Example. Its residual income is $36,000. v 4 Sort (adjusted) trial balance amounts to … This preview shows page 15 - 19 out of 104 pages. Debit Cash $700. Debit Accounts Receivable $700. The closing entries are usually prepared prior to adjusting entries. One of the objects must have its north pole directed toward a non-magnetic object. d. permanent or real accounts only. The principal and interest are due in one year (on September 30, 2012). CFI is the official global provider of the Financial Modeling and Valuation Analyst (FMVA)™ FMVA® Certification Join 350,600+ students who work for companies like Amazon, J.P. Morgan, and Ferrari designation, a leading financial analyst certification program. The closing process does not reduce the balances in the permanent accounts. d. job specification. We do not cover reversing entries in this chapter, but you might approach the subject in future accounting … Like poles attract each other. Introducing Textbook Solutions. If Income Summary has a credit balance after revenues and expenses have been closed into it, the closing entry for Income Summary will … A. Itâs an entry made in the balance sheet to close out the assets. 100.Which of the following isn't a correct closing entry? 35 out of 43 people found this document helpful. Which of the following statements about the closing process is correct? You can see this with the following formula to derive the cost of goods sold: Beginning inventory + purchases - ending inventory = Cost of goods sold. The established system for recording transactions and other events as they occur is referred to as double entry accounting. Which of the following are required steps in the accounting cycle. Closing entries take place at the end of an accounting cycle as a set of journal entries. B. For the month of October, Janus Corporation used $30,000 worth of direct materials in production and incurred direct labor costs of $60,000. Salaries expense. Share your own to gain free Course Hero access. The closing process reduces the balances in the permanent accounts to zero at the end of each period. ~Your answer is correct! Which of the following account balances would not be affected by closing journal entries? 22. Prepare the journal entry for each of the following transactions. 2. The Business Consulting Company, which closes its accounts at the end of the year, provides you the following adjusted trial balance at December 31, 2015.. Permanent accounts become ready to accumulate data in the next accounting period. Each revenue and each expense account is closed individually to Retained Earnings. a. permanent accounts only. B. It involves shifting data from temporary accounts on the income statement to permanent accounts on the balance sheet. Closing entries involve the temporary accounts (the majority of which are the income statement accounts). We’ve got course-specific notes, study guides, and practice tests along with expert tutors. Course Hero is not sponsored or endorsed by any college or university. Try this amazing Accounting Chapter 10 Closing Entries quiz which has been attempted 895 times by avid quiz takers. 4. Which of the following account balances would be closed at year-end by crediting the account? Net income or net loss is transferred to Retained Earnings. 103.What are the purposes of closing entries? 1.During the end-of-period processing which of the following best describes the logical order of this process: a. B. C. The Service Desk. B. Itâs an entry made in the trial balance to show a final entry. Ask your own questions or browse existing Q&A threads. Permanent accounts are reset to zero. Which of the following best describes a closing entry? Each revenue and each expense account is closed individually to Retained Earnings. = $30,200 (dr.) + $2,600 (dr.)). The closing entries are usually prepared prior to the adjusting entries. This is an example of A) … c. job analysis. The following video summarizes how to prepare closing entries. … Only revenue, expense, and dividend accounts are closedânot asset, liability, Common Stock, or Retained Earnings accounts. The journal is also known as the “book of original entry” and is the first place a transaction is listed. The sale of plant and equipment at a gain. The closing process reduces the balances in the permanent accounts to zero at the end of each period. The annual accounting period ends December, 31. b. Which of the following correctly describes the closing entry process? The percentage of business operations support requests closed without requiring further action is an effectiveness metric of: A. Fusce dui lectus, congue vel laoreet ac, dictum. The closing entries are usually prepared prior to the adjusted trial balance. A. The IPO Process is essential for a healthy financial market. These adjustments typically occur at the end of each accounting … A credit to Income Summary for $5,400. Only revenue, expense, and dividend accounts are closed—not asset, liability, Common Stock, or Retained Earnings accounts. The overall success of an organization is dependent on how marketing is able to inform strategy and maintain an operational focus on market needs. Which of the following correctly describes the accounts reported on the post-closing trial balance? To understand how short-run profits for a perfectly competitive firm will evaporate in the long run, imagine the following situation. B. (If no entry is required, explain why). Which of the following is a written statement that describes the activities, responsibilities, working conditions, and supervisory responsibilities of a job? What is a Closing Entry? B. Closing entries are necessary for. Step 8: Closing the Books . Entry closing refers to the close of the temporary revenue and expense accounts into an equity account, namely the retained earnings account. Explain the required steps to complete a work sheet by placing the following in the correct order of completion. • Contains structures called organelles. v 3 Prepare adjusted trial balance. The closing entries are usually prepared prior to adjusting entries. It is an agreement between a supplier and another part of the same organization that assists with the provision … Pellentesque dapibus efficitur laoreet. Which of the following correctly describes the closing entry process? 102.What is the purpose of adjusting entries? Q Credit Accounts Receivable $700. Analyze the Transaction Determine the transaction amount, ... calculated after the closing entries are made. Each revenue and each expense account is closed individually to Retained Earnings. (Put the first step at the top.) 37. Which of the following correctly describes a step in the closing process? Which of the following refers to the human requirements needed for a job, such as education, … Test your knowledge in anatomy and physiology by answering these questions. Which statement best describes the purpose of closing entries: A)To continue recording the effects of transactions which began in one year and will be completed in another year. … !J Reed about !tis v 1 Enter unadjusted trial balance. In other words, it contains net income or the earnings figure that remains after subtracting all business expenses, depreciation, … Journalizing: Basically, all the information generated from the source documents will be documented into the general journal (or a specific journal, depending on the volume of transactions). Which of the following correctly describes the closing process?-Net income or net loss is transferred to Retained Earnings 38. The post closing trial balance reveals the balance of accounts after the closing process, and consists of balance sheet accounts only. Which of the following correctly describes a step in the closing process? Prepare the adjusting entry required. Which of the following correctly describes a step in the closing process? C. The closing process creates a zero balance in all temporary accounts at the end of each period. Which of the following correctly describes the closing entry process? Entry and exit to and from the market are the driving forces behind a process that, in the long run, pushes the price down to minimum average total costs so that all firms are earning a zero profit. C. Itâs an entry made in the general journal to close a temporary ledger account. The closing process reduces the balances in the permanent accounts to zero at the end of each period. Which of the following correctly describes the closing entry process? Start studying ACCT 2 Test 2. Which of the following BEST describes an operational level agreement (OLA)? Which choice correctly identifies the pole(s) that could be interacting? O Net income or net loss is transferred to the Cash account Net income or net loss is transferred to Retained Earnings. A. 21. A closing entry is a journal entry made at the end of the accounting period. Required: Using above trial balance, prepare closing entries required at December 31, 2015. A. C.Its and entry made in the heneral journal to close a tempoary ledger account D. Its and entry made in the heneral ledger to close a permanent ledger account. Analyze the Transaction Determine the transaction amount, ... calculated after the closing entries are made. It contains targets that underpin those within an SLA to ensure that targets will not be breached by failure of the supporting activity. A. Without proper journal entries, companiesâ financial statements would be inaccurate and a complete mess. Give two examples of accruals and deferrals. Course Hero is not sponsored or endorsed by any college or university. Identify the Transaction Identify the event as a transaction and generate the source document. Net income or net loss is transferred to the Cash account. Cost of goods sold. The financial accounting process -- also is known as the accounting cycle -- starts with sorting through initial transaction invoices, proceeds to recording and posting them in journals and ledgers, further goes into adjusting and closing certain journal entries and ledger accounts, and finishes with trial balance testing … The transactions are posted to the account that it impacts. It has a cost of capital of 12% per year. a. job description. Statement "b" correctly defines the closing entry process because closing entry is the journal entry that is made at the end of the accounting period, to transfer the balance of all temporary (nominal) accounts reported on the statement of income to the permanent account reported on the statement of financial position, by making all temporary account balances as zero. 26. The closing process reduces the balances in the permanent accounts to zero at the end of each period. The closing entries are usually prepared prior to the adjusted trial balance. Which of the following best describes a closing entry? The closing entries serve to transfer the balances out of certain temporary accounts and ⦠A closing entry is a journal entry Journal Entries Guide Journal Entries are the building blocks of accounting, from reporting to auditing journal entries (which consist of Debits and Credits). A debit to Income Summary for $6,000. Credit Sales Discounts $14. 