Question

26. if temporary accounts with debit balances equal to $200,000 and temporary accounts with credit balances...

26. if temporary accounts with debit balances equal to $200,000 and temporary accounts with credit balances equal to $300,000 are closed at the end of the accounting period. Which of the following would occur as a result of the closing entry?

a. Total Owner's Equity would have a net increase of $100,000

b. Long-Term Liabilities would have a net increase of $100,000

c. Total Assets would have a net increase of $100,000

d. Total Owner's Equity would have a net decrease of $100,000

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #2

Answer is a) Total Owner’s equity would have a net increase of $100,000

Temporary accounts are closed end of the year by transferring balance to retained earnings which is part of owners’ equity. There is net credit balance of $100,000 in the temporary account. So it will be debited and credited will be to Owners’ equity. Hence total owner’s equity would have a net increase of $100,000. There is no impact on Long-term liabilities and assets because of closing entries. Answer is a)

answered by: anonymous
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
26. if temporary accounts with debit balances equal to $200,000 and temporary accounts with credit balances...
26. if temporary accounts with debit balances equal to $200,000 and temporary accounts with credit balances equal to $300,000 are closed at the end of the accounting period. Which of the following would occur as a result of the closing entry? a. Total Owner's Equity would have a net increase of $100,000 b. Long-Term Liabilities would have a net increase of $100,000 c. Total Assets would have a net increase of $100,000 d. Total Owner's Equity would have a net...
Which of the following correctly identifies normal balances of accounts? Assets Debit Liabilities Credit Owner's Equity...
Which of the following correctly identifies normal balances of accounts? Assets Debit Liabilities Credit Owner's Equity Credit Revenues Debit Expenses Credit Assets Debit Liabilities Credit Owner's Equity Credit Revenues Credit Expenses Credit Assets Credit Liabilities Debit Owner's Equity Debit Revenues Credit Expenses Debit Assets Debit Liabilities Credit Owner's Equity Credit Revenues Credit Expenses Debit
How does a debit to Cash and credit to Accounts Receivable affect the accounting equation? A....
How does a debit to Cash and credit to Accounts Receivable affect the accounting equation? A. An increase in Assets and another increase in Assets B. Increase in Assets and an increase in Stockholders' Equity C. No net change. Assets are both increased and decreased D. An increase to Assets and an increase in Liabilities
Which of the following group of accounts are increased with a debit? A assets, liabilities, owner’s...
Which of the following group of accounts are increased with a debit? A assets, liabilities, owner’s equity B assets, drawing, expenses C assets, revenues, expenses D assets, liabilities, revenues QUESTION 11 Which of the following group of accounts are increased with a debit? A assets, liabilities, owner’s equity B assets, drawing, expenses C assets, revenues, expenses D assets, liabilities, revenues 5 points    QUESTION 12 Which of the following group of accounts increase with a credit? A Capital, revenues, expenses...
following balances: Accounts receivable $ 12,700 Allowance for doubtful accounts $ 300 (Credit Balance) Net Credit...
following balances: Accounts receivable $ 12,700 Allowance for doubtful accounts $ 300 (Credit Balance) Net Credit Sales $ 640,000 a. If the company estimates that 1% of its net credit sales will be uncollectible, what would the journal entry look like? b. If the company estimates that 10% of its accounts receivables will be uncollectible, what would the journal entry look like? c. What is the net present value for both (a and b)?
4a  Identify which of the following are temporary accounts of San Migael Company. Owner’s Capital Owner’s Drawings...
4a  Identify which of the following are temporary accounts of San Migael Company. Owner’s Capital Owner’s Drawings Equipment Accumulated Depreciation Depreciation Expense 4b) Identify which of the following accounts would have balances on a post-closing trial balance. Service Revenue Income Summary Notes Payable Interest Expense Cash 4c. The closing entry process consists of closing all asset and liability accounts. out the owner’s capital account. all permanent accounts. all temporary accounts. 4d.The final closing entry to be journalized is typically the entry...
On November 30, 2016, Davis Company had the following account balances: Debit Credit Cash $3,090 Accounts...
On November 30, 2016, Davis Company had the following account balances: Debit Credit Cash $3,090 Accounts Receivable 9,900 Allowance for Doubtful Accounts $100 Inventory 17,750 Supplies 1,400 Land 9,000 Buildings and Equipment 42,000 Accumulated Depreciation 4,200 Accounts Payable 10,700 Common Stock 20,000 Retained Earnings (1/1/2016) 42,400 Dividends 2,000 Sales Revenue 69,700 Cost of Goods Sold 36,860 Salaries Expense 12,500 Advertising Expense 8,100 Other Expenses 4,500 During the month of December, Davis entered into the following transactions: Date Transaction Dec. 4...
A) Which of the following statements is true? A. A credit to Utilities Expense would decrease...
A) Which of the following statements is true? A. A credit to Utilities Expense would decrease Retained Earnings. B. Cash, Dividends, Accumulated Depreciation, and Wage Expense all have debit balances. C. Expenses are increased with a debit, and decrease stockholders’ equity. D. The issuance of stock decreases a company’s assets and increases its stockholders’ equity. E. If a company purchases inventory on account, its total assets will not change. B) A company completes a job for which it had previously...
On March 31, 20Y4, the balances of the accounts appearing in the ledger of Danns Furnishings...
On March 31, 20Y4, the balances of the accounts appearing in the ledger of Danns Furnishings Company, a furniture wholesaler, are as follows: Accumulated Depreciation—Building $742,600 Administrative Expenses 515,600 Building 2,552,350 Cash 170,400 Cost of Merchandise Sold 3,698,650 Interest Expense 10,400 Kathy Melman, Capital 1,505,050 Kathy Melman, Drawing 175,450 Merchandise Inventory 992,800 Notes Payable 244,350 Office Supplies 20,000 Salaries Payable 8,100 Sales 6,501,450 Selling Expenses 715,850 Store Supplies 86,300 Journalize the closing entries. Refer to the chart of accounts for...
35) After all closing entries are made and posted, the balance in the owners' capital account...
35) After all closing entries are made and posted, the balance in the owners' capital account in the ledger will be equal to * A he beginning balance in owners' capital in the statement of changes in equity B Zero C The balance of owners' capital on the post-closing trial balance D The balance of owners' capital on the pre-closing trial balance E Profit or loss for the year 34) Which of the following statements is incorrect? A Permanent accounts...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT