Financial Accounting, Student Value Edition (4th Edition)
4th Edition
ISBN: 9780134114811
Author: Robert Kemp, Jeffrey Waybright
Publisher: PEARSON
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Textbook Question
Chapter 3, Problem 8SC
What do closing entries accomplish?
- a. Bring the Retained Earnings account to its correct ending balance
- b. Transfer revenues, expenses, and dividends to retained earnings
- c.Zero out the revenues, expenses, and dividends to prepare them for the next accounting period
- d. All of the above
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If Income Summary has a debit balance after revenues
and expenses have been closed into it, the closing entry for
Income Summary will include a
Select one:
a. Credit to Dividends.
b. Debit to Dividends
c. Credit to Retained Earnings.
d. Debit to Retained Earnings.
What do closing entries accomplish?
Zero out the revenues, expenses, and dividends
Transfer revenues, expenses, and dividends to the Retained Earnings account
Bring the Retained Earnings account to its correct ending balance
All of the above
What do closing entries accomplish?
a. Zero out the revenues, expenses, and dividends
b. Transfer revenues, expenses, and dividends to the Retained Earnings account
c. Bring the Retained Earnings account to its correct ending balance
d. All of the above
Chapter 3 Solutions
Financial Accounting, Student Value Edition (4th Edition)
Ch. 3 - If XYZ Consulting performs a consulting service,...Ch. 3 - Prob. 2DQCh. 3 - Prob. 3DQCh. 3 - Prob. 4DQCh. 3 - Prob. 5DQCh. 3 - Prob. 6DQCh. 3 - Prob. 7DQCh. 3 - Prob. 8DQCh. 3 - What kind of account is accumulated depreciation?...Ch. 3 - Prob. 10DQ
Ch. 3 - Prob. 1SCCh. 3 - Adjusting the accounts is the process of a....Ch. 3 - Which of the following terms describes the types...Ch. 3 - Assume the weekly payroll of ASR, Inc., is 4,500....Ch. 3 - Prob. 5SCCh. 3 - Prob. 6SCCh. 3 - Prob. 7SCCh. 3 - What do closing entries accomplish? a. Bring the...Ch. 3 - Prob. 9SCCh. 3 - Which correctly represents the flow of information...Ch. 3 - Prob. 11SCCh. 3 - Prob. 12SCCh. 3 - Prob. 1SECh. 3 - Prob. 2SECh. 3 - Prob. 3SECh. 3 - Adjusting journal entryprepaid rent (Learning...Ch. 3 - Prob. 5SECh. 3 - Prob. 6SECh. 3 - Prob. 7SECh. 3 - Adjusting journal entrysalaries, accrued revenue,...Ch. 3 - Prob. 9SECh. 3 - Closing entries (Learning Objective 4) 5-10 min....Ch. 3 - Prob. 11SECh. 3 - Prob. 12SECh. 3 - Prob. 13SECh. 3 - Exercises (Group A) E3-14A. Adjusting journal...Ch. 3 - Adjusting journal entry-prepaid insurance...Ch. 3 - Common adjusting journal entries (Learning...Ch. 3 - Prob. 17AECh. 3 - Common adjusting journal entries (Learning...Ch. 3 - Prob. 19AECh. 3 - Prob. 20AECh. 3 - Prob. 21AECh. 3 - Prob. 22AECh. 3 - Prob. 23AECh. 3 - Prob. 24AECh. 3 - Prob. 25AECh. 3 - Prob. 26AECh. 3 - Prob. 27AECh. 3 - Prob. 28BECh. 3 - Prob. 29BECh. 3 - Prob. 30BECh. 3 - Analyzing errors (Learning Objective 2) 10-15 min....Ch. 3 - Common adjusting journal entries (Learning...Ch. 3 - Prob. 33BECh. 3 - Prob. 34BECh. 3 - Prob. 35BECh. 3 - Prob. 36BECh. 3 - Prob. 37BECh. 3 - Prob. 38BECh. 3 - Prob. 39BECh. 3 - Prob. 40BECh. 3 - Prob. 41BECh. 3 - Problems (Group A) Common adjusting journal...Ch. 3 - Prob. 43APCh. 3 - Prob. 44APCh. 3 - Prob. 45APCh. 3 - Prob. 46APCh. 3 - Prob. 47APCh. 3 - Problems (Group B) Common adjusting journal...Ch. 3 - Prob. 49BPCh. 3 - Prob. 50BPCh. 3 - Effects of adjusting journal entries on income...Ch. 3 - Prob. 52BPCh. 3 - Prob. 53BPCh. 3 - Prob. 1CECh. 3 - Prob. 1CPCh. 3 - Prob. 1CFSAPCh. 3 - Prob. 1EIACh. 3 - Case 2. Brent Robertson and his banker were...Ch. 3 - Prob. 1FACh. 3 - Prob. 1IACh. 3 - Prob. 1SBACh. 3 - Written Communication You have received a letter...Ch. 3 - Prob. 1COP
