0
Which account has a balance equal to net income immediately before it is closed?
Wiki User
∙ 11y ago
income summary account.
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
Which account would be closed by posting a debit to the account?
The closing process seeks to reduce the balance of each account that needs to be closed to zero; therefore, the closing entry must reverse whatever balance the account already has. This means that any (temporary) account that normally has a credit balance will be closed by posting a debit (and vice-versa). Revenue is an example of an account that must be closed with a debit, since it is normally a credit account.
Can you close a checking acc when you have a neg balance?
Can a checking account be closed when you have a neg balance
Can a credit card company report a 30 day late on a closed account that still has a balance?
If a credit card is closed it cannot have a balance. Just because you have stopped using the ard you cannot declare the account closed. If you owe even one penny, the account is open and the credit card company can 'report a 30 day late'
What is the accounting treatment of saving deposit in closed bank?
Even if the account is closed, the cash inside of the account is still considered an asset and no accounting entries are necessary. If a new account is opened, the new account is debited the cash balance and the old account is credited.
How long does it take for credit card accounts to be closed if they have not been paid?
If a credit card account has an outstanding balance that is defaulted on, the account will not be closed. The account will be charged to profit and loss, or sent/sold/assigned to collections, either internal or external.
Which account would be closed by posting a debit to the account?
The closing process seeks to reduce the balance of each account that needs to be closed to zero; therefore, the closing entry must reverse whatever balance the account already has. This means that any (temporary) account that normally has a credit balance will be closed by posting a debit (and vice-versa). Revenue is an example of an account that must be closed with a debit, since it is normally a credit account.
Can a dormant account be closed and balance transferred to Profit loss account?
Can_a_dormant_account_be_closed_and_balance_transferred_to_Profit_loss_account
Can you close a checking acc when you have a neg balance?
Can a checking account be closed when you have a neg balance
Can a company who closes your account try to collect interest three years after closing the account?
Yes, if you still owed a balance at the time the account was closed. Just because a company closes an account does not mean that any balances that are owed to them disappear. If your account was closed and there was still a balance outstanding and you did not pay that balance, the company has every right to collect the balance and any interest outstanding.
How soon can you open a bank account if you have an account that was closed due to late or no payments?
Immediately after, before it goes onto your credit report. There are some banks that don't do a background check - they are usually in Walmarts.
Are Sales Assets or Liabilities in terms of account Trial Balance?
Neither. Sales will be listed as an income statement account on the firm's trial balance. Once the accounts are closed at year end, sales will be closed into Retained Earnings.
How long must a share draft account remain open with a negative balance before it may be closed by the institution?
The bank has the option to shut down any account that has a negative balance. That is technically an illegal loan and the credit institution can get in trouble for your poor budgeting.
What happens if the bank closes your acct down can you go to jail for that?
It depends on why the bank closed your account.No If:The bank closed your account because you did not use the account for the past few months orThe bank closed your account because you did not maintain minimum balance requirements orYes If:a. The bank closed your account because the account was involved in suspicious activities like money launderingb. The bank closed your account because links to known terrorists or drug dealers were found from your bank accountc. The bank closed your account because you issued checks to people without maintaining sufficient balance in your bank account
Can a credit card company keep adding interest on a closed account?
Yes, until the account balance is paid in full.
Can a credit card company report a 30 day late on a closed account that still has a balance?
If a credit card is closed it cannot have a balance. Just because you have stopped using the ard you cannot declare the account closed. If you owe even one penny, the account is open and the credit card company can 'report a 30 day late'
What is the accounting treatment of saving deposit in closed bank?
Even if the account is closed, the cash inside of the account is still considered an asset and no accounting entries are necessary. If a new account is opened, the new account is debited the cash balance and the old account is credited.
Will a credit card company accept a lower payoff for a balance if the account is not past due but closed?
No