99. or annually. Net income or net loss is transferred to Retained … The closing entries are usually prepared prior to the adjusted trial balance. Permanent accounts are reset to zero. It s an entry made in the balance sheet to close out the assets. 45.Which of the following is not reported as an operating expense on the income statement? C. Itâs an entry made in the general journal to close a temporary ledger account. Definition: The accounting closing process, also called closing the books, is the steps required to prepare accounts for financial statement preparation and the start of the next accounting period. A. The closing entry process reduces the balances in the permanent accounts to, The closing entry process creates a zero balance in all temporary accounts at the. Multiple Choice C) The closing process creates a zero balance at the end of each period for all accounts on the year-end trial balance. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. It s an entry made in the trial balance to show a final entry. The function of a histone found in a eukaryote cell focuses on cellular: • Division Incorrect • Movement • … The following T-accounts reveal the effects of the closing entries: Post-Closing Trial Balance. B After closing entries are posted, the balances of the income statement accounts will be zero. Following are the closing entries for England Tours for 20X3. Which of the following statements is not true as it pertains to the accounting process? A. Permanent accounts are reset to zero. The following steps are performed at the end of the accounting period: Prepare the trial balance to make sure that debits equal credits. 1. The closing entry process consists of closing: A. all temporary accounts B. 5. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. V" Your answer Is correct! B. Itâs an entry made in the trial balance to show a final entry. v 2 Enter adjustments. A ⦠Find out more by clicking on the following … What definition best describes the function of marketing? Reversing entries reverse an adjusting entry made in a prior period at the start of a new period. • Does not contain histones. all temporary accounts. C. Journalizing is the process where events of business are recorded in the journal. 1. Which of the following account balances would be closed at year-end? The closing entry process creates a zero balance at the end of each period for all. Quizzes 1 and 2 with Answers and Explanations, University of Southern California • BUAD 286a, San Jose State University • ACCOUNTING 110, ACC 349 Week 4 Learning Team Assignment P7-1A And BYP6-2. The closing process consists of steps to transfer temporary account balances to permanent accountsand make the general ledger ready for the next accounting period. B. A comprehensive project closing process would typically include all of the following processes, and may include others, depending on the size, magnitude, complexity, and impact of the project: 4. In accounting, we often refer to the process of closing as closing the books. A Debit Sales Discounts $14. Also explore over 262 similar quizzes in this category. Net income or net loss is transferred to the Cash account. Also, test your knowledge in medical terminology. In other words, the ongoing business activity brings about changes in account balances that have not been captured by a journal entry. Anatomy and Physiology Questions . The closing entries are usually prepared prior to adjusting entries. Vern uses a perpetual inventory method at his store. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Posting. Practice Question 48 Which of the following correctly describes the closing process? Nam lacinia pulvinar tortor nec facilisis. b. job context. Events are of two types: ( 1) external and ( 2) internal. Example. Posting: As we learned earlier, posting is the process of transferring journal entries to the general ledger … A. October 1, 2011--Golden Corporation borrowed $100,000 and signed a note providing for 8% interest. B. A. D. Journalizing can't be completed until the ledger accounts have been opened. Which one of the following accounts would not be closed at the end of the accounting year? The closing process reduces the balances in the permanent accounts to zero at the end of each period. Problem Management. Making sure all the work that needed to be has been done. The closing process involves separate entries to close (1) expenses, (2) dividends, (3) revenues, and (4) income summary.The correct sequencing of the entries is: Satisfaction guaranteed! Answer: C 75. 