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Exam 6: Closing Entries and Teh Postclosing Trial Balance

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Question 51

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Which of the following statements is not correct?

A) The owner's drawing account is closed to the Income Summary account.
B) Before the Income Summary account is closed, its balance represents the net income or net loss for the accounting period.
C) The Income Summary account is used only at the end of an accounting period to help with the closing procedure.
D) The Income Summary account is a temporary owner's equity account.

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Question 52

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Use the following account balances from the adjusted trial balance of Gees Catering: What is the amount that Gees Consulting would report as the ending balance in the R. Gees, Capital account at the end of the year?

A) $18,000
B) $28,000
C) $ 8,000
D) $26,000

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Question 53

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The ________ entries reduce the balances of the revenue, expense, and drawing accounts to zero so they are ready to record data for the next period.

Match the description with the accounting terms.

Use the following account balances from the adjusted trial balance of ABC Consulting: Select the correct closing entry that ABC Consulting would make to close their revenue account(s) at the end of the accounting period.

At the end of the accounting period, the balances of the revenue and expense accounts are transferred to the ________ account.

After the closing entries are posted to the ledger, each expense account will have:

"Income and Expense Summary" is another name for the Income Summary account.

From the following list identify the accounts that will appear on the post-closing trial balance by placing an X before those accounts. ________ A. Accounts Payable ________ B. Accounts Receivable ________ C. Accumulated Depreciation ________ D. Cash ________ E. Depreciation Expense ________ F. Equipment ________ G. Fees Income ________ H. Allie Lee, Capital ________ I. Allie Lee, Drawing ________ J. Salaries Expense ________ K. Supplies ________ L. Supplies Expense ________ M. Utilities Expense

The heading "Closing Entries" is usually written in the Description column of the general journal above the first closing entry.

On December 31, the Income Summary account of Coulter Company has a credit balance of $20,000 after revenue of $89,000 and expenses of $69,000 were closed to the account. Joseph Coulter, Drawing has a debit balance of $3,000 and Joseph Coulter, Capital has a credit balance of $45,000. Record the journal entries necessary to complete closing the accounts. Use 14 as the general journal page number. Then, post the closing entries to the Joseph Coulter, Capital account.

Which of the following statements is correct?

After the worksheet has been completed, the next step in the accounting cycle is to:

The first step in the closing process is to close:

On December 31, the ledger of Davis Company contained the following account balances: All the accounts have normal balances. Journalize the closing entries. Use 11 as the general journal page number. (Note: if you want the accounts to be in alpha order, they need to be re-arranged.)

The adjusted ledger accounts of Miraldi Landscaping Design on December 31, 2019, appear as follows. All accounts have normal balances and adjusting entries have been made. Extend the balances to the Balance Sheet and Income Statement columns of the worksheet. Then, journalize the closing entries on page 12 of a general journal.

Dorsey Company's partial worksheet for the month ended March 31, 2019, is shown below. Open the owner's capital account (account number 301)in the general ledger and record the March 1, 2019, balance of $32,000 shown on the worksheet. Journalize the closing entries on page 3 of a general journal. Post the closing entries to the owner's capital account. Prepare a post-closing trial balance.