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What does a post closing trial balance contain?
The post closing trial balance contains all accounts that are in the General Ledger, with the exception of any "closed accounts" such as revenue, expenses, etc.A post closing trial balance is created after all adjusting entries and closing has been done to the ledger.My first answer I answered with Trial Balance or Adjusted Trial Balance in mind, as stated above, Post Closing Trial Balance is filled out AFTER all expense, revenue, and other related accounts have been closed.
Are the accounts in general ledger always arranged in an alphabetical order?
The liability accounts and expense accounts are the only ones arranged alphabetically.
Is a compound entry in the general journal is made to close expense accounts?
A compound entry in a general journal is any entry that has more than one debit or credit value. A compound entry is used to close the expense accounts because you will need to credit all of the expense accounts, then debit either the Income Summary, or the Capital itself.
What are two of the four accounts in the general ledger which need to be updated with adjusting entries?
cash and rent expense
What of the two of the four accounts in the general ledger which need to be updated with adjusting entries?
cash and rent expense
Are revenue and expense accounts real accounts?
No real accounts are for business possessions like assets and stock revenue and expense items are recorded in the nominal also named the general ledger. Personal accounts are for debtors and creditors accounts.
What does a post closing trial balance contain?
The post closing trial balance contains all accounts that are in the General Ledger, with the exception of any "closed accounts" such as revenue, expenses, etc.A post closing trial balance is created after all adjusting entries and closing has been done to the ledger.My first answer I answered with Trial Balance or Adjusted Trial Balance in mind, as stated above, Post Closing Trial Balance is filled out AFTER all expense, revenue, and other related accounts have been closed.
Are the accounts in general ledger always arranged in an alphabetical order?
The liability accounts and expense accounts are the only ones arranged alphabetically.
Is a compound entry in the general journal is made to close expense accounts?
A compound entry in a general journal is any entry that has more than one debit or credit value. A compound entry is used to close the expense accounts because you will need to credit all of the expense accounts, then debit either the Income Summary, or the Capital itself.
What are two of the four accounts in the general ledger which need to be updated with adjusting entries?
cash and rent expense
What of the two of the four accounts in the general ledger which need to be updated with adjusting entries?
cash and rent expense
Is closing entries normally entered in the general journal and then posted to the work sheet?
Closing entries are normally entered in the general journal to zero temporary and nominal accounts. They do not need to be posted to the worksheet.
What are the types of business transactions in accounting?
~Vivek Kumar Ambastha The Accounting Cycle The accounting cycle consists of the many steps the accounting staff follows, beginning with analyzing transaction and ending with preparing a post-closing trial balance. When the accountant analyzes source documents to determine how to record the business transaction. Thus, the basic input of the accounting cycle consists of the various source documents, including sales invoices, purchase invoices, and time cards for hourly employees. The output from the accounting cycle consists of the financial statements. The three basic financial statements are the income statement, the balance sheet and the statement of owner's equity. Adjusted Trial Balance Adjustments are recorded in the general journal at the end of each accounting period, generally as of the last date of the month. The recorded amounts are then posted to the general ledger account as of the last day of the accounting period. After posting the adjustments, the accountant prepares an adjusted trial balance to prove the equality of debits and credits. Preparation of Financial Statements The adjusted trial balance is used to prepare the income statement and the balance sheet. The revenue accounts make up the revenue of the hospitality enterprise, while the expense account make up the expenses of the business. The difference between the revenues and expenses is either net income or net loss. Net income results when revenues exceed expenses, while a net loss results when expenses exceed revenues. Closing Entries In closing entries the revenue and expense accounts are nominal accounts, since they are sub classification of owner's equity. Accountants separate revenue and expense account to get more detailed information for use in preparing the financial statements. Once the financial statements are prepared, the accountant closes the revenue and expense account, clearing the accounts to zero by transferring the balances to the owner's equity capital account. The accountant closes these accounts with closing entries that must be recorded in the general journal and then posted to the general ledger accounts. There are three basic steps are involved in closing process, they are * Close the revenue and expense accounts to the income summary account. * Close the income summary account to the owner's equity account. * Close the owner's drawing accounts to the owner's equity account. Post-Closing Trial Balance After the accountant records and posts the closing entries, the only accounts with balances that remain in the general ledger are the balance sheet accounts. These accounts must be in balance; that is, the total of debit balance accounts must equal the total of credit balance accounts. To test this equality and to check the accuracy of the closing process, the accountant prepares a post-closing trial balance. As with the trial balance prepared before the closing process, account balances are listed in debit and credit columns and totaled to ensure that debits equal credits.
Closing entries are necessary to a business so?
the accounts in the general ledger are updated and ready for the next fiscal period.
What are the accounting journal entries to record an overcharged cost that was posted to an expense purchase to Accounts Payable and was paid at a later date?
general journal
In what journal should you list a telephone expense?
This could be one of two Journals, for the most part, a General Journal is where the entry goes, however, many companies choose to use subsidiary journals in order to keep accounts more organized and may set up a Subsidiary Expense Journal, in which case the telephone expense would be listed in that subsidiary journal along with all other expenses and the General Journal would only show a total for all expense accounts while the subsidiary journal would break each expense account down into more detail.So either the General Journal or a Subsidiary Expense Journal (depending on the company)
Where does chart accounts begin?
The Chart of Accounts is the system of accounts that make up the General Ledger. This begins with our assets starting with the most liquid (cash) and numbered usually as follows. 1000 - 1999: asset accounts 2000 - 2999: liability accounts 3000 - 3999: equity accounts 4000 - 4999: revenue accounts 5000 - 5999: cost of goods sold 6000 - 6999: expense accounts 7000 - 7999: other revenue (for example, interest income) 8000 - 8999: other expense (for example, income taxes)
