during the closing process, accumulated depreciation, equipment will:

b. True. Chapter – 6 During the closing process, Accumulated Depreciation, Equipment will be closed to the drawing account. Warton Company depreciates its equipment at the rate of $500 per month. B. be closed to the capital account. Income statement column 4. False. Depreciation Expense. 5. Accumulated depreciation formula after 3 rd year = Acc depreciation at the start of year 3 + Depreciation during year 3 = $40,000 + $20,000 = $60,000. Now there will be an adjusting entry if the depreciation expense is charges less or more from due to any reason. Accounting for depreciation to date of disposal When selling or otherwise disposing of a plant asset, a firm must record the depreciation up to the date of sale or disposal. If the depreciation is previously charge less from the original, then the entry should be. d. recording entries in a journal. On the statement of financial position it is shown as a reduction against the cost of non-current assets: Illustration 2 – Accounting for depreciation. a debit to Accumulated Depreciation and a credit to Prepaid Insurance. a debit to Prepaid Insurance and a credit to Accumulated Depreciation. D. not be used. Accumulated depreciation-equipment at 1/1/07 was $230,000. Accumulated Depreciation is a Contra Asset Account. Prepare closing entries and post. Adjusted Trial Balance, Credit b. Each year when the accumulated depreciation journal entry is recorded, the accumulated depreciation account is increased. Liquidation D. Hypothecation 6. Supplies Expense 1. Less-Accumulated Depreciation 70 $8330. 30. Accumulated Depreciation—Equipment : 14,000 Loss from Disposal of Plant Asset : 3,000 Equipment 45,000: To record the sale of equipment at a price less than book value. A. The asset cost minus accumulated depreciation is known as the book value (or “net book value”) of the asset. 3. reflects all depreciation to date. B. . Accumulated Depreciation Equipment QUESTION 21 After the closing entries are journalized and posted, which of the following accounts would NOT have a balance? Accumulated depreciation is the cumulative depreciation of an asset up to a single point in its life. Posting is the process of . b. Income statement column 159. Accumulated depreciation is a contra asset account (an asset account with a credit balance) that adjusts the book value of the capital assets. 3. a debit to Insurance Expense and a credit to Prepaid Insurance. Recording asset depreciation in this way recognizes the use of assets in your business during the accounting period. b. Example #2. You need to monitor depreciation in your financial records as well. $48,800 What is the balance in the Capital account? Income statement column 6. 19. The closing entries are the journal entry form of the Statement of Retained Earnings. a. Accountants may perform the closing process monthly or annually. 14,700. a. The accumulated depreciation account is a statement of financial position account and as the name suggests is cumulative, i.e. At 12/31/07 the balance of the account was $270,000. What is the balance in the rent revenue account? This entry will add the current year depreciation expense with the previous year closing balance. D) Unearned Rent . 29. c. transferring journal entries to ledger accounts. The closing entry will credit Supplies Expense, Depreciation Expense–Equipment, Salaries Expense, and Utility Expense, and debit Income Summary. Accumulated Depreciation 5. A) Depreciation Expense and Accumulated Depreciation?Equipment. The drawing account is closed to the income summary account. The books are closed annually on December 31. a. a debit to Equipment for $500. The equipment had an original cost of $40,000 and was 3/4 depreciated when sold. This process is called depreciation. Which one of the following accounts is both opened and closed during the closing process? a. You are to prepare the missing adjusting entry. a debit to Insurance Expense and a credit to Accumulated Depreciation. Allowance for doubtful accounts on 1/1/07 was $50,000. The entry also increases Accumulated Depreciation, which is the use of the asset and appears on the balance sheet under the Vehicles asset line. Depreciation C. Accretion B. Accumulated depreciation-equipment 54,250,000 Buildings 97,300,000 Equipment 150,250,000 Land 22,300,000 The company uses straight-line depreciation for buildings and equipment… 6. A. . At the end of the fiscal year, Accounts Receivable has a balance of $100,000 and Allowance for Doubtful Accounts has a balance of $7,000. C. be closed to the drawing account. During 201X, one piece of equipment was sold. By the end of the asset’s life, its cost has been fully depreciated and its net book value has been reduced to zero. False. The Vehicle asset line always shows the value of the asset at the time of purchase. 20. This … It has the following information related to its non-current assets: Non-current assets Date acquired Cost Accumulated depreciation RM RM Machinery A 1 July 2016 25.000 9,375 Office equipment 1 April 2018 20,000 3,000 Depreciation on machineries is at the rate of 15% per annum on … Depreciation on equipment for the month is $320. The following accounts were taken from the Adjusted Trial Balance columns of the work sheet: Accumulated Depreciation. During the audit of financial statements, auditors should make sure that the audit procedures that they prepare are addressing the risks of material misstatements that cause by depreciation expenses and other related items such as fixed assets. The equipment was sold for $25,000. Income Statement, Debit c. Balance Sheet, Debit d. Income Statement, Credit The goal is to make the posted balance of the retained earnings account match what we reported on the statement of retained earnings and start the next period with a zero balance for all temporary accounts. The January 31 entry to record depreciation expense would include . False. Balance sheet column 5. o During the closing process, revenue and expense accounts are cleared by debiting or crediting Income Summary for their amounts. True. $0 What Is The Balance In The Retained Earnings Account? For example, at December 31, 20X2, the net book value of the truck is $50,000, consisting of $150,000 cost less $100,000 of accumulated depreciation. You can generate several fixed asset accounts to accommodate equipment, machinery, land, and vehicles. These balances in post-closing T-accounts are transferred over to either the debit or credit column on the post-closing trial balance. Cash c. Accounts Payable d. Office Supplies QUESTION 22 After the accounts are closed and the journal entries have been posted, which of the following accounts would have a balance? 31. On the work sheet, Accumulated Depreciation, Equipment would be recorded in which of the following columns? Which of the following groups of accounts will have zero balances after the closing process is completed? Answer A. Assuming the retailer uses the straight-line depreciation method, during each month of the display racks' lives the retailer's monthly income statement will report depreciation expense of $1,000. True. b. adding a column of figures. Cash account C. Owner’s Capital account B. True. $0 During the closing process, what amount was transferred from the income summary account to the Capital account in the third closing entry (i.e., after revenue and expense accounts have been closed to Income Summary)? a. 6.2. Balance sheet column 7. Fees earned 6. a. $0 During the closing Only permanent account balances should appear on the post-closing trial balance. 62. During the closing process, Accumulated Depreciation, Equipment will A. be closed to the income summary account. Which of the following accounts has a normal debit balance?64. a. 0 Step 2: Determine what the current account balance should equal. Supplies 8. $73,010 account? Balance sheet column 2. Required: After The Closing Process Has Been Completed, Answer The Following Questions: What Is The Balance In The Supplies Expense Account? Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. c. The company has only one fixed asset (equipment) that it purchased at the start of this year. Accumulated Depreciation is a real account/balance sheet account. Company B is also selling its machine for $50,000, except they have not had it as long. The correct sequence of steps in the accounting cycle is to prepare the A. The end-of-period spreadsheet (work sheet) for the current year for Jamal Company shows Balance … B) … Question: The President Of Price Company Has Asked You To Close The Books (prepare And Process The Closing Entries). It has only accumulated $30,000 in depreciation. Question 1 Cee Enterprise is in the process of closing its account for the year ended 31 December 2019. Unearned Fees 7. False. C) Accumulated Depreciation. They would then debit the $30,000 as accumulated depreciation and the $50,000 as cash. The accumulated depreciation account is closed to the income summary account. Santa runs a large toy shop in Windsor. Accumulated Depreciation account D. Income Summary 7. Let us calculate the accumulated depreciation at the end of the financial year ended December 31, 2018, based on the following information: Gross Cost as on January 1, 2018: $1,000,000 Fees Earned. Balance sheet column 8. $ 2,300. The accumulated depreciation account is an asset account that shows the amount of depreciation for the current year only. One months worth … Service Revenue b. Presented below is the trial balance of the Crestwood Golf Club, Inc. as of December 31. The trial balance prepared after all the closing entries have been posted is called a pre-closing trial balance. Only nominal accounts are closed. A. a. preparing a chart of accounts. Balance sheet column 3. And this process will be carry on till the life of asset. In their books, they would record the $100,000 cost as a credit. Accumulated Depreciation-Office Equipment: 70: If not adjusted: Assets = Liabilities + Capital + Revenue-Expense = Capital: Over: over: under: Over : Balance Sheet Presentation Office Equipment $8400. The process of preparing the post-closing trial balance is the same as you have done when preparing the unadjusted trial balance and adjusted trial balance. Depreciation. The equipment had an original cost of $50,000 and was 1/2 depreciated when sold. All tools or machines undergo wear and tear over time. 4. During 2007, one piece of equipment was sold. Powell Company had the following adjusted trial balance: Account Titles Credit Cash Debit $20.390 17.800 Accounts Receivable Supplies 7,690 44,900 Equipment $ 7,100 Accumulated Depreciation Accounts Payable Deferred Rent Revenue 4,000 1,950 36,630 21,900 Capital Stock Retained Earnings Dividends 16,000 Commission Revenue 50,400 5,200 Rent Revenue 6,100 Depreciation Expense … The preparation of a post-closing trial balance serves as a check on the accuracy of the closing process and ensures that the books are in balance at the start of the new accounting period. Printing Plus has $100 of supplies expense, $75 of depreciation expense–equipment, $5,100 of salaries expense, and $300 of utility expense, each with a debit balance on the adjusted trial balance. 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Expense account Golf Club, Inc. as of December 31 as accumulated depreciation account is closed to drawing., Answer the following accounts Has a normal debit balance? 64 entry recorded! Journal entry is recorded, the accumulated depreciation? equipment either the debit credit.

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