The final step of the accounting cycle is the closing process. The main goal of this stage of the cycle is to ensure that the balance of each temporary account is returned to zero and that net income is transferred to the owner's capital account. The first step in successfully undertaking the closing process is to understand the difference between a temporary account and a permanent account. Roscoe has some questions about the process. Answer the following questions (1) - (3). 1. If a temporary account has an ending balance of $57,000, what is its beginning balance for the following accounting period? If there is no amount or an amount is zero, enter “0”. 2. If a permanent account has an ending balance of $57,000, what is its beginning balance for the following accounting period? Roscoe has attempted to prepare the closing entries for Chandler Company on the Roscoe’s Journal panel. He’s not sure if he’s entered the journal entries correctly, and asks you to review them. You find that one entry is correct, but the other is incorrect. Refer to the Chart of Accounts for exact wording of account titles. Determine which entry is incorrect, and journalize both closing entries for Chandler Company as of Dec. 31 in the following journal. Question not attempted. PAGE 25 JOURNAL ACCOUNTING EQUATION Score: 0/147 DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 Closing Entries 2 3 4 5 6 7 8 9 10 11 12 13 The post-closing trial balance shows all the permanent accounts with their updated values after the temporary accounts have been reduced to zero balance for the next accounting cycle. Also, the post-closing trial balance is meant to ensure that debits equal credits post-close. Roscoe is very happy with your work on the closing entries for Chandler Company, and asks if you would prepare a post-closing trial balance for the company. Question not attempted. Chandler Company POST-CLOSING TRIAL BALANCE Score: 0/39 December 31, 2018 ACCOUNT TITLE DEBIT CREDIT 1 Cash 2 Accounts Receivable 3 Prepaid Insurance 4 Equipment 5 Accumulated Depreciation-Equipment 6 Accounts Payable 7 Salaries Payable 8 Income Taxes Payable 9 Roscoe Chandler, Capital 10 Totals CHART OF ACCOUNTS Chandler Company General Ledger ASSETS 11 Cash 12 Accounts Receivable 16 Prepaid Insurance 18 Equipment 19 Accumulated Depreciation-Equipment LIABILITIES 21 Accounts Payable 22 Salaries Payable 24 Income Taxes Payable EQUITY 31 Roscoe Chandler, Capital 32 Roscoe Chandler, Drawing REVENUE 41 Fees Earned 42 Rent Revenue 43 Interest Revenue EXPENSES 51 Salaries Expense 52 Selling Expense 53 Income Taxes Expense 54 Depreciation Expense-Equipment 55 Insurance Expense 59 Miscellaneous Expense Before the closing entries are made, you begin with an adjusted trial balance. The closing entries are essentially the link from the adjusted trial balance to the post-closing trial balance. Chandler Company ADJUSTED TRIAL BALANCE December 31, 2018 ACCOUNT TITLE DEBIT CREDIT 1 Cash 76,000.00 2 Accounts Receivable 29,000.00 3 Prepaid Insurance 16,000.00 4 Equipment 60,000.00 5 Accumulated Depreciation-Equipment 40,000.00 6 Accounts Payable 6,000.00 7 Salaries Payable 8,000.00 8 Income Taxes Payable 4,000.00 9 Roscoe Chandler, Capital 20,000.00 10 Roscoe Chandler, Drawing 5,000.00 11 Fees Earned 175,600.00 12 Rent Revenue 92,000.00 13 Interest Revenue 17,200.00 14 Salaries Expense 71,000.00 15 Selling Expense 25,600.00 16 Income Taxes Expense 15,000.00 17 Depreciation Expense-Equipment 47,200.00 18 Insurance Expense 17,000.00 19 Miscellaneous Expense 1,000.00 20 Totals 362,800.00 362,800.00 Roscoe has attempted to prepare the closing entries for Chandler Company on this panel. He’s not sure if he’s entered the journal entries correctly, and asks you to review them. You find that one entry is correct, but the other is incorrect. Determine which entry is incorrect, and journalize both closing entries for Chandler Company as of Dec. 31 on the Journal panel. PAGE 25 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 Closing Entries 2 Dec. 31 Roscoe Chandler, Capital 461,600.00 ↓ 3 Fees Earned 175,600.00 ↑ 4 Rent Revenue 92,000.00 ↑ 5 Interest Revenue 17,200.00 ↑ 6 Salaries Expense 71,000.00 ↑ 7 Selling Expense 25,600.00 ↑ 8 Income Taxes Expense 15,000.00 ↑ 9 Depreciation Expense-Equipment 47,200.00 ↑ 10 Insurance Expense 17,000.00 ↑ 11 Miscellaneous Expense 1,000.00 ↑ 12 31 Roscoe Chandler, Capital 5,000.00 ↓ 13 Roscoe Chandler, Drawing 5,000.00
