18 Questions
What is the total of all expenses incurred during the year?
$254,000
What is the ending capital of the owner as of December 31, 2017?
$70,300
What is the total assets of the company as of December 31, 2017?
$102,300
What is the total revenues of the company for the year ended December 31, 2017?
$72,000
What is the total liabilities of the company as of December 31, 2017?
$95,300
What is the net profit of the company for the year ended December 31, 2017?
$23,300
What is the total amount of revenues recorded in the income summary?
$150,000
What is the total amount of expenses recorded in the income summary?
$126,700
What is the net income after closing the revenues and expenses in the income summary?
$23,300
What is the amount of drawings closed to capital?
$25,000
What is the balance of capital after closing the net income and drawings?
$70,300
What is the total debit balance of the post-closing trial balance?
$102,300
What is the primary purpose of closing temporary accounts?
To have a fresh start for the next year and measure the accounts separately
Which type of account is not closed?
Asset account
What is the sequence of closing entries?
Revenue to income summary, expenses to income summary, income summary to capital, drawings to capital
What is the purpose of the income summary account?
To close revenue and expense accounts
What is the purpose of the fourth closing entry?
To close drawings to capital
What is the result of closing the temporary accounts?
The accounts will have a zero balance
Learn about closing temporary accounts in accounting principles. Understand the types of accounts, including revenue, expenses, assets, liabilities, and owner's equity. Prepare for financial statements and start fresh each year.
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