12. Our Adjusted Trial Balance Is Prepared study sets are convenient and easy to use whenever you have the time. need not be posted if the financial statements are prepared from Not earned but the cash has been received, C. Needed to bring accounts up to date and match revenue and expense. A post-closing trial balance is prepared. The last payday of December is Friday, December 27. Closing entries are posted to the journal, then the ledger and then a post closing trial balance is … The adjusting entry necessary at the end of the fiscal period ending on Tuesday is, B. Debit Salary Expense, $10,142; credit Salaries Payable, $10,142, The net income reported on the income statement is $89,059. Closing entries must be journalized and posted. Accrued revenues would appear on the balance sheet as, Depreciation Expense and Accumulated Depreciation are classified, respectively, as. Which of the accounts below would be closed by posting a debit to the account? D. A cost not yet recorded as an expense but has been paid. C. aren’t needed if adjusting entries are prepared. Net income, as corrected, is, Using accrual accounting revenue is recorded and reported only, When the services are rendered without regard to when cash is received, When they are incurred, whether or not cash is paid. A. of accounting. After posting the second closing entry to the income summary account, the balance will be equal to, A. The entry for the payment of the payroll on Friday, January 10 includes a. B. A. An optional end-of-period spreadsheet (worksheet) is prepared. False Closing entries transfer the net income or net loss to the withdrawals account. As a result, the temporary accounts will begin the following accounting For the year ending December 31, what is the effect of these errors on revenues, expenses, and net income? Chpt 4 11th Ed Chpt 4: Completing the Accounting Cycle 1 LO 1 Prepare a worksheet Below is a table demonstrating the basic form of a worksheet and the five steps for preparing it. After closing entries have been journalized and posted, all temporary accounts in the ledger should have zero balances. Been incurred, not paid, and not recorded. c. at management's discretion. When the services are rendered without regard to when cash is received, Using accrual accounting, expenses are recorded and reported only, B. True When the revenue account is closed, Income summary is credited. need not be journalized since they appear on the worksheet. 36. Closing entries are journalized and posted a. at the end of each interim accounting period. D. must Need not be journalized if adjusting entries are prepared B. entries made at the end of an accounting period to zero out all temporary accounts and transfer their balances to permanent accounts Closing revenue and expense accounts to the Income Summary account is an optional D. Snow removal services that have been provided but have not been billed or paid. Which of the following is considered to be an accrued expense? aren't needed if adjusting entries are prepared. At the end of the fiscal year, the usual adjusting entry to prepaid insurance to record expired insurance was omitted. b. before the financial statements are prepared. The final closing entry to be journalized is typically the entry that closes the a. revenue accounts. Which of the following is not true regarding depreciation? Check out our new Adjusted Trial Balance Is Prepared study sets, and maximize your study time. Try sets created by other students like you, or make your own with customized content. Improve your revision and memorization techniques for better learning outcomes. A post‐closing trial balance is prepared to check the clerical accuracy of the closing entries and to prove that the accounting equation is in balance before the next accounting period begins. Which of the following statements is true? Closing entries are journalized and posted to the ledger. Closing entries A. need not be journalized since they appear on the worksheet. Before the closing entries are journalized and posted, there is only one account in the general ledger that shows the revenue and expenses for the fiscal period. Definition of Closing Entries Closing entries transfer the balances from the temporary accounts to a permanent or real account at the end of the accounting year. true The Balance Sheet section of the worksheet contains the data that is used to make closing entries . When they are incurred, whether or not cash is paid. A computer technician has installed the latest software updates, but you have not received an invoice or made payment, If there is a balance in the prepaid rent account after adjusting entries are made, it represents a(n). 11. B. The net income or net loss for the period. 10. Closing Entries: A company's closing entries are usually the last entries posted to the accounting system prior to preparing the financial statements. b. after the financial statements are prepared. Closing journal entries are made at the end of an accounting period to prepare temporary accounts for the next period. On which financial statement will Income Summary be shown? Adjusting entries are made at the end of the accounting period (but prior to preparing the financial statements) in order for a company's financial statements to be up-to-date on the accrual basis of accounting. A. Review key facts, examples, definitions, and theories to prepare for your tests with Quizlet study sets. What are adjusting entries? false true Quizlet is the easiest way to study, practice and master what you’re learning. However, adjusting entries have not been made at the end of the period for supplies expense of $2,144 and accrued salaries of $1,441. D. must be Discover our most popular flashcard sets. d. must be journalized and posted. B. need not be posted if the financial statements are prepared from the worksheet. The difference between the balance of a fixed asset account and the related accumulated depreciation account is termed, Accumulated Depreciation and Depreciation Expense are classified, respectively, as, The type of account and normal balance of Unearned Consulting Fees is, Accrued expenses are ordinarily reported on the balance sheet as. Closing entries are journalized and posted a. before the financial statements are prepared. = $30,200 (dr.) + $2,600 (dr.)). Closing entries a. need not be journalized if adjusting entries are prepared b. need not be posted if the financial statements are prepared from the work sheet c. are not needed if adjusting entries are prepared *d. must be journalized and posted 723. Increases the balance of a liability account, The