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Determining Accounts Affected by Closing Entries The following list contains some of the
Chapter 10, Problem 10-3(choose chapter or problem)
Determining Accounts Affected by Closing Entries
The following list contains some of the accounts used by Living Well Health Spa.
Instructions Using the form in your working papers:
1. In the first column, indicate the financial statement where each account appears: balance sheet or income statement.
2. In the next column, indicate whether or not the account is affected by a closing entry.
3. In the last column, indicate whether or not the account appears on the post-closing trial balance.
The first account is shown as an example.
Questions & Answers
QUESTION:
Determining Accounts Affected by Closing Entries
The following list contains some of the accounts used by Living Well Health Spa.
Instructions Using the form in your working papers:
1. In the first column, indicate the financial statement where each account appears: balance sheet or income statement.
2. In the next column, indicate whether or not the account is affected by a closing entry.
3. In the last column, indicate whether or not the account appears on the post-closing trial balance.
The first account is shown as an example.
ANSWER:
Problem 10.3
Determining Accounts Affected by Closing Entries
The following list contains some of the accounts used by Living Well Health Spa.
Instructions. Using the form in your working papers:
1. In the first column, indicate the financial statement where each account appears: balance sheet or income statement.
2. In the next column, indicate whether or not the account is affected by a closing entry.
3. In the last column, indicate whether or not the account appears on the post-closing trial balance.
The first account is shown as an example.
Step by Step Solution
Step 1 of 2
Closing entries are those which help to show the financial position of a company. They’re prepared by closing all the general ledger accounts and reflecting the balances for each account after making necessary adjustments.