Principles of Financial Accounting.
22nd Edition
ISBN: 9780077632892
Author: John J. Wild
Publisher: McGraw Hill
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Textbook Question
Chapter 4, Problem 1MCQ
G. Venda, owner of Venda Services, withdrew $25,000 from the business during the current year. The entry to close the withdrawals account at the end of the year is:
Expert Solution & Answer
To determine
The entry to close the withdrawals account at the end of the year.
Answer to Problem 1MCQ
Option (e) is the correct answer.
Explanation of Solution
Person G is the owner of Company V, who has withdrawn $25,000 from the business during the present year. As it is given that the amount is withdrawn, it must be credited and the capital amount should be debited. Hence, the following entry shows that correct answer.
Therefore, Option e is the correct answer.
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Students have asked these similar questions
Judy Smith owed the Flower Company $3,200 on account by February 25. After several attempts to the collect the money that was owed, Flower Company wrote off Judy's account as uncollectible on August 31. On December 15 Flower Company received a check from Judy Smith for the full $3,200 that she had owed the company. The company's fiscal year ended on December 31. Which of the following journal entries is recorded to reinstate the account when using the direct write-off method?
a.Debit Accounts Receivable $3,200 and credit Uncollectible Accounts Recovered $3,200
b.Debit Bad Debt Expense $3,200 and credit Accounts Receivable $3,200
c.Debit Accounts Receivable $3,200 and credit Bad Debt Expense $3,200
d.Debit Allowance for Doubtful Accounts $3,200 and credit Bad Debt Expense $3,200
Byrde Industries had the following transactions occur:
Nov. 1: Accepted a $81,000, 75 day, 5% note from Ruth Langmore in granting a time
extension on her past-due account receivable.
Dec. 31: Adjusted the year-end accounts for the accrued interest earned on the note.
Next year: Ruth Langmore honored the note on its due date.
Use this information to answer the following questions. Assume 360 days in a calendar year.
Round all answers to the nearest dollar.
1. Provide the journal entry Byrde records on November 1. If no entry is required type No
Entry.
2. Provide the journal entry Byrde records on December 31. If no entry is required type No
Entry.
3. Provide the date and the journal entry Byrde records on the date the note is honored. If
no entry is required type No Entry.
Dina Kader withdrew a total of $35,000 from her business during the current year. The entry needed to close the withdrawals account is:
Group of answer choices
Debit Dina Kader, Capital and credit Dina Kader, Withdrawals for $35,000.
Debit Dina Kader, Withdrawals and credit Cash for $35,000.
Debit Income Summary and credit Dina Kader, Withdrawals for $35,000.
Debit Income Summary and credit Cash for $35,000.
Chapter 4 Solutions
Principles of Financial Accounting.
Ch. 4 - G. Venda, owner of Venda Services, withdrew 25,000...Ch. 4 - The following information is available for the R....Ch. 4 - Which of the following errors would cause the...Ch. 4 - The temporary account used only in the closing...Ch. 4 - Prob. 5MCQCh. 4 - Prob. 1DQCh. 4 - What accounts are affected by closing entries?...Ch. 4 - What two purposes are accomplished by recording...Ch. 4 - Prob. 4DQCh. 4 - Prob. 5DQ
Ch. 4 - Prob. 6DQCh. 4 - Prob. 7DQCh. 4 - Prob. 8DQCh. 4 - Prob. 9DQCh. 4 - Prob. 10DQCh. 4 - What are the characteristics of plant assets?Ch. 4 - Prob. 12DQCh. 4 - Prob. 13DQCh. 4 - Prob. 14DQCh. 4 - Prob. 15DQCh. 4 - Prob. 16DQCh. 4 - Prob. 17DQCh. 4 - Prob. 1QSCh. 4 - Prob. 2QSCh. 4 - Prob. 3QSCh. 4 - Prob. 4QSCh. 4 - Prob. 5QSCh. 4 - The ledger of Mai Company includes the following...Ch. 4 - Prob. 7QSCh. 4 - Prob. 8QSCh. 4 - Prob. 9QSCh. 4 - Prob. 10QSCh. 4 - Prob. 11QSCh. 4 - Prob. 12QSCh. 4 - These 16 accounts are from the Adjusted Trial...Ch. 4 - The Adjusted Trial Balance columns of a 10-column...Ch. 4 - Use the following information from the Adjustments...Ch. 4 - Prob. 4ECh. 4 - Capri Company began the current period with a...Ch. 4 - Prob. 6ECh. 4 - Prob. 7ECh. 4 - Use the May 31 fiscal year-end information from...Ch. 4 - Prob. 9ECh. 4 - The adjusted trial balance for Salon Marketing Co....Ch. 4 - Prob. 11ECh. 4 - Prob. 12ECh. 4 - Use the following adjusted year-end trial balance...Ch. 4 - Prob. 14ECh. 4 - Prob. 15ECh. 4 - Hawk Company records prepaid assets and unearned...Ch. 4 - Prob. 17ECh. 4 - Prob. 1APCh. 4 - Prob. 2APCh. 4 - Prob. 3APCh. 4 - Prob. 4APCh. 4 - Problem 4-5A The adjusted trial balance of Karise...Ch. 4 - Prob. 6APCh. 4 - Prob. 1BPCh. 4 - Problem 4-2B The following unadjusted trial...Ch. 4 - Prob. 3BPCh. 4 - Prob. 4BPCh. 4 - Problem 4-5B Santo Company’s adjusted trial...Ch. 4 - Prob. 6BPCh. 4 - Prob. 4SPCh. 4 - BTN 4-1 Refer to Apple's financial statements in...Ch. 4 - Prob. 2BTNCh. 4 - Prob. 3BTNCh. 4 - One of your classmates states that a companys...Ch. 4 - Prob. 7BTNCh. 4 - Prob. 9BTN
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