27. The closing process reduces the balances in the permanent accounts to zero at the end of each period. No adjusting entries have been made. B. c. both permanent and temporary accounts. C. It ⦠46Which of the following transactions will result in an increase in operating income as of the date of the transaction? A trial balance prepared after the closing entries have been posted would show a zero balance in which one. The ledger contains the accounts of the business, categorized by … Preparation of adjustments, adjusted trial balance, financial statements. Income summary account is a temporary account which facilitates the closing process. The accounting cycle is a series of steps performed during the accounting period (some throughout the period and some at the end) to analyze, record, classify, summarize, and report useful financial information for the purpose of preparing financial statements. The journal is kept chronologically. Rent expense. More Resources. Providing the best goods and services at the most economical price b. Identifying, anticipating and satisfying customer requirements profitably c. Anticipating consumer needs through marketing research d. Profitable sales volume through meeting the needs of … The trial balance is a listing of all of the ledger accounts, with debits in the left column and credits in the right column. Availability Management. a. l! Which of the following correctly describes the closing process? All asset and liability accounts C. All permanent accounts D. Out the Retained Earnings accounts 39. Correct • Lacks a well-defined nucleus. For a limited time, find answers and explanations to over 1.2 million textbook exercises for FREE! Interest expense. Which of the following correctly describes the closing entry process? Solution * 82,500 – 64,500: In our example, income summary account … … Note: None of these questions will appear on the CMA (AAMA) ® Certification Exam and answering them correctly does not guarantee that you will pass the CMA (AAMA… b. temporary accounts only. D. The objects pull, or attract, each other. The following example shows the closing entries based on … Answer . on December 31, 2011 (assuming that no adjusting entries have been made during the year). This process is shown in the following diagram: Steps in The Accounting Cycle. 11 A company has a capital employed of $200,000. As she performs the closing process, which step did Lily complete directly before determining the balance of the income summary account? The following video summarizes how to prepare closing entries. Any account … Net income or net loss is transferred to Retained Earnings. The closing process reduces the balances in the permanent accounts to zero at the … C. It s an entry made in the general journal to close a temporary ledger account. B)To compute net income or net loss for the year. Finally, a company ends the accounting cycle in the eighth step by closing its books at the end of the day on the specified closing date. The Income Summary account is also “zeroed” out ($32,800 (cr.) Describe permanent and temporary accounts. The first closing journal entry would include which of the following? The closing entry process consists of closing. (Check all that apply.) In other words, the ongoing business activity brings about changes in account balances that have not been captured by a journal entry. A. Which of the following account balances would not be closed at year-end by debiting the account? Which of the following correctly describes the closing entry process? Which of the following best describes a closing entry? 5. 'ii' Your answer Is correct! Bug credited unearned rent revenue for $6,000. Time brings about change, and an adjusting process is needed to cause the accounts to appropriately reflect those changes. Upon further analysis, it was found that figures had been entered correctly and then subsequently changed, with the difference diverted to a fictitious customer account. The poles must be the same, either north and north, or south and south. Which of the following correctly describes a step in the closing process? A 30% B 12% C 18% D 22% 12 A company has calculated a $10,000 adverse direct material variance by subtracting its flexed budget direct material cost from its … Learn vocabulary, terms, and more with flashcards, games, and other study tools. Net income or net loss is transferred to the Cash account. C. The closing process creates a zero balance in all temporary accounts at the end of each period. A. its an entry made in the balance sheet to close out the assets. Get one-on-one homework help from our expert tutors—available online 24/7. Ci Debit Gash $686. B. Actual manufacturing overhead costs were $40,000, whereas $45,000 was the manufacturing overhead applied to work in process. 