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The following information was drawn from the accounting records of Wyckoff Company as of December 31, Year 2, before the temporary accounts had been closed. The Cash balance was $3,300, and Notes Payable amounted to $22,000. The company had revenues of $3,920 and expenses of $2,860. The company's Land account had an $4,000 balance. Dividends amounted to $750. There was $1,000 of common stock issued. Required a. Identify which accounts would be classified as permanent and which accounts would be classified as temporary. Account Classification Cash Permanent Notes payable Permanent Temporary Temporary Permanent Revenues Expenses Land Temporary Permanent Permanent Dividends Common stock Retained earnings

The following information was drawn from the accounting records of Wyckoff Company as of December 31, Year 2, before the temporary accounts had been closed. The Cash balance was $3,300, and Notes Payable amounted to $22,000. The company had revenues of $3,920 and expenses of $2,860. The company's Land account had an $4,000 balance. Dividends amounted to $750. There was $1,000 of common stock issued. Required a. Identify which accounts would be classified as permanent and which accounts would be classified as temporary. Account Classification Cash Permanent Notes payable Permanent Temporary Temporary Permanent Revenues Expenses Land Temporary Permanent Permanent Dividends Common stock Retained earnings

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please answer b and c
b. Assuming that Wyckoff's beginning balance (as of January 1, Year 2) in the Retained Earnings account was $3,100, determine its balance after the temporary accounts were closed at the end of Year 2. Ending retained earnings c. What amount of net income would Wyckoff Company report on its Year 2 income statement? Net income ( Prev 7 of 8 Next >
Transcribed Image Text:b. Assuming that Wyckoff's beginning balance (as of January 1, Year 2) in the Retained Earnings account was $3,100, determine its balance after the temporary accounts were closed at the end of Year 2. Ending retained earnings c. What amount of net income would Wyckoff Company report on its Year 2 income statement? Net income ( Prev 7 of 8 Next >
The following information was drawn from the accounting records of Wyckoff Company as of December 31, Year 2, before the temporary accounts had been closed. The Cash balance was $3,300, and Notes Payable amounted to $22,000. The company had revenues of $3,920 and expenses of $2,860. The company's Land account had an $4,000 balance. Dividends amounted to $750. There was $1,000 of common stock issued. Required a. Identify which accounts would be classified as permanent and which accounts would be classified as temporary. Account Classification Cash Permanent Notes payable Permanent Revenues Temporary Temporary Permanent Expenses Land Dividends Temporary Common stock Permanent Retained earnings Permanent
Transcribed Image Text:The following information was drawn from the accounting records of Wyckoff Company as of December 31, Year 2, before the temporary accounts had been closed. The Cash balance was $3,300, and Notes Payable amounted to $22,000. The company had revenues of $3,920 and expenses of $2,860. The company's Land account had an $4,000 balance. Dividends amounted to $750. There was $1,000 of common stock issued. Required a. Identify which accounts would be classified as permanent and which accounts would be classified as temporary. Account Classification Cash Permanent Notes payable Permanent Revenues Temporary Temporary Permanent Expenses Land Dividends Temporary Common stock Permanent Retained earnings Permanent
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