Closing entries: Closing entries are recorded in order to close the temporary accounts such as incomes and expenses by transferring them to the permanent accounts such as retained earnings . It is passed at the end of the accounting period, to transfer the final balance. Post-Closing Trial Balance : After passing all the journal entries and the closing entries of the permanent accounts and then further posting them to each of the respective accounts, a post-closing trial balance is prepared which consists of a list of all the permanent accounts. A post-closing trial balance serves as an evidence to prove that the balance of the permanent accounts is equal. Current Ratio : Current ratio is used to determine the relationship between current assets and current liabilities. The ideal current ratio is 2:1 Formula: Current ratio = Current assets Current liabilities To Prepare: The closing entries for Company MBA at December 31, 2018.

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Answer 1

Question

Chapter 4, Problem 4.25E

1.

To determine

Closing entries: Closing entries are recorded in order to close the temporary accounts such as incomes and expenses by transferring them to the permanent accounts such as retained earnings. It is passed at the end of the accounting period, to transfer the final balance.

Post-Closing Trial Balance: After passing all the journal entries and the closing entries of the permanent accounts and then further posting them to each of the respective accounts, a post-closing trial balance is prepared which consists of a list of all the permanent accounts. A post-closing trial balance serves as an evidence to prove that the balance of the permanent accounts is equal.

Current Ratio: Current ratio is used to determine the relationship between current assets and current liabilities. The ideal current ratio is 2:1

Formula:

Current ratio=Current assetsCurrent liabilities

To Prepare: The closing entries for Company MBA at December 31, 2018.

2.

To determine

To Prepare: A post-closing trial balance.

3.

To determine

To calculate: Current ratio for Company MBA.

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This Company uses standard costing. Variable overhead is applied at $8 per direct labor hour. Data for the month of September follows: Actual overhead variable costs Standard hours allowed for actual production Actual labor hours worked $ 78,000 10,000 9,800 How much is the controllable overhead spending variance? a. $2,000 favorable b. $400 favorable c. $400 unfavorable d. $2,000 unfavorable

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Answer 2

Question

Chapter 4, Problem 4.25E

1.

To determine

Closing entries: Closing entries are recorded in order to close the temporary accounts such as incomes and expenses by transferring them to the permanent accounts such as retained earnings. It is passed at the end of the accounting period, to transfer the final balance.

Post-Closing Trial Balance: After passing all the journal entries and the closing entries of the permanent accounts and then further posting them to each of the respective accounts, a post-closing trial balance is prepared which consists of a list of all the permanent accounts. A post-closing trial balance serves as an evidence to prove that the balance of the permanent accounts is equal.

Current Ratio: Current ratio is used to determine the relationship between current assets and current liabilities. The ideal current ratio is 2:1

Formula:

Current ratio=Current assetsCurrent liabilities

To Prepare: The closing entries for Company MBA at December 31, 2018.

2.

To determine

To Prepare: A post-closing trial balance.

3.

To determine

To calculate: Current ratio for Company MBA.

Expert Solution & Answer

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Answer 3

Question

Chapter 4, Problem 4.25E

1.

To determine

Closing entries: Closing entries are recorded in order to close the temporary accounts such as incomes and expenses by transferring them to the permanent accounts such as retained earnings. It is passed at the end of the accounting period, to transfer the final balance.

Post-Closing Trial Balance: After passing all the journal entries and the closing entries of the permanent accounts and then further posting them to each of the respective accounts, a post-closing trial balance is prepared which consists of a list of all the permanent accounts. A post-closing trial balance serves as an evidence to prove that the balance of the permanent accounts is equal.

Current Ratio: Current ratio is used to determine the relationship between current assets and current liabilities. The ideal current ratio is 2:1

Formula:

Current ratio=Current assetsCurrent liabilities

To Prepare: The closing entries for Company MBA at December 31, 2018.

2.

To determine

To Prepare: A post-closing trial balance.

3.

To determine

To calculate: Current ratio for Company MBA.

Expert Solution & Answer

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Answer 4

Question

Chapter 4, Problem 4.25E

1.

To determine

Closing entries: Closing entries are recorded in order to close the temporary accounts such as incomes and expenses by transferring them to the permanent accounts such as retained earnings. It is passed at the end of the accounting period, to transfer the final balance.

