Exam 5: Closing Entries and the Post-Closing Trial Balance

The Income Summary account has an $8,000 credit balance prior to being closed to the owner's Capital account. The owner's Capital account had a $32,000 beginning balance and a $36,500 ending balance. Determine the amount of the owner's drawing during the current period.

The fourth step in the closing process is to close the _____________ account(s) into the ___________ account(s).

Which of the following accounts will have a remaining balance after the closing process is completed?

Cox Co. uses the cash basis of accounting. Cox Co. receives cash from customers in September for services to be performed in November. Which of the following is true?

The owner's Drawing account for the current period is closed to the

Assume a company has a net income that exceeds the owner's drawing for the current year. The owner's Capital account

The most efficient sources for closing entry information are the

Compare and contrast a post-closing trial balance with a trial balance before closing.

The first step in the closing process is to close the _____________ account(s) into the ___________ account(s).

The post-closing trial balance will include

Information for the closing entries is normally obtained from the Adjusted Trial Balance columns of a work sheet.

Entries required to clear or zero the balances of the temporary accounts at the end of the year are called adjusting entries.

On December 31, the ledger accounts of Parker Printing have the following balances after all adjusting entries have been posted. Journalize the four closing entries in the proper order.

The adjusted balances for Tomas Co. are listed below. Cash, $20,000 Accounts Receivable, $2,500 Prepaid Insurance, $3,500 Equipment, $15,000 Accumulated Depreciation, $2,000 Accounts Payable, $4,000 J. Tomas, Capital, $30,000 J. Tomas, Drawing, $10,000 Income from Services, $35,000 Wages Expense, $12,000 Rent Expense, $8,000 The entry to close the drawing account would involve a

Which of the following account(s) are real accounts?

The purpose of the post-closing trial balance is to make sure the debit balances equal the credit balances before the closing process.

The fourth step in the closing procedure is to close the Income Summary account into the Capital account.

Which of the following accounts should be closed to Income Summary at the end of the fiscal year?

Closing entries are prepared

Which of the following accounts should be closed to J. Bean, Capital, in the fourth closing entry?