The final step of the accounting cycle is the closing process. The main goal of this stage of the cycle is to ensure that the balance of each temporary account is returned to zero and that net income is transferred to the owner's capital account. The first step in successfully undertaking the closing process is to understand the difference between a temporary account and a permanent account. Roscoe has some questions about the process. Answer the following questions (1) - (3). 1. If a temporary account has an ending balance of $57,000, what is its beginning balance for the following accounting period? If there is no amount or an amount is zero, enter “0”. 2. If a permanent account has an ending balance of $57,000, what is its beginning balance for the following accounting period? Roscoe has attempted to prepare the closing entries for Chandler Company on the Roscoe’s Journal panel. He’s not sure if he’s entered the journal entries correctly, and asks you to review them. You find that one entry is correct, but the other is incorrect. Refer to the Chart of Accounts for exact wording of account titles. Determine which entry is incorrect, and journalize both closing entries for Chandler Company as of Dec. 31 in the following journal. Question not attempted. PAGE 25 JOURNAL ACCOUNTING EQUATION Score: 0/147 DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 Closing Entries 2 3 4 5 6 7 8 9 10 11 12 13 The post-closing trial balance shows all the permanent accounts with their updated values after the temporary accounts have been reduced to zero balance for the next accounting cycle. Also, the post-closing trial balance is meant to ensure that debits equal credits post-close. Roscoe is very happy with your work on the closing entries for Chandler Company, and asks if you would prepare a post-closing trial balance for the company. Question not attempted. Chandler Company POST-CLOSING TRIAL BALANCE Score: 0/39 December 31, 2018 ACCOUNT TITLE DEBIT CREDIT 1 Cash 2 Accounts Receivable 3 Prepaid Insurance 4 Equipment 5 Accumulated Depreciation-Equipment 6 Accounts Payable 7 Salaries Payable 8 Income Taxes Payable 9 Roscoe Chandler, Capital 10 Totals CHART OF ACCOUNTS Chandler Company General Ledger ASSETS 11 Cash 12 Accounts Receivable 16 Prepaid Insurance 18 Equipment 19 Accumulated Depreciation-Equipment LIABILITIES 21 Accounts Payable 22 Salaries Payable 24 Income Taxes Payable EQUITY 31 Roscoe Chandler, Capital 32 Roscoe Chandler, Drawing REVENUE 41 Fees Earned 42 Rent Revenue 43 Interest Revenue EXPENSES 51 Salaries Expense 52 Selling Expense 53 Income Taxes Expense 54 Depreciation Expense-Equipment 55 Insurance Expense 59 Miscellaneous Expense Before the closing entries are made, you begin with an adjusted trial balance. The closing entries are essentially the link from the adjusted trial balance to the post-closing trial balance. Chandler Company ADJUSTED TRIAL BALANCE December 31, 2018 ACCOUNT TITLE DEBIT CREDIT 1 Cash 76,000.00 2 Accounts Receivable 29,000.00 3 Prepaid Insurance 16,000.00 4 Equipment 60,000.00 5 Accumulated Depreciation-Equipment 40,000.00 6 Accounts Payable 6,000.00 7 Salaries Payable 8,000.00 8 Income Taxes Payable 4,000.00 9 Roscoe Chandler, Capital 20,000.00 10 Roscoe Chandler, Drawing 5,000.00 11 Fees Earned 175,600.00 12 Rent Revenue 92,000.00 13 Interest Revenue 17,200.00 14 Salaries Expense 71,000.00 15 Selling Expense 25,600.00 16 Income Taxes Expense 15,000.00 17 Depreciation Expense-Equipment 47,200.00 18 Insurance Expense 17,000.00 19 Miscellaneous Expense 1,000.00 20 Totals 362,800.00 362,800.00 Roscoe has attempted to prepare the closing entries for Chandler Company on this panel. He’s not sure if he’s entered the journal entries correctly, and asks you to review them. You find that one entry is correct, but the other is incorrect. Determine which entry is incorrect, and journalize both closing entries for Chandler Company as of Dec. 31 on the Journal panel. PAGE 25 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 Closing Entries 2 Dec. 31 Roscoe Chandler, Capital 461,600.00 ↓ 3 Fees Earned 175,600.00 ↑ 4 Rent Revenue 92,000.00 ↑ 5 Interest Revenue 17,200.00 ↑ 6 Salaries Expense 71,000.00 ↑ 7 Selling Expense 25,600.00 ↑ 8 Income Taxes Expense 15,000.00 ↑ 9 Depreciation Expense-Equipment 47,200.00 ↑ 10 Insurance Expense 17,000.00 ↑ 11 Miscellaneous Expense 1,000.00 ↑ 12 31 Roscoe Chandler, Capital 5,000.00 ↓ 13 Roscoe Chandler, Drawing 5,000.00
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
The final step of the accounting cycle is the closing process. The main goal of this stage of the cycle is to ensure that the balance of each temporary account is returned to zero and that net income is transferred to the owner's capital account. The first step in successfully undertaking the closing process is to understand the difference between a temporary account and a permanent account. Roscoe has some questions about the process.
