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). Quizlet is the easiest way to study, practice and master what you’re learning. Closing entries are the last entries in a ledger for a financial cycle and must be done to reflect the changes to permanent accounts. Which of the following accounts ordinarily appears in the post-closing trial balance? B. As a result, the temporary accounts will begin the following accounting 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. D. A cost not yet recorded as an expense but has been paid. need not be posted if the financial statements are prepared from the worksheet. Feedback The net income or net loss for the period. The entry for the payment of the payroll on Friday, January 10 includes a. D) must be journalized aren't needed if adjusting entries are prepared. true The Balance Sheet section of the worksheet contains the data that is used to make closing entries . What effect will the following adjusting journal entry have on the accounting records? Which of the accounts below would be closed by posting a debit to the account? 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 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. of accounting. 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 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. True When the revenue account is closed, Income summary is credited. Which of the following statements is true? Closing revenue and expense accounts to the Income Summary account is an optional 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. At the end of the fiscal year, the usual adjusting entry to prepaid insurance to record expired insurance was omitted. Which of the following is not true about closing entries? C) are not needed if closing entries are prepared. Which of the following is not true regarding depreciation? A. A post-closing trial balance is prepared. Closing entries are journalized and posted a. at the end of each interim accounting period. false true 723. Closing journal entries are made at the end of an accounting period to prepare temporary accounts for the next period. D. Depreciation expense reflects the decrease in market value each year. b. after the financial statements are prepared. B. need not be posted if the financial statements are prepared from the worksheet. Many companies vary on when they do closing entries. A business pays biweekly salaries of $20,000 every other Friday for a ten-day period ending on that day. 11. C. aren’t needed if adjusting entries are prepared. B. Not earned but the cash has been received, C. Needed to bring accounts up to date and match revenue and expense. C. aren’t needed if adjusting entries are prepared. Create your own flashcards or choose from millions created by other students. Closing entries A. D. must be Buster Industries pays weekly salaries of $25,354 on Friday for a five-day week ending on that day. Review key facts, examples, definitions, and theories to prepare for your tests with Quizlet study sets. There are four closing entries. False Closing entries transfer the net income or net loss to the withdrawals account. 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. 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. 722. More than 50 million students study for free with the Quizlet app each month. Discover our most popular flashcard sets. 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. 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 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. Solved Expert Answer to Adjusting entries must be journalized and posted before the closing entries are journalized and posted. 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 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). 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. 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. After the closing entries are journalized and posted, only permanent, balance sheet accounts remain open. A) need not be journalized since they appear on the worksheet. The final closing entry to be journalized is typically the entry that closes the a. revenue accounts. c. after the financial statements are prepared. Net income for the year will be overstated. Check out our new Adjusted Trial Balance Is Prepared study sets, and maximize your study time. Closing entries must be journalized and posted. True or False? false true closing entries must be journalized and posted +139 more terms Kgoodwin284 Accounting Chapter 4 Smart Book 44 terms View Set Accounting Chapter 4 Smart … On which financial statement will Income Summary be shown? Adjusting entries must be journalized and posted before the closing entries are journalized and posted. 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. 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 ____. entries made at the end of an accounting period to zero out all temporary accounts and transfer their balances to permanent accounts When they are incurred, whether or not cash is paid. An optional end-of-period spreadsheet (worksheet) is prepared. D. must Before closing entries are journalized and posted, the Income Summary account in the general ledger has a normal credit balance. The following T-accounts reveal the effects of the closing entries: Post-Closing Trial Balance The post closing trial balance Which account would normally not require an adjusting entry? d. at management's discretion. Closing entries must be journalized and posted. Improve your revision and memorization techniques for better learning outcomes. 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. Been incurred, not paid, and not recorded. After closing entries have been journalized and posted, all temporary accounts in the ledger should have zero balances. B) need not be posted if the financial statements are prepared from the worksheet. 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