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94)
Which of the following errors would cause the Balance Sheet and Statement of Owner's Equity
columns of a work sheet to be out of balance?
A)
Entering a liability amount in the Income Statement Credit column.
B)
Entering an expense amount in the Balance Sheet and Statement of Owner's Equity Debit
column.
C)
Entering a liability amount in the Balance Sheet and Statement of Owner's Equity Credit
column.
D)
Entering a revenue amount in the Balance Sheet and Statement of Owner's Equity Debit
column.
E)
Entering an asset amount in the Income Statement Debit column.
95)
The Unadjusted Trial Balance columns of a work sheet total $84,000. The Adjustments columns
contain entries for the following:
Office supplies used during the period, $1,200.
Expiration of prepaid rent, $700.
Accrued salaries expense, $500.
Depreciation expense, $800.
Accrued service fees receivable, $400.
The Adjusted Trial Balance columns total is:
A) $87,600 B) $84,000 C) $80,400. D) $85,700 E) $85,900
96)
The balances in the unadjusted columns of a work sheet will agree with:
A)
whatever balances management has decided to report.
B)
the balances reflected in the company's unadjusted trial balance.
C)
the balances in the company's post-closing trial balance.
D)
the balances reflected in the company's financial statements.
E)
the balances management budgeted for the accounting period.
97)
In the process of completing a work sheet, the accountant determines that the Income Statement
debit column totals $83,000, while the Income Statement credit column totals $65,000. To enter
net income (or net loss) for the period into the work sheet would require an entry to
A)
it is not practical to enter Net Income (or Net Loss) on the work sheet.
B)
the Balance Sheet & Statement of Owner's Equity debit column and the Income Statement
credit column.
C)
the Adjustments debit column and the Adjustments credit column.
D)
the Unadjusted Trial Balance debit column and the Adjustments credit column.
E)
the Income Statement debit column and the Balance Sheet & Statement of Owner's Equity
credit column.
98)
The special account used only in the closing process to temporarily hold the amounts of revenues
and expenses before the net difference is added to (or subtracted from) the owner's capital account
is the:
A)
Contra account.
B)
Income Summary account.
C)
Nominal account.
D)
Closing account.
E)
Balance column account.
99)
K. Canopy, the proprietor of Canopy Services, withdrew $5,700 from the business during the
current year. The entry to close the withdrawals account at the end of the year is:
A)
Debit K. Canopy, Capital $5,700, credit Salary Expense $5,700
B)
Debit K Canopy, Withdrawals $5,700; credit Cash, $5,700
C)
Debit Income Summary $5,700; credit K. Canopy, Capital $5,700
D)
Debit K. Canopy, Capital $5,700; credit K. Canopy, Withdrawals $5,700
E)
Debit K. Canopy, Withdrawals $5,700; credit K. Canopy, Capital $5,700
100)
Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $185,000, expenses of
$103,700, and withdrew $18,000 from the business during the current year. The owner's capital
account before closing had a balance of $297,000. The entry to close the Income Summary account
at the end of the year, after revenue and expense accounts have been closed, is:
A)
Debit T. Westmont, Capital $297,000; credit Income Summary $297,000
B)
Debit Income Summary $63,300; credit T. Westmont, Capital $63,300
C)
Debit T. Westmont, Capital $81,300; credit Income Summary $81,300
D)
Debit T. Westmont, Capital $63,300; credit Income Summary $63,300
E)
Debit Income Summary $81,300, credit T. Westmont, Capital $81,300
101)
Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $185,000, expenses of
$103,700, and withdrew $18,000 from the business during the current year. The owner's capital
account before closing had a balance of $297,000. The Net Income for the year is:
A) $185,000 B) $63,300 C) $360,300 D) $378,300 E) $81,300
102)
Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $185,000, expenses of
$103,700, and withdrew $18,000 from the business during the current year. The owner's capital
account before closing had a balance of $297,000. The ending owner's capital balance after closing
is:
A) $63,300 B) $378,300 C) $81,300 D) $185,000 E) $360,300
Total revenues
0
Total expenses
60,000
Sue Harris, Capital
80,000
Sue Harris, Withdrawals
15,000
103)
A company had revenues of $75,000 and expenses of $62,000 for the accounting period. The
owner withdrew $8,000 in cash during the same period. Which of the following entries could not
be a closing entry?
A)
Debit Income Summary $75,000; credit Revenues $75,000.
B)
Debit Revenues $75,000; credit Income Summary $75,000.
C)
Debit Owner's, Capital $8,000, credit Owner's, Withdrawals $8,000.
D)
Debit Income Summary $62,000, credit Expenses $62,000.
E)
Debit Income Summary $13,000; credit Owner's, Capital $13,000.
104)
The following information is available from the adjusted trial balance of the Harris Vacation Rental
Agency. After closing entries are posted, what will be the balance in the Sue Harris, Capital
account?
$ 125,00
A) $130,000. B) $65,000. C) $80,000. D) $280,000. E) $145,000.
105)
The following information is available for the Higgins Travel Agency. After closing entries are
posted, what will be the balance in the C. Higgins, Capital account?
Net Income $ 42,500
C. Higgins, Capital 130,00
0
C. Higgins, Withdrawals 12,000
A) $99,500. B) $130,000. C) $75,500. D) $184,500. E) $160,500.
106)
The following information is available for the Noir Detective Agency. After closing entries are
posted, what will be the balance in the G. Noir, Capital account?
