3) The following is the adjusted trial balance from the worksheet for Tuttle Photography.
Tuttle Photography
Worksheet
For the Year Ended December 31, 2013
Accounts Debit Credit
Cash $15,000
Accounts receivable 30,000
Prepaid insurance 7,500
Office supplies 3,200
Land 40,000
Building 160,000
Accumulated depreciation $12,000
Equipment 75,000
Accumulated depreciation 8,500
Accounts payable 12,000
Salaries payable 2,000
Unearned service revenue 25,000
Mortgage payable 100,000
R. Tuttle, capital 21,290
R. Tuttle, drawing 23,000
Service revenue 289,000
Salaries expense 61,000
Depreciation expense 6,150
Supplies expense 14,040
Insurance expense 14,000
Utilities expense 20,900
$469,790 $469,790
Using the information from the worksheet above, prepare a balance sheet for Tuttle Photography.
4) Using the following worksheet for the Alcazar Service Co., please prepare an income statement. The data are for
the year ended December 31, 2012.
5) Using the following worksheet for Alcazar Service Co., please prepare a statement of owner’s equity. The
data are for the year ended December 31, 2012.
6) Using the following worksheet for Alcazar Service Co., please prepare a statement of owner’s equity. The
data are for the year ended December 31, 2012.
Learning Objective 4-3
1) The adjusting process zeroes out all revenues and all expenses.
2) Permanent accounts are NOT closed at the end of the period.
3) As part of the closing process, revenues and expenses are closed to a temporary account called Net income (loss).
4) The last step in the closing process is to credit the Drawing account and debit the Capital account.
5) Revenue accounts and expense accounts are closed to the Capital account.
6) Revenue accounts and expense accounts are closed to the Income summary account.
7) Asset and liability accounts are closed to the Income summary account.
8) Beginning balance in Capital is $10,000. Revenues are $200,000. Expenses are $120,000. Withdrawals are
$4,000. The ending balance in Capital is $86,000.
9) Beginning balance in Capital is $10,000. Revenues are $200,000. Expenses are $120,000. Withdrawals are
$4,000. The ending balance in Capital is $90,000.
10) Beginning balance in Capital is $80,000. Revenues are $60,000. Expenses are $75,000. No withdrawals were
taken. The ending balance in Capital is $65,000.
11) Beginning balance in Capital is $80,000. Revenues are $60,000. Expenses are $75,000. No withdrawals were
taken. The ending balance in Capital is $95,000.
12) Cash is a temporary account.
13) Accounts receivable is a permanent account.
14) Supplies is a temporary account.
15) Supplies expense is a temporary account.
16) Accounts payable is a temporary account.
17) Salaries payable is a permanent account.
18) Capital is a temporary account.
19) Accumulated depreciation is a permanent account.
20) Service revenue is a temporary account.
21) Depreciation expense is a temporary account.
22) Service revenue is a permanent account.
23) Salary expense is a temporary account.
24) Withdrawals is a permanent account.
25) Capital is a permanent account.
26) Where can closing entries be found?
A) In a company‘s general journal
B) On a company’s statement of owner’s equity
C) On a company’s worksheet
D) On a company’s balance sheet
27) Which of the following entries will be necessary to close the appropriate depreciation account at the end of the
year?
A) Debit Accumulated depreciation and credit Income summary.
B) Debit Depreciation expense and credit Income summary.
C) Debit Income summary and credit Accumulated depreciation.
D) Debit Income summary and credit Depreciation expense.
28) Which of the following accounts does NOT close at the end of the period?
A) Accumulated depreciation
B) Depreciation expense
C) Withdrawals
D) Sales revenues
29) Which is NOT an example of a temporary account?
A) Wages expense
B) Accumulated depreciation
C) Service revenue
D) Utilities expense
30) Which of the following accounts will be closed by debiting the Income summary account?
A) Depreciation expense
B) Accounts payable
C) Service revenue
D) Accumulated depreciation
31) Which of the following accounts will be closed by crediting the Income summary account?
A) Service revenue
B) Depreciation expense
C) Accounts payable
D) Accumulated depreciation
32) Which of the following accounts will be closed by debiting the Income summary account?
A) Withdrawals
B) Service revenue
C) Accounts receivable
D) Salary expense
33) Revenues total $10,200. Expenses total $7,300. Withdrawals total $2,600. What is the balance in the Income
summary account prior to closing Net income or loss to the Capital account?
A) Credit balance of $300
B) Debit balance of $2,900
C) Credit balance of $2,900
D) Balance of $0
34) Revenues total $10,200. Expenses total $7,300. Withdrawals total $2,600. What is the balance in the Income
summary account after closing Net income or loss to the Capital account?
A) Debit balance of $2,900
B) Credit balance of $300
C) Credit balance of $2,900
D) Balance of $0
35) Which of the following accounts are temporary accounts that must be closed at the end of the year?
A) Assets, liabilities and withdrawals
B) Revenues, expenses and withdrawals
C) Assets, liabilities and capital
D) Revenues, expenses and capital
36) To what account is the balance in the Income summary account closed?
A) The Withdrawal account
B) The Net Income account
C) The Capital account
D) The Revenue account
37) Which of the following accounts will still show a balance after the closing process is completed?
A) Withdrawal account
B) Expense accounts
C) Accumulated depreciation account
D) Service revenue account
38) What is the result if the amount of net income for the year is less than the amount of the withdrawals?
A) The Capital account increases.
B) The amount in the Cash account decreases.
C) The amount in the Cash account increases.
D) The Capital account decreases.
39) Which account has a balance equal to net income immediately before it is closed?
