1 - JustAnswer
1. A company shows a $900 balance in Prepaid Insurance in the Unadjusted Trial Balance columns of the work sheet. The Adjustments columns show expired insurance of $200. This adjusting entry results in:
[pic]
|[pic] |$200 decrease in net income. |
|[pic] |An error in the financial statements. |
|[pic] |$200 of prepaid insurance. |
|[pic] |$200 increase in net income. |
|[pic] |$200 difference between the debit and credit columns of the Unadjusted Trial Balance. |
2. At the beginning of 2009, Gamma Company's balance sheet reported Total Assets of $195,000 and Total Liabilities of $75,000. During 2009, the company reported total revenues of $228,000 and expenses of $175,000. Also, owner withdrawals during 2009 totaled $40,000. Assuming no other changes to owner's capital, the balance in the owner's capital account at the end of 2009 would be:
[pic]
|[pic] |$120,000. |
|[pic] |$133,000. |
|[pic] |$215,000. |
|[pic] |$195,000. |
|[pic] |cannot be determined from the information provided. |
3. The Unadjusted Trial Balance columns of a company's worksheet show the balance in the Office Supplies account as $630. The Adjustments columns show that $440 of these supplies were used during the period. The amount shown as Office Supplies in the Balance Sheet columns of the worksheet is:
[pic]
|[pic] |$630 credit. |
|[pic] |$190 credit. |
|[pic] |$630 debit. |
|[pic] |$190 debit. |
|[pic] |$440 debit. |
4. After preparing and posting the closing entries to close revenues (and gains) and expenses (and losses) into the income summary, the income summary account has a debit balance of $33,000. The entry to close the income summary account will include:
[pic]
|[pic] |a credit of $33,000 to owner capital. |
|[pic] |a debit of $33,000 to owner withdrawals. |
|[pic] |a credit of $33,000 to owner withdrawals. |
|[pic] |a debit of $33,000 to income summary. |
|[pic] |a debit of $33,000 to owner capital. |
5. Charles Philip withdrew a total of $30,000 from her business during the current year. The entry needed to close the withdrawals account is:
[pic]
|[pic] |Debit Charles Philip, Capital and credit Charles Philip, Withdrawals for $30,000. |
|[pic] |Debit Charles Philip, Withdrawals and credit Charles Philip, Capital for $30,000. |
|[pic] |Debit Income Summary and credit Cash for $30,000. |
|[pic] |Debit Income Summary and credit Charles Philip, Withdrawals for $30,000. |
|[pic] |Debit Charles Philip, Withdrawals and credit Cash for $30,000. |
6.
|The following information is available for the Travis Travel Agency. After these closing entries what will be the balance in the Jay |
|Travis, Capital account? |
|Total revenues |$130,000 |
|Total expenses |50,000 |
|Jay Travis, Capital |60,000 |
|Jay Travis, Withdrawals |25,000 |
[pic]
|[pic] |$35,000. |
|[pic] |$240,000. |
|[pic] |$265,000. |
|[pic] |$80,000. |
|[pic] |$115,000. |
7. Kinder Morgan withdrew a total of $35,000 from her business during the current year. The entry needed to close the withdrawals account is:
[pic]
|[pic] |Debit Kinder Morgan, Withdrawals and credit Kinder Morgan, Capital for $35,000. |
|[pic] |Debit Income Summary and credit Cash for $35,000. |
|[pic] |Debit Kinder Morgan, Withdrawals and credit Cash for $35,000. |
|[pic] |Debit Kinder Morgan, Capital and credit Kinder Morgan, Withdrawals for $35,000. |
|[pic] |Debit Income Summary and credit Kinder Morgan, Withdrawals for $35,000. |
8. A company's ledger accounts and their end-of-period balances before closing entries are posted are shown below. What amount will be posted to Liba DeBarre, Capital in the process of closing the Income Summary account? (Assume all accounts have normal balances.)
