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Identifying Accounts for Closing Entries A partial list of the accounts used by Cycle
Chapter 20, Problem 20-6(choose chapter or problem)
Identifying Accounts for Closing Entries
A partial list of the accounts used by Cycle Tech Bicycles appears on page 606. All of the accounts have nonzero balances.
Instructions In your working papers, list all account numbers and names for accounts that will be debited when closed. Next, list all account numbers and names for accounts that will be credited when closed.
Analyze Examine your list. Determine whether it contains all of the accounts. If it does not, explain why.
Questions & Answers
QUESTION:
Identifying Accounts for Closing Entries
A partial list of the accounts used by Cycle Tech Bicycles appears on page 606. All of the accounts have nonzero balances.
Instructions In your working papers, list all account numbers and names for accounts that will be debited when closed. Next, list all account numbers and names for accounts that will be credited when closed.
Analyze Examine your list. Determine whether it contains all of the accounts. If it does not, explain why.
ANSWER:Step 1 of 3
Permanent accounts are those which are not closed during year-end. These accounts are recorded in the balance sheet of the business entity.