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- Which of these is the first step in the closing process? (a) Close revenue account(s). (b) Close expense accounts. (c) Close the Income Summary account. (d) Close the drawing account.arrow_forwardWhich of the following statements is correct about closing entries?a. Must debit or credit one income statement account and one statement of financialposition accountb. Include closing the dividends account to income summaryc. All of these choices are correctd. Are posted to the appropriate general ledger accountsarrow_forwardWhat is the goal of the closing process? a.to verify that all adjustments have been made b.to make sure all temporary accounts have a zero balance c.to end the accounting period with a profit d.to move all equity accounts to Retained Earningsarrow_forward
- Which of the following accounts would not be included in the closing entries?a. Service Revenueb. Depreciation Expensec. Retained Earningsd. Accumulated Depreciationarrow_forwardWhich of the following accounts will be closed to Income Summary? Prepaid Expenses. Unearned Revenue. Dividends. Depreciation Expense.arrow_forwardIdentify which of the following accounts would be listed on the company’s Post-Closing TrialBalance.A. Accounts ReceivableB. Accumulated DepreciationC. CashD. Office ExpenseE. Note PayableF. Rent RevenueG. Retained EarningsH. Unearned Rent Revenuearrow_forward
- If the company reports a net loss for the period, then the closing entries will result in an overall ____ to Retained Earnings. A. Debit B. Creditarrow_forwardA. list all of the steps in the accounting cycle? B.Explain th e steps that must be taken for closing entries? C. Explain how one of the entries changes depending on if you have net income or net loss?arrow_forwardWhat is the amount of retained earnings after the closing entries have been posted?arrow_forward
- The effect of closing revenues and expenses to Retained Earnings will be to:arrow_forward17. In preparing closing entries, which of the following columns of the work sheet are the most helpful? a. Adjustments columns b. Adjusted Trial Balance columns c. Income Statement columns d. Balance Sheet columns 18. The primary objective of reversing entries is to a. correct errorss. b. simplify the bookkeeping associated with accruals from the prior period. c. transfer the balance of the expense accounts to the Owner's Capital account and set the accounts equal to zero. d. place the expenses for the current period in the proper accounts. 19. Which of the following comes last in the accounting process? a. Preparation of a post-closing trial balance b. Preparation of an adjusted trial balance c. Worksheet preparation d. Journalizing external transactions 20. Which of the following accounts will appear on the post-closing trial balance? a. Building b. Depreciation expense - building c. Owner's withdrawals d. Service revenuesarrow_forwardWhich of the following describes the purpose(s) of closing entries? a. Adjust the balances of asset and liability accounts for unrecorded activity during the period.b. Transfer the balances of temporary accounts (revenues, expenses, and dividends) to Retained Earnings. c. Reduce the balances of the temporary accounts to zero to prepare them for measuring activity in the next period. d. Both b. and c.arrow_forward
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