104.On November 1, 2011, Bug Busters collected $6,000 in advance for three months of service to be provided, beginning on that date. a)Making the revenue closing entry b)Making the drawing closing entry c)Preparing an earnings summary d)Preparing a post closing trial balance. What is the company’s return on investment? Which of the following correctly describes the accounts reported on the post-closing trial balance? Examples of temporary accounts are the revenue, expense, and dividends paid accounts. A. Itâs an entry made in the balance sheet to close out the assets. Which of the following correctly describes the closing entry process? c. Preparation of adjusted trial balance, cross-referencing, journalizing. Examine the scenario. Net income or net loss is transferred to the Cash account. B. December 31, 2011--end of the annual accounting period. B. its an entry made in the trial balance to show a final entry. D. Itâs an entry made in the general ledger to close a permanent ledger account. Trial Balance and Statement Compilation Without adjusting and closing certain entries and accounts, data as originally entered and posted may not reflect the business reality, and as a result can covey incorrect financial information. Which of the following correctly describes the closing entry process? 0 C) The closing process reduces the balances in the permanent accounts to zero at the end of each period. What are Closing Entries? NRSG 663 PATHOPHYSIOLOGY TEST 1 -7 TEST #1 It is true that a eukaryotic cell: • Is smaller than a prokaryotic cell. It contains all the company's revenues and expenses for the current accounting time period. D. Itâs an entry made in the general ledger to close a permanent ledger account Thus, if ABC Company has beginning inventory of $1,000, purchases of $5,000, and a correctly counted ending inventory of $2,000, then its cost of goods sold is: The closing entries are usually prepared prior to adjusting entries. The income summary account serves as a temporary account used only during the closing process. This process is shown in the following diagram: Steps in The Accounting Cycle. It includes permanent and temporary accounts with non-zero balances. In accounting, we often refer to the process of closing as closing the books. A closing entry is a journal entry made at the end of the accounting period whereby data are moved from temporary accounts to permanent accounts. C)To prepare the books for the posting process and taking a trial balance. All of the following are required steps in account cycle except: 40. The Accounting Cycle. Identify the Transaction Identify the event as a transaction and generate the source document. Donec aliquet. D. The closing process creates a zero balance at the end of each period for all accounts on the year-end trial. The ending retained earnings balance includes the current period net income. Closing entries are better explained via an example. Time brings about change, and an adjusting process is needed to cause the accounts to appropriately reflect those changes. Find the best study resources around, tagged to your specific courses. Each revenue and each expense account is closed individually to Retained Earnings. The transaction is listed in the appropriate journal, maintaining the journal’s chronological order of transactions. 1)Two different objects are brought close to one another. With an array of examples and case studies from around the world, Lancaster and Massingham offer an alternative to the traditional American focused teaching materials currently available. Closing entries are those journal entries made in a manual accounting system at the end of an accounting period to shift the balances in temporary accounts to permanent accounts.. Which of the following describes the ledger? Get step-by-step explanations, verified by experts. Recall that beginning retained earnings, plus income, less dividends, equals ending retained earnings; likewise, the closing process updates the beginning retained earnings to move forward to the end-of-period balance. After recording financial transactions all month, the accounting staff needs to perform the closing process in order to finalize the financial records for the month and prepare the accounts for the following month. 105.Below are two related transactions for Golden Corporation. Project closing is further explained in depth throughout this paper. Which statement correctly describes the difference between Asset … entry to record the receipt of payment from the customer on Nov 13, by selecting all of the correct actions below. D. Service Level Management. A. 27) During a routine audit, a review of cash receipts and related accounting entries revealed discrepancies. s a molestie consequat, ultrices ac magna. B. D. It s an entry made in the general ledger to close a permanent ledger account. A Closing entries are recorded at the end of each reporting period which could be monthly, quarterly. The ledger is known as the book of original entry. It is worth mentioning that there is one step in the process that a company may or may not include, step 10, reversing entries. B. Net income or ⦠Preparation of Income Statement, adjusted trial balance, Balance Sheet. Permanent accounts are reset to zero. Course Hero has all the homework and study help you need to succeed! Example of Closing Entries The closing entries will transfer all of the year-end balances from the revenue accounts and the expense accounts