Untitled

Closing Entries & Temporary Accounts

1. Put a "T" beside it if the account is a temporary account and a "P" if it is a permanent account.
___	Cash	___	Notes Receivable	___	Capital
___	Withdrawals	___	Delivery Earnings	___	Supplies
___	Supplies Expense	___	Accounts Receivable	___	Wages Expense
___	Equipment	___	Income Summary	___	Rent Expense
___	Notes Payable	___	Accum.Deprec.-Equip.	___	FICA Taxes Exp.
___	Fees Earned	___	Deprec.Exp.-Equip.	___	Prepaid Insurance

2. Put a "C" beside it if the account should be closed or an "N" if it should not be closed:

___ Cash ___ Prepaid Rent ___ Capital

___ Fares Earned ___ Rent Expense ___ Income Summary

___ Drawing ___ Consultation Fees ___ Wages Expense

___ Accounts Receivable ___ Accounts Payable ___ Supplies

___ Supplies Expense ___ Accum.Deprec.-Building ___ Building

___ Notes Payable ___ Interest Income ___ Fees Earned

3. Place in the proper order the four steps in the closing process. Notice that some are fictitious steps, pick the 4 correct ones.
	A..close all Expenses to Income Summary
	B..close Withdrawals to Capital
	C..close Assets to Capital
	D..close Income Summary to Capital
	E..close Liabilities to Capital
	F..close all Revenues to Income Summary
	G..close Capital to Income Summary
		____	Step #1	____	Step #3
		____	Step #2	____	Step #4

4. Put an "X" beside the accounts that should be in a Post-Closing Trial Balance:
___	Cash	___	Supplies Expense	___	Accounts Receivable
___	Fares Earned	___	Capital	___	Drawing
___	Rent Expense	___	Notes Payable	___	FICA Taxes Expense
___	Equipment	___	Accum.Deprec.-Equip.	___	FICA Taxes Payable
___	Fees Earned	___	Deprec.Exp.-Equip.	___	Income Summary

[Answer Key]

1. Put a "T" beside it if the account is a temporary account and a "P" if it is a permanent account.
P	Cash	P	Notes Receivable	P	Capital
T	Withdrawals	T	Delivery Earnings	P	Supplies
T	Supplies Expense	P	Accounts Receivable	T	Wages Expense
P	Equipment	T	Income Summary	T	Rent Expense
P	Notes Payable	P	Accum.Deprec.-Equip.	T	FICA Taxes Exp.
T	Fees Earned	T	Deprec.Exp.-Equip.	P	Prepaid Insurance

2. Put a "C" beside it if the account should be closed or an "N" if it should not be closed:

N Cash N Prepaid Rent N Capital

C Fares Earned C Rent Expense C Income Summary

C Drawing C Consultation Fees C Wages Expense

N Accounts Receivable N Accounts Payable N Supplies

C Supplies Expense N Accum.Deprec.-Building N Building

N Notes Payable C Interest Income C Fees Earned

3. Place in the proper order the four steps in the closing process. Notice that some are fictitious steps, pick the 4 correct ones.

A..close all Expenses to Income Summary

B..close Withdrawals to Capital

C..close Assets to Capital

D..close Income Summary to Capital

E..close Liabilities to Capital

F..close all Revenues to Income Summary

G..close Capital to Income Summary

F Step #1 D Step #3

A Step #2 B Step #4

4. Put an "X" beside the accounts that should be in a Post-Closing Trial Balance:

X Cash ___ Supplies Expense X Accounts Receivable

___ Fares Earned X Capital ___ Drawing

___ Rent Expense X Notes Payable ___ FICA Taxes Expense

X Equipment X Accum.Deprec.-Equip. X FICA Taxes Payable

___ Fees Earned ___ Deprec.Exp.-Equip. ___ Income Summary

2. Put a "C" beside it if the account should be closed or an "N" if it should not be closed:
___	Cash	___	Prepaid Rent	___	Capital
___	Fares Earned	___	Rent Expense	___	Income Summary
___	Drawing	___	Consultation Fees	___	Wages Expense
___	Accounts Receivable	___	Accounts Payable	___	Supplies
___	Supplies Expense	___	Accum.Deprec.-Building	___	Building
___	Notes Payable	___	Interest Income	___	Fees Earned