Use the following account balances from the adjusted trial balance of Flora Wholesalers:

Account Debit Balance Credit Balance
Cash $4,200
Accounts receivable $300
Accounts payable $1,100
H. Jones, Capital $4,400
H. Jones, Drawing $900
Fees revenue $13,200
Advertising expense $8,100
Travel expense $4,200
Shipping expense $300
Computer software expense $400

Required:
What accounts of Flora Wholesalers will have the same balance at the beginning of next year as it does presently on the adjusted trial balance?

Answer :

anthougo

Answer:

Flora Wholesalers:

The accounts of Flora Wholesalers that will have the same balance at the beginning of next year as they do presently on the adjusted trial balance are:

Assets:

Cash                             $4,200

Accounts receivable      $300

Liabilities and Equity:

Accounts payable       $1,100

H. Jones, Capital       $4,400

Explanation:

a) Data and Analysis:

Adjusted Trial Balance

Account                Debit Balance    Credit Balance

Cash                             $4,200

Accounts receivable      $300

Accounts payable                                  $1,100

H. Jones, Capital                                  $4,400

H. Jones, Drawing        $900

Fees revenue                                    $13,200

Advertising expense  $8,100

Travel expense         $4,200

Shipping expense       $300

Computer

software expense     $400

Assets:

Cash                             $4,200

Accounts receivable      $300

Liabilities and Equity:

Accounts payable       $1,100

H. Jones, Capital       $4,400

b) The above assets, liabilities, and equity accounts will have the same balances at the beginning of next year as they do presently on the adjusted trial balance.  They are called permanent accounts.  Only the temporary accounts do change their balances from the adjusted trial balances to the opening balances.  The only other account that is not included above is the Retained Earnings.  This account is adjusted with the differences in the temporary accounts.

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