HORNGREN'S FINANCIAL & MANGERIAL ACCOUNT
7th Edition
ISBN: 9780136505273
Author: MILLER-NOBLES
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 4, Problem 4.24E
To determine
Introduction:
Financial Statements: The financial statements of a company are prepared at the end of an accounting year to calculate the total liabilities, total assets, net profit or loss, and increase or decrease in cash during the year. The financial statements are used by various external and internal parties.
To calculate: The ending balance of the
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Preparing and Analyzing Closing Entries
At December 31, the ledger of Aulani Company includes the following accounts, all having normal balances: Sales Revenue, $59,800; Cost of Goods Sold, $31,400; Retained Earnings, $20,000; Interest Expense, $3,200; Dividends (declared and paid), $5,000; Wages Expense, $8,000, and Interest Payable, $2,100.
Required:
Prepare the closing entries for Aulani at December 31. If an amount box does not require an entry, leave it blank.
How does the closing process affect Aulani's retained earnings?
Can you help me with this excercise?
Preparing a classified Balance Sheet, making closing entries and preparing the post closing trial balance.
Prepare an income statement for the year ended December 31, 20Y5.
Answer
Check Figure: Net income, $137,400
Prepare a statement of stockholders’ equity for the year ended December 31, 20Y5. During the year, common stock of $25,000 was issued.
Prepare a balance sheet as of December 31, 20Y5.
Based upon the end-of-period spreadsheet, journalize the closing entries.
Prepare a post-closing trial balance
Two types of closing journal entries are posted to retained earnings at year-end. These are entries to:
Multiple Choice
transfer revenues and expenses to retained earnings.
transfer assets and liabilities to retained earnings.
transfer net income (or loss) and dividends declared to retained earnings.
close permanent and temporary accounts.
50
TBUR
Next
Chapter 4 Solutions
HORNGREN'S FINANCIAL & MANGERIAL ACCOUNT
Ch. 4 - Assets are listed on the balance sheet in the...Ch. 4 - Which of the following accounts would be included...Ch. 4 - Which situation indicates a net loss within the...Ch. 4 - Which of the following accounts is not closed? a....Ch. 4 - What do closing entries accomplish? a. Zero out...Ch. 4 - Which of the following is not a closing entry?Ch. 4 - Which of the following accounts may appear on a...Ch. 4 - Which of the following steps of the accounting...Ch. 4 - Clean Water Softener Systems has Cash of 600,...Ch. 4 - Which of the following statements concerning...
Ch. 4 - What document are financial statements prepared...Ch. 4 - Prob. 2RQCh. 4 - What does the statement of retained earnings show?Ch. 4 - Prob. 4RQCh. 4 - Why are financial statements prepared in a...Ch. 4 - Prob. 6RQCh. 4 - Prob. 7RQCh. 4 - Prob. 8RQCh. 4 - Prob. 9RQCh. 4 - How could a worksheet help in preparing financial...Ch. 4 - If a business had a net loss for the year, where...Ch. 4 - Prob. 12RQCh. 4 - What are temporary accounts? Are temporary...Ch. 4 - What are permanent accounts? Are permanent...Ch. 4 - How is the Income Summary account used? Is it a...Ch. 4 - What are the steps in the closing process?Ch. 4 - If a business had a net loss for the year, what...Ch. 4 - What types of accounts are listed on the...Ch. 4 - List the steps of the accounting cycle.Ch. 4 - What is the current ratio, and how is it...Ch. 4 - What are reversing entries? Are they required by...Ch. 4 - Prob. 4.1SECh. 4 - Preparing a statement of retained earnings Refer...Ch. 4 - Preparing a balance sheet (unclassified, account...Ch. 4 - Preparing a balance sheet (classified, report...Ch. 4 - Classifying balance sheet accounts For each...Ch. 4 - Using the worksheet to prepare financial...Ch. 4 - Prob. 4.7SECh. 4 - Prob. 4.8SECh. 4 - Prob. 4.9SECh. 4 - Prob. 4.10SECh. 4 - Prob. 4.11SECh. 4 - Prob. 4.12SECh. 4 - Identifying accounts included on a post-dosing...Ch. 4 - Identifying steps in the accounting cycle Review...Ch. 4 - Prob. 4.15SECh. 4 - Prob. 4.16SECh. 4 - Prob. 4.17ECh. 4 - Prob. 4.18ECh. 4 - Prob. 4.19ECh. 4 - Prob. 4.20ECh. 4 - Prob. 4.21ECh. 4 - Prob. 4.22ECh. 4 - Prob. 4.23ECh. 4 - Prob. 4.24ECh. 4 - Prob. 4.25ECh. 4 - Prob. 4.26ECh. 4 - Prob. 4.27ECh. 4 - Prob. 4.28ECh. 4 - Prob. 4.29APCh. 4 - Prob. 4.30APCh. 4 - Prob. 4.31APCh. 4 - Prob. 4.32APCh. 4 - Prob. 4.33APCh. 4 - Prob. 4.34APCh. 4 - Prob. 4.35BPCh. 4 - Prob. 4.36BPCh. 4 - Prob. 4.37BPCh. 4 - Prob. 4.38BPCh. 4 - Prob. 4.39BPCh. 4 - Prob. 4.40BPCh. 4 - Prob. 4.41CPCh. 4 - Prob. 4.42PSCh. 4 - Prob. 1COPCh. 4 - Prob. 2COPCh. 4 - Prob. 4.1CTEI
Knowledge Booster
Similar questions
- Preparing and Analyzing Closing Entries At December 31, the ledger of Aulani Company includes the following accounts, all having normal balances: Sales Revenue, $63,500; Cost of Goods Sold, $33,300; Retained Earnings, $20,000; Interest Expense, $3,200; Dividends (declared and paid), $5,000; Wages Expense, $8,000, and Interest Payable, $2,100. Required: 1. Prepare the closing entries for Aulani at December 31. If an amount box does not require an entry, leave it blank. Dec. 31 Sales Revenue Retained Earnings Dec. 31 Retained Earnings Cost of Goods Sold Interest Expense Wages Expense Dec. 31 Retained Earnings Dividends Feedback Check My Work 000 00 00 2. How does the closing process affect Aulani's retained earnings?arrow_forwardCan you help me? Prepare an income statement for the year ended December 31, 20Y5. Answer Check Figure: Net income, $137,400 Prepare a statement of stockholders’ equity for the year ended December 31, 20Y5. During the year, common stock of $25,000 was issued. Prepare a balance sheet as of December 31, 20Y5. Based upon the end-of-period spreadsheet, journalize the closing entries. Prepare a post-closing trial balancearrow_forwardSzabo Inc. has the following general ledger account balances at December 31, 2019: Dividends 3,000 Selling expenses 21,000 Service revenue 38,500 Unearned revenue 2,900 Unused supplies 2100 Utilities expense 3,600 Wages expense 6,900 Assuming this is the first year of operations, what is the balance in the RetainedEarnings account after the closing process?arrow_forward
