record the closure of expense account(s). 3. Record the closure of the income summary account. 4. Record the closure of the dividend account.arrow_forwardWhich one of the following journal entry is Correct on 1st January 2020? a. Debit Purchase OMR 11,400 Credit Accounts payable OMR 11,400 b. Debit Accounts receivable OMR 11,400 Credit Sales OMR 11,400 c. Debit Purchase OMR 12,000 Credit Accounts payable OMR 12,000 d. Debit Accounts payable OMR 12,000 Credit Purchase returns and allowances OMR 12,000arrow_forward
- The general ledger of Zips Storage at January 1, 2024, includes the following account balances: Accounts Cash Accounts Receivable Prepaid Insurance Land Accounts Payable! Deferred Revenue Common Stock Retained Earnings Totals Debits $25,500 16,300 13,800 157,000 $212,600 Credits $7,600 6,700 Pay property taxes, $9,400. Pay on accounts payable, $12,300. 152,000 46,300 $212,600 The following is a summary of the transactions for the year: 1. January 9 2. February 12 3. April 25 4. May 6 5. July 15 6. September 10 7. October 31 8. November 20 9. December 30 Provide storage services for cash, $143,100, and on account, $56,700. Collect on accounts receivable, $52,400. Receive cash in advance from customers, $13,800.. Purchase supplies on account, $11,000. Pay salaries, $132,600. Issue shares of common stock in exchange for $36,000 cash. Pay $3,700 cash dividends to stockholders. Insurance expired during the year is $7,900. Supplies remaining on hand at the end of the year equal $3,800.…arrow_forwarddors.google.com/forms 0 choose the right answer Journal lists transactions in which order? Increasing Alphabetical Chronological Decreasing O choose the right answer Which one of the following is called the book of original entry? Receipt and Payment Account O General Ledger General Journal Trial Balance ...arrow_forwardezto.mheducation.com awkes Learning | Home kamination II A Saved Help Polk Company uses a perpetual inventory system and had the following transactions during November: • November 6-Purchased $8,700 of inventory on account, terms 2/10, n/30. November 8-Returned $1,200 of defective units and received full credit. • November 15-Paid the amount due. 6.66 points What journal entry will be recorded by Polk Company on November 15? 01:08:56 Multiple Choice Debit Accounts Payable for $7,350, credit Inventory for $150, and credit Cash for $7,200 Debit Accounts Payable and credit Cash for $7,350 Debit Accounts Payable for $7,500, credit Inventory for $150, and credit Cash for $7,350 Mc Graw Hill ....... MacBook DII DD F4 F5 F6 F7 F8 F9 F1 F2 F3 @ %23 2$ & 2 3. 4 7 W E Y * 00 * LOarrow_forward
- A v2.cengagenow.com Law I (005) Click here for ACC-103-.. CengageNOWv2 | Onlin.. Beginning French II (001) A WebAssign Math 143 30. 143 Section 1.1 - Rectar eBook Show Me How Journalizing and Posting On September 18, 2019, Afton Company purchased $2,475 of supplies on account. In Afton Company's chart of accounts, the supplies account is No. 15, and the accounts payable account is No. 21. a. Journalize the September 18, 2019, transaction on page 87 of Afton Company's two-column journal. Page: 87 POST. DATE DESCRIPTION DEBIT CREDIT REF. Sept. 18, 2019 Supplies 15 2,475 Accounts Payable 21 2,475 V Feedback Check My Work a. First, identify what account is used and then what type of account is used. Every account is either an asset, liability, owner's equity, drawing, revenue, or expense account. Then determine whether the account increases or decreases. Each increase or decrease is recorded as a debit or credit following the rules of debit and credit. Remember total debits should equal…arrow_forwardSweet home Inc., includes the following selected accounts in its general ledger at December 31, screenshot attacahed thanks fas fakopearrow_forwardHelp Required information PA4-1 (Algo) Preparing a Trial Balance, Closing Journal Entry, and Post-Closing Trial Balance [LO 4-3, LO 4-5] [The following information applies to the questions displayed below.] Starbooks Corporation provides an online bookstore for electronic books. The following is a simplified list of accounts and amounts reported in its accounting records. The accounts have normal debit or credit balances. Assume the year ended on September 30, 2021. Accounts Payable Accounts Receivable $ 591 291 Accumulated Depreciation 891 Cash 291 Common Stock 191 Deferred Revenue 191 Depreciation Expense 291 Equipment 3, 191 Income Tax Expense 291 Interest Revenue 91 191 Notes Payable (long-term) Notes Payable (short-term) 491 91 Prepaid Rent 391 Rent Expense Retained Earnings 1,491 Salaries and Wages Expense 2,191 6,173 Service Revenue 491 Supplies. 191 Supplies Expense Travel Expense 2,591 PA4-1 (Algo) Part 2 Prepare the closing entry required at September 30, 2021. (If no entry…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning