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Which account have balance after closing entries are posted?
which acount have a balance after a closing entry is posted? a)salary expense b)retained earning c)income summary d)revenue
Is closing the revenue account the second closing entry?
no. the first step is closing the revenue account. Then comes expenses and then income summary.
Why is a compound entry useful when closing expense accounts?
A compound entry is useful when closing expense accounts because it allows multiple accounts to be closed simultaneously in a single journal entry, streamlining the accounting process. This reduces the number of entries needed, minimizing errors and enhancing efficiency. Additionally, it provides a clear summary of all expense accounts being closed, improving financial reporting and clarity in the accounting records. Overall, it simplifies the closing process and maintains better organization within the ledger.
What is the closing Entry?
A closing entry is an accounting journal entry made at the end of an accounting period to transfer temporary account balances to permanent accounts. This process involves closing revenue and expense accounts, which resets their balances to zero for the next period, and transferring the net income or loss to the retained earnings account. Closing entries ensure that financial statements accurately reflect the performance of the business over a specific period.
What is the entry to close the depreciation expense account would include a debit of?
To close the depreciation expense account, the entry would include a debit to the Income Summary account. The corresponding credit would be made to the depreciation expense account, effectively zeroing it out for the period. This entry reflects the transfer of the expense to the Income Summary, where it will ultimately affect the net income calculation for the period.
After posting the second closing entry to the income summary account the balance will be equal to?
Zero
How do you balance an expense account?
i think it depends on what entry your using..but usually it the income of cash as a receivable of revenue
What is the journal entry for warranty expense charged against the revenue?
Debit Warranty Expense Credit Warranty Liability
What accounts could appear in adjusting entry closing entry and reversing entry?
In adjusting entries, accounts such as accrued revenues, accrued expenses, prepaid expenses, and unearned revenues may appear to reflect the true financial position at the end of an accounting period. Closing entries typically involve revenue accounts, expense accounts, and the Income Summary account to transfer balances to retained earnings. Reversing entries usually affect accruals, such as accrued revenues or expenses, to simplify the recording of transactions in the new period. These entries ensure that financial statements accurately reflect the company's financial performance and position.
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.
The entry to close the appropriate insurance account at the end of the accounting period is what?
Insurance account is expense account and expense account is closed in income summary account. Insurance account should be credited where as income summary account should be debited
The entry to close the appropriate insurance account at the end of the accounting period isWhat?
debit Income Summary; credit Insurance Expense
