- Description
ACC 290 Week 5 Apply Connect Exercise (2019 New)
Review the Knowledge Check in preparation for this assignment.
Complete the Week 5 Exercise in Connect.
Note: You have only one attempt available to complete this assignment.
Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date
1.The first two closing entries to the Income Summary account indicate a debit of $56,250 and a credit of $67,900. The third closing entry would be:
2.On December 31, 2019, the ledger of Lopez Company contained the following account balances:
| Cash | $ | 32,100 | Maria Lopez, Drawing | $ | 12,600 |
| Accounts Receivable | 2,450 | Fees Income | 49,250 | ||
| Supplies | 1,650 | Depreciation Expense | 2,300 | ||
| Equipment | 25,100 | Salaries Expense | 16,100 | ||
| Accumulated Depreciation | 2,050 | Supplies Expense | 2,550 | ||
| Accounts Payable | 2,550 | Telephone Expense | 2,150 | ||
| Maria Lopez, Capital | 47,350 | Utilities Expense | 4,200 | ||
3..The Income Summary and Linda Carter, Capital accounts for Carter Production Company at the end of its accounting period follow.
| Income Summary | Account No. 399 | ||||
| Balance | |||||
| Date | Description | Debit | Credit | Debit | Credit |
| 2019 | |||||
| Dec. 31 | Closing | 65,400 | 65,400 | ||
| 31 | Closing | 35,100 | 30,300 | ||
| 31 | Closing | 30,300 | 0 | ||
| Linda Carter, Capital | Account No. 301 | ||||
| Balance | |||||
| Date | Description | Debit | Credit | Debit | Credit |
| 2019 | |||||
| Dec. 1 | 112,000 | 112,000 | |||
| 31 | Closing | 30,300 | 142,300 | ||
| 31 | Closing | 10,200 | 132,100 | ||
Enter the following amounts.
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4.The ledger accounts of AXX Internet Company appear as follows on March 31, 2019:
| ACCOUNT NO. | ACCOUNT | BALANCE | |
| 101 | Cash | $ | 77,000 |
| 111 | Accounts Receivable | 58,520 | |
| 121 | Supplies | 10,300 | |
| 131 | Prepaid Insurance | 24,700 | |
| 141 | Equipment | 115,000 | |
| 142 | Accumulated Depreciation—Equipment | 41,020 | |
| 202 | Accounts Payable | 12,700 | |
| 301 | Aretha Hinkle, Capital | 127,000 | |
| 302 | Aretha Hinkle, Drawing | 12,700 | |
| 401 | Fees Income | 366,060 | |
| 510 | Depreciation Expense—Equipment | 20,860 | |
| 511 | Insurance Expense | 11,100 | |
| 514 | Rent Expense | 32,700 | |
| 517 | Salaries Expense | 163,000 | |
| 518 | Supplies Expense | 5,300 | |
| 519 | Telephone Expense | 6,500 | |
| 523 | Utilities Expense | 9,100 | |
All accounts have normal balances.
Required:
Prepare the closing entries.
Post the transactions in to the appropriate ledger accounts. Hint: Be sure to enter beginning balances.
5.On December 31, the Income Summary account of Madison Company has a debit balance of $32,000 after revenue of $34,000 and expenses of $66,000 were closed to the account. Madison Wells, Drawing has a debit balance of $3,500 and Madison Wells, Capitalhas a credit balance of $53,000.
Required:
Record the journal entries necessary to complete closing the accounts.
What is the new balance of Madison Wells, Capital?
6.
The adjusted ledger accounts of RD Consulting on December 31, 2019, appear as follows
| Account Name | Balance | ||
| Cash | 7,500 | ||
| Accounts Receivable | 2,150 | ||
| Supplies | 2,000 | ||
| Prepaid Insurance | 750 | ||
| Equipment | 19,500 | ||
| Accumulated Depreciation–Equipment | 4,100 | ||
| Accounts Payable | 3,350 | ||
| Roger Dye, Capital | 16,100 | ||
| Roger Dye, Drawing | 4,000 | ||
| Fees Income | 18,800 | ||
| Supplies Expense | 800 | ||
| Insurance Expense | 650 | ||
| Depreciation Expense–Equipment | 600 | ||
| Salaries Expense | 3,350 | ||
| Utilities Expense | 1,050 | ||
Prepare the Balance Sheet and Income Statement columns of the worksheet. Prepare the closing entries for RD Consulting on December 31, 2019. All accounts have normal balances and adjusting entries have been made.
7.
The partial worksheet for the Jamison Company showed the following data on October 31, 2019
.
8.
9.
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 $34,500 shown on the worksheet.
10.
Danos Company’s partial worksheet for the month ended December 31, 2019, is shown below. Open the owner’s capital account (account number 301) in the general ledger and record the December 1, 2019, balance of $71,000 shown on the worksheet.
Use the following account balances from the adjusted trial balance of Gees Catering:
Account Debit Balance Credit Balance
Cash 10,000
Accounts Payable 2,000
- Gees, Drawing 1,000
- Gees, Capital 18,000
Fees Revenue 10,000
Salary Expense 7,000
Rent Expense 6,000
Supplies Expense 6,000
________________________________________
Select the correct closing entry that Gees Catering would make to close their revenue account(s) at the end of the accounting period.
Multiple Choice
Income Summary $ 10,000
Fees Revenue $ 10,000
________________________________________
- Gees, Capital $ 10,000
Fees Revenue $ 10,000
________________________________________
Fees Revenue $ 10,000
Income Summary $ 10,000
________________________________________
Fees Revenue $ 10,000
- Gees, Capital $ 10,000
________________________________________
After the closing entries are posted to the ledger, each expense account will have:
Multiple Choice
a debit balance.
a credit balance.
a negative balance.
a zero balance.
Which of the following accounts is not closed?
Multiple Choice
Cash
Fees Income
Rent Expense
Joan Wilson, Drawing
After the closing entries are posted to the ledger, each revenue account will have:
Multiple Choice
a zero balance.
a debit balance.
a credit balance.
either a debit or a credit balance.
A post-closing trial balance could include all of the following accounts except the:
Multiple Choice
owner’s capital account.
Cash account.
Accounts Receivable account.
Fees Income account.
Which of the following accounts has a normal debit balance?
Multiple Choice
Accounts Receivable
Accounts Payable
Fees Income
- Stark, Capital
Which of the following accounts has a normal credit balance?
Multiple Choice
Accounts Payable
Accounts Receivable
Supplies Expense
- Stark, Drawing
Which of the following statements is correct?
Multiple Choice
The Balance Sheet section of the worksheet contains the data that is used to make closing entries.
The balance of the owner’s drawing account will appear on the post-closing trial balance.
Closing entries are entered directly on the worksheet.
Preparation of the post-closing trial balance is the last step in the end-of-period routine.
Information in the financial statements provides answers to many questions, including:
Multiple Choice
How much do customers owe the business?
What are the business’ current and long term plans for expansion?
Has the business achieved its net income goal for the year?
Has there been a lot of employee turnover?
After the transactions have been posted, the next step in the accounting cycle is to:
Multiple Choice
prepare the financial statements.
prepare the post-closing trial balance.
prepare the worksheet.
journalize and post the adjusting entries.