Which account will have a zero balance after closing entries?

Which account will have a zero balance after closing entries?

An account that will have a zero balance after closing entries have been journalized and posted is: Service Revenue. When a net loss has occurred, Income Summary is: credited and Retained Earnings is debited.

What type of accounts are zeroed during the closing process?

Temporary accounts: revenues, expenses, and withdrawals accounts. These account balances do not roll over into the next period after closing. The closing process reduces revenue, expense, and withdrawals account balances (temporary accounts) to zero so they are ready to accumulate data for the next accounting period.

Which of the following accounts would have balances on a post-closing trial balance?

The correct answer is Option A- Owner’s capital The owner’s capital account appears post-closing trial balance as it is prepared after all the closing entries, debit and credit entries are made and adjusted. Post-closing trial balance only contains real accounts.

What happens after closing entries are prepared and posted?

Posting closing entries: Once all closing entries are complete, the information is transferred to the general ledger T-accounts. Balances in temporary accounts will show a zero balance.

Which account will not have a zero balance?

Temporary accounts: revenues, expenses, and withdrawals accounts. These account balances do not roll over into the next period after closing. The closing process reduces revenue, expense, and withdrawals account balances (temporary accounts) to zero so they are ready to accumulate data for the next accounting period.

What accounts are included in the balance list after closing?

Permanent (real) accounts are accounts that transfer balances to the next period and include balance sheet accounts, such as assets, liabilities, and stockholders’ equity. These accounts will not be set back to zero at the beginning of the next period; they will keep their balances.

Which account will have a zero balance after closing?

An account that will have a zero balance after closing entries have been journalized and posted is: Service Revenue.

What account is used only during the closing process?

The income summary account is an account used only during the closing process. The income summary account appears on the income statement at the end of the accounting period.

Which type of account is closed first in the closing process?

Income Summary is a temporary account used during the closing process. First, the balances in all the revenue accounts are transferred to Income Summary. Close expense accounts to Income Summary. After expenses are closed to Income Summary, the balance in that account is net income for the period.

What type of accounts do not close?

Include asset, liability, and equity accounts. Don’t close at the end of an accounting period.

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