statement of retained earnings should be prepared, D. After the income statement and before the balance sheet. need not be posted if the financial statements are prepared from the worksheet. Temporary accounts (also known as nominal accounts) are ledger accounts used to record transactions for only a single accounting period and are closed at the end of the period by making appropriate closing entries. Which of the following accounts will not be closed to Income Summary at the end of the fiscal year? After the closing entries are journalized and posted, DELIVERY FEES would NOT have a balance. If the effect of the debit portion of an adjusting entry is to increase the balance of an expense account, which of the following describes the effect of the credit portion of the entry? The post-closing trial balance differs from the adjusted trial balance in that it does not, Prior to the adjusting process, accrued expenses have, B. The Income Summary account is also “zeroed” out ($32,800 (cr.) Which of the following is not true about closing entries? Buster Industries pays weekly salaries of $25,354 on Friday for a five-day week ending on that day. User: Closing entries A. need not be journalized since they appear on the worksheet.B. Which of the following accounts will be closed to the retained earnings account at the end of the fiscal year? A business pays biweekly salaries of $20,000 every other Friday for a ten-day period ending on that day. Before closing entries are journalized and posted, the Income Summary account in the general ledger has a normal credit balance. d. at management's discretion. C. aren’t needed if adjusting entries are prepared. False Closing entries transfer the net income or net loss to the withdrawals account. Net income for the year will be overstated. Definition of Adjusting Entries Adjusting entries are usually made on the last day of an accounting period (year, quarter, month) so that a company's financial statements comply with the accrual method of accounting. Closing entries A. Need not be posted if the financial statements are prepared from the work sheet C. Are not needed if adjusting entries are prepared D. Must … Closing entries a. need not be journalized if adjusting entries are prepared b. need not be posted if the financial statements are prepared from the work sheet c. are not needed if adjusting entries are prepared d. must be journalized and posted after adjusting entries … After the closing entries are journalized and posted, only permanent, balance sheet accounts remain open. B. Many companies vary on when they do closing entries. Closing entries a. need not be journalized if adjusting entries are prepared b. need not be posted if the financial statements are prepared from the work sheet c. are not needed if adjusting entries are prepared d. must be journalized and posted ANSWER: d s Log in for more information. There are four closing entries. D) must be journalized True or False? 723. closing entries must be journalized and posted +139 more terms Kgoodwin284 Accounting Chapter 4 Smart Book 44 terms View Set Accounting Chapter 4 Smart … The first one is to close revenues, the second one is to close expenses, the third one is to close ____, and the last one is to close the ____. __________ is/are created when a revenue or expense has NOT been recorded by the end of the accounting period. Which of the following account groups are nominal accounts? … For the year ending December 31, Orion, Inc. mistakenly omitted adjusting entries for $1,500 of supplies that were used, (2) unearned revenue of $4,200 that was earned, and (3) insurance of $5,000 that expired. Rent Revenue, Fees Earned, Miscellaneous Expense. The general term employed to indicate an expense that has not been paid and has not yet been recognized in the accounts by a routine entry is. What effect will the following adjusting journal entry have on the accounting records? More than 50 million students study for free with the Quizlet app each month. C) are not needed if closing entries are prepared. A) need not be journalized since they appear on the worksheet. States that the revenues and related expenses should be reported in the same period, Using accrual accounting, revenue is recorded and reported only, B. Closing entries are the last entries in a ledger for a financial cycle and must be done to reflect the changes to permanent accounts. Feedback Closing entries Select one: need not be posted if the financial statements are prepared from the work sheet must be journalized and posted are not needed if adjusting entries are prepared need not be journalized if adjusting entries Closing entries must be journalized and posted. Closing entries a. need not be journalized if adjusting entries are prepared b. need not be posted if the financial statements are prepared from the work sheet c. are not needed if adjusting entries are prepared d. must be journalized Adjusting entries must be journalized and posted before the closing entries are journalized and posted. Create your own flashcards or choose from millions created by other students. D. All real accounts are closed at the end of the period. Solved Expert Answer to Adjusting entries must be journalized and posted before the closing entries are journalized and posted. d. at the end of each interim accounting period. Which account would normally not require an adjusting entry? 722. c. after the financial statements are prepared. Before closing entries are journalized and posted, the Income Summary account in the general ledger has a normal credit balance. Closing entries may be defined as journal entries made at the end of an accounting period to transfer the balances of various temporary ledger accounts to some permanent ledger account. Assume the next pay period begins on Monday, December 30 and the proper adjusting entry is journalized at the end of the fiscal period (December 31). The following T-accounts reveal the effects of the closing entries: Post-Closing Trial Balance The post closing trial balance Which of the following accounts ordinarily appears in the post-closing trial balance? Unearned revenue is what type of an account? This is becaues temporary or nominal accounts, (also called income statement accounts), are measured periodically; and so, the amounts in one accounting period should be closed or brought to zero so that they won't get mixed with those of the next period. false true Which of the following is an example of accrued revenue? D. Depreciation expense reflects the decrease in market value each year. 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