A) The Income summary account
B) The Drawing account
C) The Net Income account
D) The Capital account
40) Net income for the year is $25,000. Withdrawals of $36,000 per were taken at the end of the year. Which of the
following occurs?
A) The Capital account decreases by $22,000.
B) The Capital account decreases by $11,000.
C) The Capital account increases by $11,000.
D) The Capital account increases by $22,000.
41) Which of the following entries will be necessary to close the insurance expense account at the end of the year?
A) Debit Insurance expense and credit Income summary.
B) Debit Insurance expense and credit Capital.
C) Debit Capital and credit Insurance expense.
D) Debit Income summary and credit Insurance expense.
42) The following is the adjusted trial balance for Tuttle Photography.
Accounts Debit Credit
Cash $15,000
Accounts receivable 30,000
Prepaid insurance 7,500
Office supplies 3,200
Land 40,000
Building 160,000
Accumulated depreciation $12,000
Equipment 75,000
Accumulated depreciation 8,500
Accounts payable 12,000
Salaries payable 2,000
Unearned service revenue 25,000
Mortgage payable 100,000
R. Tuttle, capital 21,290
R. Tuttle, drawing 23,000
Service revenue 289,000
Salaries expense 61,000
Depreciation expense 6,150
Supplies expense 14,040
Insurance expense 14,000
Utilities expense 20,900
$469,790 $469,790
After the closing entries, what will the final balance in Capital be?
A) $207,200
B) $184,200
C) $416,380
D) $171,200
43) Please refer to the following adjusted trial balance. What will the final ending balance in the Capital account be
after posting the closing entries?
Accounts Debit Credit
Cash $1,700
Accounts receivable 8,500
Supplies 100
Equipment 7,500
Accumulated depreciation $2,000
Accounts payable 1,200
Salary payable 800
Unearned revenue 600
Capital 3,400
Drawing 2,300
Service revenue 40,000
Salary expense 24,000
Supplies expense 2,300
Depreciation expense 1,600
$48,000 $48,000
A) $13,200
B) $14,500
C) $16,800
D) $10,200
44) The following is the adjusted trial balance for Tuttle Photography.
Accounts Debit Credit
Cash $15,000
Accounts receivable 30,000
Prepaid insurance 7,500
Office supplies 3,200
Land 40,000
Building 160,000
Accumulated depreciation $12,000
Equipment 75,000
Accumulated depreciation 8,500
Accounts payable 12,000
Salaries payable 2,000
Unearned service revenue 25,000
Mortgage payable 100,000
R. Tuttle, capital 21,290
R. Tuttle, drawing 23,000
Service revenue 289,000
Salaries expense 61,000
Depreciation expense 6,150
Supplies expense 14,040
Insurance expense 14,000
Utilities expense 20,900
$469,790 $469,790
Using the information from the worksheet above, prepare the closing entry for Revenues.
45) The following is the adjusted trial balance for Tuttle Photography.
Accounts Debit Credit
Cash $15,000
Accounts receivable 30,000
Prepaid insurance 7,500
Office supplies 3,200
Land 40,000
Building 160,000
Accumulated depreciation $12,000
Equipment 75,000
Accumulated depreciation 8,500
Accounts payable 12,000
Salaries payable 2,000
Unearned service revenue 25,000
Mortgage payable 100,000
R. Tuttle, capital 21,290
R. Tuttle, drawing 23,000
Service revenue 289,000
Salaries expense 61,000
Depreciation expense 6,150
Supplies expense 14,040
Insurance expense 14,000
Utilities expense 20,900
$469,790 $469,790
Using the information from the worksheet above, prepare the closing entry for Expenses.
46) The following is the adjusted trial balance for Tuttle Photography.
Accounts Debit Credit
Cash $15,000
Accounts receivable 30,000
Prepaid insurance 7,500
Office supplies 3,200
Land 40,000
Building 160,000
Accumulated depreciation $12,000
Equipment 75,000
Accumulated depreciation 8,500
Accounts payable 12,000
Salaries payable 2,000
Unearned service revenue 25,000
Mortgage payable 100,000
R. Tuttle, capital 21,290
R. Tuttle, drawing 23,000
Service revenue 289,000
Salaries expense 61,000
Depreciation expense 6,150
Supplies expense 14,040
Insurance expense 14,000
Utilities expense 20,900
$469,790 $469,790
Using the information from the worksheet above, prepare the closing entry for the Income summary account.
47) The following is the adjusted trial balance for Tuttle Photography.
Accounts Debit Credit
Cash $15,000
Accounts receivable 30,000
Prepaid insurance 7,500
Office supplies 3,200
Land 40,000
Building 160,000
Accumulated depreciation $12,000
Equipment 75,000
Accumulated depreciation 8,500
Accounts payable 12,000
Salaries payable 2,000
Unearned service revenue 25,000
Mortgage payable 100,000
R. Tuttle, capital 21,290
R. Tuttle, drawing 23,000
Service revenue 289,000
Salaries expense 61,000
Depreciation expense 6,150
Supplies expense 14,040
Insurance expense 14,000
Utilities expense 20,900
$469,790 $469,79
Using the information from the worksheet above, prepare the closing entry for Drawing.
48) The following is the adjusted trial balance for Tuttle Photography.
Account Debit Credit
Cash $1,700
Accounts receivable 8,500
Supplies 100
Equipment 7,500
Accumulated depreciation $2,000
Accounts payable 1,200
Salary payable 800
Unearned revenue 600
Capital 3,400
Drawing 2,300
Service revenue 40,000
Salary expense 24,000
Supplies expense 2,300
Depreciation expense 1,600
$48,000 $48,000
Using the information from the worksheet above, prepare the closing entry for Revenues.