Question

identify the account debited and credited in each of the four closing entries, assuming the company...

identify the account debited and credited in each of the four closing entries, assuming the company has net income for the year
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

1. First closing entry is to close revenue accounts: Revenue accounts will be debited and income summary will be credited.

2.Second closing entry is to close expenditure accounts: Income summary account will be debited and expenditure account will be credited.

3.Third closing entry is to close net income to retained earnings :income summary will be debited and retained earnings will be credited.

4.Fourth closing entry is to close dividends to retained earnings: dividends will be debited and retained earnings will be credited.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
For the entries below, identify the account to be debited and the account to be credited....
For the entries below, identify the account to be debited and the account to be credited. Indicate which of the accounts is the income statement account and which is the balance sheet account. Assume the company records prepayments of expenses in asset accounts, and cash receipts of unearned revenues in liability accounts. Entry to record wage expenses incurred but not yet billed or recorded. Entry to record services revenue earned but not yet billed or recorded. Entry to record consulting...
For each transaction, identify which account is debited and which account is credited. Use proper account...
For each transaction, identify which account is debited and which account is credited. Use proper account titles (Cash, Accounts Receivable, etc). Transaction Debit Credit Received cash on account from a customer Paid dividends to stockholders Purchased office supplies on account Received cash from customers for services to be performed next month Paid employee's salary Received a bill for utilities to be paid next month Performed services on account Paid cash for a 12-month insurance policy, coverage starting next month Paid...
For each transaction below, indicate the account to be debited and the account to be credited....
For each transaction below, indicate the account to be debited and the account to be credited. No Transaction Debit Credit 1. Invested cash in the business. 2. Received cash for services rendered. 3. Paid salaries by cheque for the week. 4. Bought equipment on credit. 5. Purchased a printer in cash. 6. Borrowed money from the bank. 7. Withdrew cash for personal use. 8. Paid rent by cheque for the month. 9. Issued cheque for the petty cash. 10. Paid...
An accountant has debited an account for $4,300 and credited a liability account for $2,200. Which...
An accountant has debited an account for $4,300 and credited a liability account for $2,200. Which of the following would be an incorrect way to complete the recording of this transaction? Credit an expense account for $2,100. Credit the owner's capital account for $2,100. Credit another liability account for $2,100. Debit another asset account for $2,100. Credit another asset account for $2,100.
<Correcting Entries> A collection of $3,000 from a client on account was debited to Cash $200...
<Correcting Entries> A collection of $3,000 from a client on account was debited to Cash $200 and credited to Service Revenue $200. Step 1 -> Incorrect entry Step 2 -> Correct entry Step 3 -> Correcting entry
1. Which of the following statements about the closing process is correct? A Closing entries are...
1. Which of the following statements about the closing process is correct? A Closing entries are recorded at the end of each reporting period which could be monthly, quarterly or annually. B After closing entries are posted, the balances of the income statement accounts will be zero. C Closing entries are made to zero out the balances of the permanent accounts on the balance sheet. D After closing entries are posted, the only temporary account with a balance is the...
Do account managers usually handle closing entries? Or Staff Accountants? Or does it depend on the...
Do account managers usually handle closing entries? Or Staff Accountants? Or does it depend on the company?
Roscoe has attempted to prepare the closing entries for Chandler Company on this panel. He’s not...
Roscoe has attempted to prepare the closing entries for Chandler Company on this panel. He’s not sure if he’s entered the journal entries correctly, and asks you to review them. You find that one entry is correct, but the other is incorrect. Determine which entry is incorrect, and journalize both closing entries for Chandler Company as of Dec. 31 on the Journal panel. PAGE 25 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 Closing Entries...
Closing entries are required: Closing entries are required: If management has decided to cease operating the...
Closing entries are required: Closing entries are required: If management has decided to cease operating the business. Only if the company adheres to the accrual method of accounting. If a company's bookkeeper does not choose to prepare reversing entries. If the temporary accounts are to reflect correct amounts for each accounting period. In order to satisfy the Internal Revenue Service guidelines.
Complete the necessary entries as at December 31, 2017. Each item is independent of the others....
Complete the necessary entries as at December 31, 2017. Each item is independent of the others. If applicable, the income tax rate is 25%. Ignore GST. Assume that adjusting entries are made only at year end which is December 31. 1. A company that uses a perpetual inventory system made $110,000 worth of purchases throughout 2017. At the end of the year it was discovered that a $20,000 purchase made in December had been recorded incorrectly. When the December purchase...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT