1. Describe the process of closing the accounts and why we close the accounts at the...

1. Describe the process of closing the accounts and why we close the accounts at the end of the year.

2. If management gets a bonus based on the Profit of the company, describe in your own words how management could change the net income using an estimate. Give a clear example.

3. If you were starting a restaurant, would you choose to start as a proprietorship, partnership, or corporation. Give a full analysis of your reasons.

Solutions

Expert Solution

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

What is the purpose of closing a project and discuss why we "close" projects that have...

What is the purpose of closing a project and discuss why we "close" projects that have failed? What role does the Project Management Office (PMO) play in the Closing process?

1.Why do we close the books? 2.Why do we need to zero out some accounts? 3.How...

1.Why do we close the books? 2.Why do we need to zero out some accounts? 3.How do we decide which accounts to close and which to not zero out?

Closing Entries On July 31, the close of the fiscal year, the balances of the accounts...

Closing Entries On July 31, the close of the fiscal year, the balances of the accounts appearing in the ledger of Serbian Interiors Company, a furniture wholesaler, are as follows: Accumulated Depreciation—Building $365,000 Inventory $115,000 Administrative Expenses 440,000 Notes Payable 100,000 Building 810,000 Retained Earnings 455,000 Cash 78,000 Sales 1,437,000 Common Stock 75,000 Sales Tax Payable 4,500 Cost of Goods Sold 775,000 Selling Expenses 160,000 Dividends 15,000 Store Supplies 16,000 Interest Expense 6,000...

Why are closing entries important to the closing process?

Briefly discuss the purpose for the closing process and describe the four closing entries that are...

Briefly discuss the purpose for the closing process and describe the four closing entries that are required to be made in that process. Also, discuss the difference between a temporary and a permanent account.

Explain the process of closing the books and describe the content and purpose of a post-closing...

Explain the process of closing the books and describe the content and purpose of a post-closing trial balance. Answer in our own words and must be at least 200 words.

Prepare Closing Entries Using the Income Summary Account. Close the temporary accounts to income summary. The...

Prepare Closing Entries Using the Income Summary Account. Close the temporary accounts to income summary. The balance of $8,500 in the retained earnings account is from the beginning of the year. What is the ending retained earnings balance after the closing entries? Company Income Statement for the year ending December 31 Debit Credit Retained Earnings 8,500 Dividends 2,000 Sales 20,000 Cost of Goods Sold 8,000 Selling and Administrative Expenses 3,000 Interest Expense 1,500 Total Expenses 14,500 28,500 Net Income/Loss 14,000

I am trying to Journalize the entries to close the accounts. We are dealing with a...

I am trying to Journalize the entries to close the accounts. We are dealing with a 7100 net loss. I know I need to debit Income Summary and credit retained earnings. I just can't figure out the amount. Retained earnings were 643600, and with a net loss of 7100, so I thought you would debit Income summary 636500 and credit Retained Earnings for the same, but that amount is not correct any assistance would be great. "Referring back to my...

1. The fourth step in the closing procedure is to close the Income Summary account into...

1. The fourth step in the closing procedure is to close the Income Summary account into the Capital account False True 2. The post-closing trial balance will include a) Rent Expense. b) Income from Services. c) Depreciation Expense. d) Accumulated Depreciation. e) Drawing. 3. The entry to close Income Summary, assuming a net loss, would involve a a) credit to Income Summary. b) debit to net income. c) credit to capital. d) credit to cash.

For this week's assignment please share with the class: 1. Why is closing process needed in...

For this week's assignment please share with the class: 1. Why is closing process needed in the accounting cycle? 2. Your understanding of the Income Summary account? 3. What happens to the Retained Earnings account in the closing process? 4. Your strategy for learning the closing process.

Subjects