Explanation Closing Entries: Closing entries are the entries which are recorded to transfer the net income and net loss to owner’s capital account. The purpose of closing entry is to bring down the balance of temporary accounts to zero. d. Revenue, drawing and expense accounts are temporary accounts and their balance is reduced to zero after closing. Revenue and expense accounts are adjusted with income summary account and drawing account is adjusted with capital account. a. Asset and liability accounts are permanent account and their balance is carried forward to the next accounting period...

4th Edition

ISBN: 9781260255157

Author: Haddock

Publisher: MCG CUSTOM

See similar textbooks

Concept explainers

The Effect Of Prepaid Taxes On Assets And Liabilities

Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can resu…

Final Accounts

Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.

Ledger Posting

A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the a…

Trial Balance and Final Accounts

In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately…

Adjustment Entries

At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial repor…

Videos

Question

Chapter 6, Problem 1.5SRE

To determine

Identify the account which has zero balance after closing.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 6, Problem 1.4SRE

Chapter 6, Problem 1.6SRA

Students have asked these similar questions

When a Liability is reduced or decreased, it is recorded on the? a. Right or debit side of the account b. Right or credit side of the account c. Left or debit side of the account d. Left or credit side of the account

Allowance for Doubtful Accounts is classified as a(n) ______ account and has a normal ______ balance. a. contra asset, debit b. contra asset, credit c. owner's equity, credit d. owner's equity, debit

Allowance for doubtful accounts is an example of a. Asset account b. Expense account c. Contra asset account d. Liability account

Chapter 6 Solutions

COLLEGE ACCOUNTING (LL)W/ACCESS>CUSTOM<

Ch. 6 - What is the journal entry to close the drawing...Ch. 6 - How is the Income Summary account classified?Ch. 6 - Prob. 1.3SRQ Ch. 6 - Prob. 1.4SRE Ch. 6 - Prob. 1.5SRE Ch. 6 - Prob. 1.6SRA Ch. 6 - Prob. 2.1SRQ Ch. 6 - Prob. 2.2SRQ Ch. 6 - What accounts appear on the post-closing trial...Ch. 6 - Prob. 2.4SRE

Ch. 6 - Prob. 2.5SRE Ch. 6 - On which financial statement would you find the...Ch. 6 - Prob. 1CSR Ch. 6 - A firm has the following expenses: Rent Expense,...Ch. 6 - Prob. 3CSR Ch. 6 - What is the last step in the accounting cycle?Ch. 6 - Is the following statement true or false? Why? All...Ch. 6 - Prob. 1DQ Ch. 6 - Prob. 2DQ Ch. 6 - What accounts appear on a postclosing trial...Ch. 6 - Prob. 4DQ Ch. 6 - Prob. 5DQ Ch. 6 - Prob. 6DQ Ch. 6 - Prob. 7DQ Ch. 6 - How is the Income Summary account used in the...Ch. 6 - Briefly describe the flow of data through a simple...Ch. 6 - Prob. 10DQ Ch. 6 - Prob. 1E Ch. 6 - Accounting cycle. Following are the steps in the...Ch. 6 - Prob. 3E Ch. 6 - Prob. 4E Ch. 6 - Prob. 5E Ch. 6 - Prob. 6E Ch. 6 - Prob. 7E Ch. 6 - Prob. 8E Ch. 6 - Prob. 1PA Ch. 6 - Prob. 2PA Ch. 6 - Prob. 3PA Ch. 6 - Prob. 4PA Ch. 6 - Prob. 1PB Ch. 6 - Prob. 2PB Ch. 6 - Prob. 3PB Ch. 6 - Prob. 4PB Ch. 6 - The Trial Balance section of the worksheet for...Ch. 6 - Demetria Davis, the bookkeeper for Home Interiors...Ch. 6 - Prob. 1MF Ch. 6 - Prob. 2MF Ch. 6 - Why is it important that a firms financial records...Ch. 6 - Prob. 4MF Ch. 6 - Prob. 1ED Ch. 6 - Prob. 1IC Ch. 6 - Prob. 1MPS

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Identify the account which has zero balance after closing.

Solution Summary: The author explains that closing entries are recorded to transfer the net income and net loss to owner’s capital account. Revenue, drawing and expense accounts are temporary accounts and their balance is reduced to zero after closing.

Concept explainers

Videos

Identify the account which has zero balance after closing.

Want to see the full answer?

Chapter 6 Solutions