Answer the following questions (1) - (3).
1. If a temporary account has an ending balance of $57,000, what is its beginning balance for the following accounting period? If there is no amount or an amount is zero, enter “0”.
2. If a permanent account has an ending balance of $57,000, what is its beginning balance for the following accounting period?
Roscoe has attempted to prepare the closing entries for Chandler Company on the Roscoe’s Journal panel. He’s not sure if he’s entered the journal entries correctly, and asks you to review them. You find that one entry is correct, but the other is incorrect. Refer to the Chart of Accounts for exact wording of account titles.
Determine which entry is incorrect, and journalize both closing entries for Chandler Company as of Dec. 31 in the following journal.
Question not attempted.
PAGE 25
JOURNAL
ACCOUNTING EQUATION
Score: 0/147
| DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
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Closing Entries
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The post-closing trial balance shows all the permanent accounts with their updated values after the temporary accounts have been reduced to zero balance for the next accounting cycle. Also, the post-closing trial balance is meant to ensure that debits equal credits post-close.
Roscoe is very happy with your work on the closing entries for Chandler Company, and asks if you would prepare a post-closing trial balance for the company.
Question not attempted.
Chandler Company
POST-CLOSING TRIAL BALANCE
Score: 0/39
December 31, 2018
| ACCOUNT TITLE | DEBIT | CREDIT | |
|---|---|---|---|
|
1
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Cash
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2
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Accounts Receivable
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3
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Prepaid Insurance
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4
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Equipment
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5
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Accumulated
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6
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Accounts Payable
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7
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Salaries Payable
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8
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Income Taxes Payable
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9
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Roscoe Chandler, Capital
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10
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Totals
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| CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||
| Chandler Company | |||||||||||||||||||||||||||||||||||||||||||||||||
| General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||
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Before the closing entries are made, you begin with an adjusted trial balance. The closing entries are essentially the link from the adjusted trial balance to the post-closing trial balance.
Chandler Company
ADJUSTED TRIAL BALANCE
December 31, 2018
| ACCOUNT TITLE | DEBIT | CREDIT | |
|---|---|---|---|
|
1
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Cash
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76,000.00
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2
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Accounts Receivable
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29,000.00
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3
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Prepaid Insurance
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16,000.00
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4
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Equipment
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60,000.00
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5
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Accumulated Depreciation-Equipment
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40,000.00
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6
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Accounts Payable
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6,000.00
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7
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Salaries Payable
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8,000.00
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8
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Income Taxes Payable
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4,000.00
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9
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Roscoe Chandler, Capital
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20,000.00
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10
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Roscoe Chandler, Drawing
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5,000.00
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11
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Fees Earned
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175,600.00
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12
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Rent Revenue
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92,000.00
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13
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Interest Revenue
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17,200.00
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14
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Salaries Expense
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71,000.00
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15
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Selling Expense
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25,600.00
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16
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Income Taxes Expense
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15,000.00
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17
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Depreciation Expense-Equipment
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47,200.00
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18
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Insurance Expense
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17,000.00
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19
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Miscellaneous Expense
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1,000.00
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20
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Totals
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362,800.00
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362,800.00
|
Roscoe has attempted to prepare the closing entries for Chandler Company on this panel. He’s not sure if he’s entered the journal entries correctly, and asks you to review them. You find that one entry is correct, but the other is incorrect.
Determine which entry is incorrect, and journalize both closing entries for Chandler Company as of Dec. 31 on the Journal panel.
PAGE 25
JOURNAL
ACCOUNTING EQUATION
| DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
|---|---|---|---|---|---|---|---|---|
|
1
|
|
Closing Entries
|
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2
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Dec. 31
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Roscoe Chandler, Capital
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461,600.00
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↓
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3
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Fees Earned
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175,600.00
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↑
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4
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Rent Revenue
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92,000.00
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↑
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5
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Interest Revenue
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17,200.00
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↑
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6
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Salaries Expense
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71,000.00
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↑
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7
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Selling Expense
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25,600.00
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↑
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8
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Income Taxes Expense
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15,000.00
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↑
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9
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Depreciation Expense-Equipment
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47,200.00
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↑
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10
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Insurance Expense
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17,000.00
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↑
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11
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Miscellaneous Expense
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1,000.00
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↑
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12
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31
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Roscoe Chandler, Capital
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5,000.00
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↓
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13
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Roscoe Chandler, Drawing
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5,000.00
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