- Closing entries with net income After all revenue and expense accounts have been closed at the end of t he 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 complete the closing of the accounts. (B) Determine the amount of Retained. Earnings at me end of the period.arrow_forwardAfter 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. Required: A. Journalize the entries required to complete the closing of the accounts on December 31. Refer to the Chart of Accounts for exact wording of account titles. B. Determine the amount of Retained Earnings at the end of the period. CHART OF ACCOUNTS General Ledger ASSETS 11 Cash 12 Accounts Receivable 13 Prepaid Insurance 14 Supplies 15 Land 16 Building 17 Accumulated Depreciation-Building 18 Equipment 19 Accumulated Depreciation-Equipment LIABILITIES 21 Accounts Payable 22 Salaries and Wages Payable 23 Unearned Rent EQUITY 31 Common Stock 32 Retained Earnings 33 Dividends 34 Income Summary REVENUE 41 Fees Earned…arrow_forwardClosing entries with net income Assume that the entry closing total revenues of $3,190,000 and total expenses of $2,350,000 has been made for the year. At the end of the fiscal year, Teresa Schafer, Capital has a credit balance of $1,885,000 and Teresa Schafer, Drawing has a balance of $770,000. (a). Journalize the entry required to close the Teresa Schafer, Drawing account. (b). Determine the amount of Teresa Schafer, Capital at the end of the period.arrow_forward
- A business like NetSolutions estimates customer refunds and allowances for each year’s sales that might be owed to customers the following year. The year-end balance is recorded on the ___________ as a ______________. Group of answer choices Statement of Owner's Equity; decrease in owner's equity Income Statement; current liability (Customer Refunds Payable) Balance Sheet; current liability (Customer Refunds Payable) Statement of Cash Flows; Operating Activityarrow_forwardPrior to recording the closing entries for January 31, 2022, Your Company's Retained Earnings account balance was $75,000. What was the balance after the closing entries are posted? Your Company Income Statement For the month ending, January 31, 2022 Revenue: Consulting revenue Total revenue Expenses Rent expense Salary expense Utilities expense Total expenses Net Income $5,600 800 1200 440 5,600 2440 $3,160arrow_forwarda. Prepare the necessary closing entries on December 31 of the current year. b. If Fick’s Retained earnings account had a $92,000 balance on at the beginning of the current year, at what amount should Retained Earnings be reported in the firm's year-end balance sheet dated December 31?arrow_forward
- The income statement for the Windsor, Inc. for the month ended July 31 shows Service Revenue $18,760, Salaries and Wages Expense $9,350, Maintenance and Repairs Expense $2,970, and Income Tax Expense $1,360. The statement of retained earnings shows an opening balance for Retained Earnings of $21,890 and Dividends $1,610. Prepare closing journal entries. What is the ending balance in Retained Earnings? Ending balance in Retained Earnings $enter the Ending balance in Retained Earnings in dollarsarrow_forwardThe Retained earnings account has a credit balance of $41,000 before closing entries are made. Total revenues for the period are $59,200, total expenses are $41,800, and dividends are $10,600. What is the correct closing entry for the revenue accounts? Multiple Choice Debit Revenue accounts $41,000; credit Retained earnings $41,000. Debit Revenue accounts $59,200; credit Income Summary $59,200. Debit Income Summary $59,200, credit Revenue accounts $59,200. Dahit Roionno arcnunte C5a 200 crelit Rotained earninge 41 000 < Prev 10 of 10 Next e here to search W P 9:40 PM 99% 2/21/202arrow_forwardClosing Entries and Completing the Accounting Cycle Define the following: Accounting cycle Closing entry End- of- period worksheet Fiscal business year Income Summary Natural business year Nominal account Permanent account List the steps to the accounting cycle Using the end- of- period spreadsheet for week 2- make all appropriate closing entries and post them to the spreadsheet. Prepare the Income Statement, Balance Sheet and Statement of Retained Earnings Name of Company End- of Period Spreadsheet (Worksheet) For the period ended Unadjusted Adjusted Closing Entires Post- closing Trial Balance Adjustments Trial Balance Income Statement Balance Sheet Trial Balance Account Title Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr Cash 2065 2065 2065 A/R 2220 (d) 500 2720 2720 Supplies 2000 (a) 1240…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
Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
Financial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
Financial Accounting
Accounting
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning