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Question 2 Presented below are the year-end balances at December 31 of Fast Forward. (All accounts have normal balances.) Cash Dr. Cr. $20,000 Accounts receivable 10,000 Office supplies 4,000 Office equipment 30,000 Accumulated depreciation-Office equipment $5,000 Long-term notes payable 25,000 D. Chambers, Capital 30,000 D. Chambers, Withdrawals 1,000 Fees earned 51,000 Salaries expense 20,000 Rent expense 16,000 Depreciation expense-Office equipment 4,000 Advertising expense 4,000 Office supplies expense 2,000 Totals $111.000 $111.000 Required: Part AL 1. Explain the difference between temporary and permanent accounts. 2. List all the accounts that would be included in a post-closing trial balance in the above table. Part B 1. Prepare the four closing entries necessary at December 31. 2. Calculate the post-closing trial balance for D. Chambers, Capital, Detailed calculation process is required.

Question 2 Presented below are the year-end balances at December 31 of Fast Forward. (All accounts have normal balances.) Cash Dr. Cr. $20,000 Accounts receivable 10,000 Office supplies 4,000 Office equipment 30,000 Accumulated depreciation-Office equipment $5,000 Long-term notes payable 25,000 D. Chambers, Capital 30,000 D. Chambers, Withdrawals 1,000 Fees earned 51,000 Salaries expense 20,000 Rent expense 16,000 Depreciation expense-Office equipment 4,000 Advertising expense 4,000 Office supplies expense 2,000 Totals $111.000 $111.000 Required: Part AL 1. Explain the difference between temporary and permanent accounts. 2. List all the accounts that would be included in a post-closing trial balance in the above table. Part B 1. Prepare the four closing entries necessary at December 31. 2. Calculate the post-closing trial balance for D. Chambers, Capital, Detailed calculation process is required.

Financial Accounting: The Impact on Decision Makers
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter7: Receivables And Investments
Section: Chapter Questions
Problem 7.17E
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Question 2 Presented below are the year-end balances at December 31 of Fast Forward. (All accounts have normal balances.) Cash Dr. Cr. $20,000 Accounts receivable 10,000 Office supplies 4,000 Office equipment 30,000 Accumulated depreciation-Office equipment $5,000 Long-term notes payable 25,000 D. Chambers, Capital 30,000 D. Chambers, Withdrawals 1,000 Fees earned 51,000 Salaries expense 20,000 Rent expense 16,000 Depreciation expense-Office equipment 4,000 Advertising expense 4,000 Office supplies expense 2,000 Totals $111.000 $111.000 Required: Part AL 1. Explain the difference between temporary and permanent accounts. 2. List all the accounts that would be included in a post-closing trial balance in the above table. Part B 1. Prepare the four closing entries necessary at December 31. 2. Calculate the post-closing trial balance for D. Chambers, Capital, Detailed calculation process is required.
Transcribed Image Text:Question 2 Presented below are the year-end balances at December 31 of Fast Forward. (All accounts have normal balances.) Cash Dr. Cr. $20,000 Accounts receivable 10,000 Office supplies 4,000 Office equipment 30,000 Accumulated depreciation-Office equipment $5,000 Long-term notes payable 25,000 D. Chambers, Capital 30,000 D. Chambers, Withdrawals 1,000 Fees earned 51,000 Salaries expense 20,000 Rent expense 16,000 Depreciation expense-Office equipment 4,000 Advertising expense 4,000 Office supplies expense 2,000 Totals $111.000 $111.000 Required: Part AL 1. Explain the difference between temporary and permanent accounts. 2. List all the accounts that would be included in a post-closing trial balance in the above table. Part B 1. Prepare the four closing entries necessary at December 31. 2. Calculate the post-closing trial balance for D. Chambers, Capital, Detailed calculation process is required.
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