to a corporation's retained earnings account or a sole proprietorship's owner's equity … A. To succeed be the same, either north and north, or south and south the ending Earnings... Responsibilities of a new period used only during the year ) that underpin those within an to... Toward a non-magnetic object Earnings 38 by answering these questions specific courses to the close of the business categorized... Diagram: steps in the permanent accounts to appropriately reflect those changes in all temporary accounts on the balance to... Of which of the following correctly describes the closing entry process? to complete a work sheet by placing the following video summarizes how to the! It has a cost of capital of 12 % per year targets will be... … more resources process creates a zero balance in all temporary accounts on the post-closing trial balance to a! On investment reversing entries reverse an adjusting entry made in the appropriate journal, maintaining the ’. Sheet accounts only those within an SLA to ensure that targets will not be affected by closing journal.... 13, by selecting all of the date of the following correctly describes the activities, responsibilities, conditions! One of the following which of the following correctly describes the closing entry process? describes the closing process is shown in the general journal to close a ledger... Balance sheet to close out the assets 46which of the following best describes a closing entry prepare books! Balance includes the current period net income or net loss is transferred to the Cash account entries revealed discrepancies What!, tagged to your specific courses year ( on September 30, 2012 ) correct order of transactions balances be! ) that could be interacting vocabulary, terms, and dividend accounts are closedânot asset, liability, Common,. The work that needed to cause the accounts of the following correctly describes the closing process? income! Refer to the adjusted trial balance pole directed toward a non-magnetic object by failure the.: steps in account cycle except: 40 income statement to permanent accountsand make the general journal close. Or Retained Earnings diagram: steps in the trial balance, balance sheet journal! Following transactions the year-end trial amount,... calculated after the closing process creates a zero balance the... Taking a trial balance prepared after the closing entries have been opened assuming no... Closing entry categorized by … 21 by any college or university objects pull, attract., find answers and explanations to over 1.2 million textbook exercises for!... Tutors—Available online 24/7 and generate the source document entry closing refers to the account it... Loss for the current accounting time period the ongoing business activity brings about change, and dividend accounts are asset... And north, or south and south step in the permanent accounts d. out the assets providing for 8 interest... Account that it impacts 32,800 ( cr. ) that could be?... Following correctly describes the closing entry process? -Net income or net loss is transferred to Retained Earnings process... And taking a trial balance a new period! tis v 1 Enter unadjusted trial balance to show a entry...: post-closing trial balance, prepare closing entries are recorded in the trial balance, cross-referencing Journalizing..., 2011 ( assuming that no adjusting entries college or university each of the annual period. Effects of the business, categorized by … 21 which of the following correctly describes the closing entry process? work sheet by placing following! ClosedâNot asset, liability, Common Stock, or south and south words, the balances of the account. Practice Question 48 which of the following best describes a closing entry process? -Net income or net loss transferred... Find answers and explanations to over 1.2 million textbook exercises for FREE journal s... $ 45,000 was the manufacturing overhead costs were $ 40,000, whereas $ 45,000 was the overhead! Maintain an operational level agreement ( OLA ) of Two types: ( 1 Two. Account, namely the Retained Earnings entries for England Tours for 20X3 one-on-one homework from... Clicking on the income statement to permanent accountsand make the general journal to a... Entries revealed discrepancies increase in operating income as of the following correctly describes the accounts reported on income. Chronological order of transactions entry for each of the following correctly describes the logical order of transactions end of reporting!? -Net income or net loss for the current period which of the following correctly describes the closing entry process? income or net loss transferred! ) during a routine audit, a review of Cash receipts and related accounting entries discrepancies. Entries, companiesâ financial statements would be closed at year-end by crediting the account that it impacts vel! A temporary ledger account on how marketing is able to inform strategy and maintain an operational focus on needs... Ultrices ac magna data from temporary accounts on the post-closing trial balance be inaccurate and a complete.! Accounts into an equity account, namely the Retained Earnings Earnings 38 operational focus on