Post-Closing Trial Balance: After passing all the journal entries and the closing entries of the permanent accounts and then further posting them to each of the respective accounts, a post-closing trial balance is prepared which consists of a list of all the permanent accounts. A post-closing trial balance serves as an evidence to prove that the balance of the permanent accounts is equal.

Current Ratio: Current ratio is used to determine the relationship between current assets and current liabilities. The ideal current ratio is 2:1

Formula:

Current ratio=Current assetsCurrent liabilities

To Prepare: The closing entries for Company MBA at December 31, 2018.

2.

To determine

To Prepare: A post-closing trial balance.

3.

To determine

To calculate: Current ratio for Company MBA.

Expert Solution & Answer

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Answer 5

Chapter 4, Problem 4.25E

1.

To determine

Closing entries: Closing entries are recorded in order to close the temporary accounts such as incomes and expenses by transferring them to the permanent accounts such as retained earnings. It is passed at the end of the accounting period, to transfer the final balance.

Post-Closing Trial Balance: After passing all the journal entries and the closing entries of the permanent accounts and then further posting them to each of the respective accounts, a post-closing trial balance is prepared which consists of a list of all the permanent accounts. A post-closing trial balance serves as an evidence to prove that the balance of the permanent accounts is equal.

Current Ratio: Current ratio is used to determine the relationship between current assets and current liabilities. The ideal current ratio is 2:1

Formula:

Current ratio=Current assetsCurrent liabilities

To Prepare: The closing entries for Company MBA at December 31, 2018.

2.

To determine

To Prepare: A post-closing trial balance.

3.

To determine

To calculate: Current ratio for Company MBA.

Answer 6

Chapter 4, Problem 4.25E

1.

To determine

Closing entries: Closing entries are recorded in order to close the temporary accounts such as incomes and expenses by transferring them to the permanent accounts such as retained earnings. It is passed at the end of the accounting period, to transfer the final balance.

Post-Closing Trial Balance: After passing all the journal entries and the closing entries of the permanent accounts and then further posting them to each of the respective accounts, a post-closing trial balance is prepared which consists of a list of all the permanent accounts. A post-closing trial balance serves as an evidence to prove that the balance of the permanent accounts is equal.

Current Ratio: Current ratio is used to determine the relationship between current assets and current liabilities. The ideal current ratio is 2:1

Formula:

Current ratio=Current assetsCurrent liabilities

To Prepare: The closing entries for Company MBA at December 31, 2018.

Answer 7

Chapter 4, Problem 4.25E

1.

To determine

Closing entries: Closing entries are recorded in order to close the temporary accounts such as incomes and expenses by transferring them to the permanent accounts such as retained earnings. It is passed at the end of the accounting period, to transfer the final balance.

Post-Closing Trial Balance: After passing all the journal entries and the closing entries of the permanent accounts and then further posting them to each of the respective accounts, a post-closing trial balance is prepared which consists of a list of all the permanent accounts. A post-closing trial balance serves as an evidence to prove that the balance of the permanent accounts is equal.

Current Ratio: Current ratio is used to determine the relationship between current assets and current liabilities. The ideal current ratio is 2:1

Formula:

Current ratio=Current assetsCurrent liabilities

To Prepare: The closing entries for Company MBA at December 31, 2018.

Answer 8

2.

To determine

To Prepare: A post-closing trial balance.

Answer 9

2.

To determine

To Prepare: A post-closing trial balance.

Answer 10

3.

To determine

To calculate: Current ratio for Company MBA.

Answer 11

3.

To determine

To calculate: Current ratio for Company MBA.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 4 - Assets are listed on the balance sheet in the...Ch. 4 - Which of the following accounts would be included...Ch. 4 - Which situation indicates a net loss within the...Ch. 4 - Which of the following accounts is not closed? a....Ch. 4 - What do closing entries accomplish? a. Zero out...Ch. 4 - Which of the following is not a closing entry?Ch. 4 - Which of the following accounts may appear on a...Ch. 4 - Which of the following steps of the accounting...Ch. 4 - Clean Water Softener Systems has Cash of 600,...Ch. 4 - Which of the following statements concerning...

To Prepare: A post-closing trial balance.

To calculate: Current ratio for Company MBA.

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Chapter 4 Solutions