Chapter 6
Journal entries prepared at the end of the accounting cycle which reduce revenue, expense and drawing accounts to a zero balance are called _____________entries:
closing
Guzman Consulting's adjusted trial balance shows one revenue account, Fees Income. It has a credit balance of $12,000. The journal entry to close this account will include which of the following entries:
debit to Fees Income for $12,000 credit to Income Summary for $12,000
After the revenue and expense accounts of R. Gill Quick Delivery Co. are closed, the Income Summary account has a debit entry of $14,000, and a credit entry of $11,000. The journal entry to close income summary includes which of the following entries:
debit to R. Gill, Capital for $3,000 credit to income summary for $3,000
J. Brody Landscaping's adjusted trial balance shows one revenue account, Fees Income. It has a credit balance of $3,500. The journal entry to close this account will include a debit to which account:
fees income
J. Brody Landscaping's adjusted trial balance shows one revenue account, Fees Income. It has a credit balance of $3,500. The journal entry to close this account will include a debit to which account: Multiple choice question. fees income
fees income
When reviewing a post-closing trial balance, identify which accounts should have a zero balance:
fees income drawing wages expense
The ninth step in the accounting cycle is interpreting the financial statements. Interpreting financial statements includes identifying which of the following questions:
how much does the business owe suppliers? how much is net income? how much cash does the company have?
A special owner's equity account that is used only in the closing process to summarize results of operations (net income or net loss) is called the _____ account.
income summary
After the revenue and expense accounts of V. Nayak Repair Co. are closed, the Income Summary account has a credit balance of $13,000, which is net income for the month. The journal entry to close income summary includes a debit to the ___________ account.
income summary
C. George Delivery Co.'s adjusted trial balance shows two expense accounts: Wages Expense with a debit balance of $12,000 and Advertising Expense with a debit balance of $3,000. The journal entry to close these accounts will include a debit to which account(s):
income summary
A special owner's equity account that is used only in the closing process to summarize the results of operations (net income or net loss) is called the
income summary account
Of the four steps shown below, identify which step in the accounting cycle comes first:
prepare a worksheet
Using the accounting cycle, identify the correct order that financial data flows through the accounting system:
source documents transactions are recorded in the GJ transactions are posted from the general journal to the general ledger financial information is proven, adjusted and summariezed in the workseet financial information is reported on the financial statements
Ito Consulting Company's general ledger shows a beginning credit balance in the H. Ito, Capital account of $1,000. The closing entries resulted in a debit to the account of $500 and a credit to the account of $2,000. The ending balance in the H. Ito's Capital account is:
$2,500 credit
Singh Consulting Company's general ledger shows a beginning credit balance in the T. Singh, Capital account of $600. The closing entries resulted in a debit to the account of $300 and a credit to the account of $500. The ending balance in the T. Singh, Capital account is
800
A company's adjusted trial balance shows one revenue account, Fees Income. It has a credit balance of $4,000. The journal entry to close this account will include a debit to the_____________account in the amount of $4,000; and a credit to the ______________account, in the amount of $4,000.
Blank 1: fees income Blank 2: income summary
R. Sims Cleaning Co.'s adjusted trial balance shows the drawing account has a debit balance of $1,000. The journal entry to close this account will include a debit to the R. Sim's account, and a credit to the R. Sim's account.______________account, and a credit to the R. Sim's __________________ account.
Capital Drawing
Journal entries that transfer the net income or net loss to the owner's equity account are called:
Closing entries
G. Jone's Consulting Company's adjusted trial balance shows the drawing account has a debit balance of $3,000. The journal entry to close this account will include a debit to the _______ account, in the amount of $3,000.
G. Jones, capital
Interpreting financial statements helps understand which of the following:
How much does the business owe suppliers? How much cash does the company have? How much do customers owe the business?
The statement that is prepared to prove the equality of total debits and total credits, and is the last step in the end-of-period routine, is called the
Postclosing
There are 9 steps in the accounting cycle. Place the steps in the correct order:
analyse post the journal prepare a work sheet record adjusting and closing entries prepare a postclosinng trial balance interpret the financial information
The post closing trial balance is prepared to verify all the following, except:
asset and liability accounts have zero balances
A. Li Consulting Co.'s adjusted trial balance shows the drawing account has a debit balance of $2,000. The journal entry to close this account will include which of the following entries:
credit to A. Li, drawing debit to A. Li, capital
After the revenue and expense accounts of P. Hernandez Consulting Co. are closed, the Income Summary account has a debit entry of $9,000, and a credit entry of $11,000. The journal entry to close income summary includes which of the following entries:
credit to P. Hernandez, Capital for $2,000 debit to income summary for $2,000
A company's adjusted trial balance shows two expense accounts: Wages Expense with a debit balance of $2,000 and Rent Expense with a debit balance of $1,000. The journal entry to close these accounts will include which of the following:
credit to rent expense credit to wages expense debit to income summary
The statement that is prepared to prove the equality of total debits and total credits, and is the last step in the end-of-period routine, is called the
postclosing
The eighth step in the accounting cycle is to prepare the postclosing trial balance. The postclosing trial balance is prepared to:
prove the equality of total debits and credits confirm revenue, expense, and drawing accounts have zero balances
After analyzing source documents, the next step is to:
record transactions in the general journal
Identify which of the following types of accounts are closed to the income summary account:
revenue expense
There are four steps in the closing process. Place the steps in the correct order:
transfer the balance of the revenue transfer the expense transfer the balance of the income summary transfer the balance of the drawing
Identify the correct steps to the closing process:
Transfer the expense account balances to the Income Summary account Transfer the balance of the revenue account to the Income Summary account Transfer the balance of the Income Summary account to the owner's capital account