Question

Adjusting entries are prepared yearly. (T/F)

Closing entries are prepared monthly. (T/F)

It is not really necessary to do a post closing trial balance because it's the end of the year. (T/F)

Adjusting entries record transactions. (T/F)

Beginning capital is $10,000. Net loss of $2,000. Withdrew $1,000. Balance of the owner's capital account on the post closing trial balance would be $10,000. (T/F)

Answer 1

i) Answer: False

Explanation:

In any organization or a company the adjusting entries are prepared when they required either monthly, quarterly or yearly. So the given statement adjusting entries prepared yearly is false.

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ii) Answer: False

Explanation:

In any organization or a company the Closing entries are prepared when they required either monthly, quarterly or yearly. So the given statement Closing entries prepared monthly is false.

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iii) Answer : False

Explanation:

In any organization must prepared post closing trial balance, because of closing entries we closed only revenues, expenses , net income and dividends. In post closing trial balance record the assets and liabilities, so the post closing trial balance is required.

Thus, given statement is false.

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iv) Answer : False

Explanation:

Adjusting entries are not a record transactions. In any organization or a company adjusting entries are recorded when they need to adjust the previously recorded transaction those which are omitted transactions.

Thus, given statement is false.

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v) Answer : false

Calculation:

Owners' Capital
Beginning capital	$ 10,000
Less: Net loss	$ 2,000
Less: Withdrew	$ 1,000
Owner's capital ending balance	$ 7,000

The balance of owners' equity in post-closing trial balance is $7,000

Thus, given statement is false.