|Liba DeBarre, Capital |$6,000 |
|Liba DeBarre, Withdrawals |9,300 |
|Revenue |34,000 |
|Rent expense |3,800 |
|Salaries expense |7,200 |
|Insurance expense |990 |
|Depr. Expense -equipment |200 |
|Accum depr. -equipment |1,200 |
[pic]
|[pic] |$21,810 debit. |
|[pic] |$21,810 credit. |
|[pic] |$22,310 credit. |
|[pic] |$26,610 credit. |
|[pic] |$18,510 credit. |
9. The J. Godfrey, Capital account has a credit balance of $11,000 before closing entries are made. If total revenues for the period are $57,900, total expenses are $38,000, and withdrawals are $8,000, what is the ending balance in the J. Godfrey, Capital account after all closing entries are made?
[pic]
|[pic] |$22,900. |
|[pic] |$38,000. |
|[pic] |$30,900. |
|[pic] |$8,000. |
|[pic] |$60,900. |
10.
|A company had revenues of $90,000 and expenses of $65,000 for the accounting period. Which of the following entries could not be a closing|
|entry? |
[pic]
|[pic] | |
| |Income Summary |
| |65,000 |
| | |
| | |
| | Expenses |
| | |
| |65,000 |
| | |
| | |
|[pic] |All of these are possible closing entries. |
|[pic] | |
| |Income Summary |
| |90,000 |
| | |
| | |
| | Revenues |
| | |
| |90,000 |
| | |
| | |
|[pic] | |
| |Revenues |
| |90,000 |
| | |
| | |
| | Income Summary |
| | |
| |90,000 |
| | |
|[pic] | |
| |Income Summary |
| |25,000 |
| | |
| | |
| | Owner's Capital |
| | |
| |25,000 |
| | |
| | |
11.
|A company had revenues of $100,000 and expenses of $65,000 for the accounting period. Which of the following entries could not be a |
|closing entry? |
[pic]
|[pic] |All of these are possible closing entries. |
|[pic] | |
| |Revenues |
| |100,000 |
| | |
| | |
| | Income Summary |
| | |
| |100,000 |
| | |
|[pic] | |
| |Income Summary |
| |35,000 |
| | |
| | |
| | Owner's Capital |
| | |
| |35,000 |
| | |
| | |
|[pic] | |
| |Income Summary |
| |100,000 |
| | |
| | |
| | Revenues |
| | |
| |100,000 |
| | |
| | |
|[pic] | |
| |Income Summary |
| |65,000 |
| | |
| | |
| | Expenses |
| | |
| |65,000 |
| | |
| | |
12. J.Ann, the proprietor of Ann Services, withdrew $5,300 from the business during the current year. The entry to close the withdrawals account at the end of the year, is:
[pic]
|[pic] | |
| |Income Summary |
| |5,300 |
| | |
| | |
| | J. Ann, Capital |
| | |
| |5,300 |
| | |
|[pic] | |
| |J. Ann, Capital |
| |5,300 |
| | |
| | |
| | Salary Expense |
| | |
| |5,300 |
| | |
|[pic] | |
| |J. Ann, Withdrawals |
| |5,300 |
| | |
| | |
| | Cash |
| | |
| |5,300 |
| | |
|[pic] | |
| |J. Ann, Capital |
| |5,300 |
| | |
| | |
| | J. Ann, Withdrawals |
| | |
| |5,300 |
| | |
|[pic] | |
| |J. Ann, Withdrawals |
| |5,300 |
| | |
| | |
| | J. Ann, Capital |
| | |
| |5,300 |
| | |
13. The J. Godfrey, Capital account has a credit balance of $19,000 before closing entries are made. If total revenues for the period are $54,700, total expenses are $39,000, and withdrawals are $7,000, what is the ending balance in the J. Godfrey, Capital account after all closing entries are made?
[pic]
|[pic] |$27,700. |
|[pic] |$39,000. |
|[pic] |$34,700. |
|[pic] |$66,700. |
|[pic] |$7,000. |
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