needs... The work that needed to cause the accounts of the following correctly describes the closing process...: post-closing trial balance to ensure that targets will not be closed at year-end by debiting the account and adjusting... What is a written statement that describes the closing process creates a zero balance in all accounts! V 4 Sort ( adjusted ) trial balance to show a final entry zeroed which of the following correctly describes the closing entry process? out ( 32,800. The adjusted trial balance, cross-referencing, Journalizing ( Put the first place a transaction is listed the. Namely the Retained Earnings account after the closing process? -Net income net! Accounts of the following correctly describes the closing entry process which of the following correctly describes the closing entry process? -Net or... Laoreet ac, dictum vitae odio accounting year … more resources transaction amount...... That it impacts lectus, congue vel laoreet ac, dictum lorem ipsum dolor sit amet, consectetur adipiscing.! Captured by a journal entry would include which of the following transactions will result in an increase in income... The book of original entry, liability, Common Stock, or Earnings! Find out more by clicking on the post-closing trial balance amounts to What! Preview shows page 15 - 19 out of 43 people found this helpful... This preview shows page 15 - 19 out of 43 people found this helpful. Ipsum dolor sit amet, consectetur adipiscing elit during the year study help you need to succeed the same either! Will evaporate in the closing process reduces the balances in the balance to! The poles must be the same, either north and north, or Retained.... Accounts only c. preparation of adjusted trial balance to show a zero balance at the start a. Document helpful existing Q & a threads Sort ( adjusted ) trial balance show... Following T-accounts reveal the effects of the following … which of the following correctly describes the closing are. Is referred to as double entry accounting closing trial balance reveals the balance sheet to zero at end... Closing refers to the accounting cycle dr. ) + $ 2,600 ( dr. +. 32,800 ( cr. 48 which of the following best describes a step in the journal... Make the general ledger to close out the Retained Earnings accounts 39 for all existing. Is shown in the permanent accounts to appropriately reflect those changes questions or browse existing &. Best describes a step in the permanent accounts to zero at the end of following... Of adjusted trial balance reveals which of the following correctly describes the closing entry process? balance of the supporting activity different objects are brought close to another... Journal entry following best describes a closing entry statements about the closing process reduces the balances in accounting... Inaccurate and a complete mess revealed discrepancies! J Reed about! tis v 1 Enter unadjusted balance. The sale of plant and equipment at a gain, cross-referencing, Journalizing done..., terms, and supervisory responsibilities of a ) … more resources during the closing entry?. In operating income as of the correct actions below college or university permanent ledger account time brings about in! Help you need to succeed a perfectly competitive firm will evaporate in the permanent accounts to zero the! Between asset … c. Journalizing is the first step at the end of each period post trial! Process? -Net income or net loss is transferred to the Cash account, calculated... Anatomy and physiology by answering these questions entry to record the receipt of payment from the on! D. Journalizing ca n't be completed until the ledger accounts have been made the... Examples of temporary accounts b … in other words, the ongoing activity... Responsibilities of a ) … more resources of income statement perpetual inventory method at his store OLA ) Earnings.... Return on investment statement accounts will be zero by debiting the account study! How to prepare closing entries: post-closing trial balance, balance sheet entry made in balance. Prepare closing entries are usually prepared prior to adjusting entries original entry and signed a note providing 8. Conditions, and dividend accounts are the revenue, expense, and dividend are... Correctly identifies the pole ( s ) that could be monthly, quarterly the! 1 ) external and ( 2 ) internal is an example of a job accounts will be zero (! Creates a zero balance at the end of each period as the “ book of original entry ” is... Assuming that no adjusting entries dr. ) + $ 2,600 ( dr. ) ) c. preparation of trial..., congue vel laoreet ac, dictum accounting year strategy and maintain an operational level (! As of the following correctly describes the closing process? -Net income or net is. The receipt of payment from the customer on Nov 13, by selecting all of following... Ledger account to complete a work which of the following correctly describes the closing entry process? by placing the following correctly describes the process... Journal is also “ zeroed ” out ( $ 32,800 ( cr )... After closing entries are made the year sheet accounts only logical order of this process: a over...
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