Net Loss $ 17,600
G. Noir, Capital 289,00
0
G. Noir, Withdrawals 32,000
A) $303,400. B) $289,000. C) $239,400. D) $274,600. E) $257,000.
107)
The F. Mercury, Capital account has a credit balance of $37,000 before closing entries are made. If
total revenues for the period are $55,200, total expenses are $39,800, and withdrawals are $9,000,
what is the ending balance in the F. Mercury, Capital account after all closing entries are made?
A) $28,000. B) $35,400. C) $52,400. D) $37,000. E) $43,400.
108)
The F. Mercury, Capital account has a credit balance of $37,000 before closing entries are made.
Total revenues for the period are $55,200, total expenses are $39,800, and withdrawals are $9,000.
What is the correct closing entry for the revenue accounts?
A)
Debit Revenue accounts $55,200; credit Income Summary $55,200.
B)
Debit Revenue accounts $55,200; credit F. Mercury, Capital $37,000.
C)
Debit Revenue accounts $37,000; credit F. Mercury, Capital $37,000.
D)
Debit Income Summary $55,200; credit Revenue accounts $55,200.
E)
Debit Income Summary $37,000; credit F. Mercury Capital $37,000.
109)
The F. Mercury, Capital account has a credit balance of $37,000 before closing entries are made.
Total revenues for the period are $55,200, total expenses are $39,800, and withdrawals are $9,000.
What is the correct closing entry for the expense accounts?
A)
Debit Expense accounts $39,800; credit Income Summary $39,800.
B)
Debit Expense accounts $37,000; credit F. Mercury, Capital $37,000.
C)
Credit Expense accounts $39,800; debit F. Mercury, Capital $39,800.
D)
Debit Income Summary $39,800; credit F. Mercury Capital $39,800.
E)
Debit Income Summary $39,800; credit Expense accounts $39,800.
110)
The Income Summary account is used to:
A)
Determine the appropriate withdrawal amount.
B)
Adjust and update asset and liability accounts.
C)
Replace the capital account in some businesses.
D)
Replace the income statement under certain circumstances.
E)
Close the revenue and expense accounts.
111)
Jen Rogers withdrew a total of $35,000 from her business during the current year. The entry
needed to close the withdrawals account is:
A)
Debit Jen Rogers, Withdrawals and credit Cash for $35,000.
B)
Debit Jen Rogers, Capital and credit Jen Rogers, Withdrawals for $35,000.
C)
Debit Jen Rogers, Withdrawals and credit Jen Rogers, Capital for $35,000.
D)
Debit Income Summary and credit Cash for $35,000.
E)
Debit Income Summary and credit Jen Rogers, Withdrawals for $35,000.
112)
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 Wilson Peters, Capital in the process of closing the
Income Summary account? (Assume all accounts have normal balances.)
Wilson Peters, Capital $ 7,000
Wilson Peters, Withdrawals 9,600
Revenue 53 29,00
Revenue 29,00
0
Rent expense 3,600
Salaries expense 7,200
Insurance expense 920
Depr. Expense-equipment 500
Accum depr.-equipment 1,500
A)
$7,180 credit.
B)
$16,780 credit.
C) $16,780 debit.
D)
$23,780 credit.
E)
$18,280 credit.
113)
It is obvious that an error occurred in the preparation and/or posting of closing entries if:
A)
only permanent accounts appear on the post-closing trial balance.
B)
all balance sheet accounts have zero balances.
C)
the income summary account is debited for the amount of net income for the period.
D)
the owner's capital account is debited for the amount of the net loss for the period.
E)
all revenue and expense accounts have zero balances.
114)
At the beginning of the year, a company's balance sheet reported the following balances: Total
Assets = $225,000; Total Liabilities = $125,000; and Owner's Capital = $100,000. During the year,
the company reported revenues of $46,000 and expenses of $30,000. In addition, owner's
withdrawals for the year totaled $20,000. Assuming no other changes to owner's capital, the
balance in the owner's capital account at the end of the year would be:
A) $116,000. B) $136,000. C) $96,000. D) $104,000. E) $24,000.
115)
At the beginning of the year, Sigma Company's balance sheet reported Total Assets of $195,000
and Total Liabilities of $75,000. During the year, the company reported total revenues of $226,000
and expenses of $175,000. Also, owner withdrawals during the year totaled $48,000. Assuming no
other changes to owner's capital, the balance in the owner's capital account at the end of the year
would be:
A) $123,000. B) $120,000. C) $78,000. D) $174,000. E) $171,000.
116)
After preparing and posting the closing entries for revenues and expenses, the income summary
account has a debit balance of $33,000. The entry to close the income summary account will be:
A)
Debit Income Summary $33,000; credit Owner Capital $33,000.
B)
Debit Owner Capital $33,000; credit Income Summary $33,000.
C)
Debit Income Summary $33,000; credit Owner Withdrawals $33,000.
D)
Debit Owner Withdrawals $33,000; credit Income Summary $33,000.
E)
Credit Owner Capital $33,000; debit Owner Withdrawals $33,000.
117)
The trial balance prepared after all closing entries have been journalized and posted is called the:
A)
Work sheet.
B)
Adjusted trial balance.
C)
General ledger.
D)
Unadjusted trial balance.
E)
Post-closing trial balance.
118)
Which of the following accounts showing a balance on the post-closing trial balance indicate an
error?
A)
N. Young, Capital.
B)
Depreciation Expense-Office Equipment.
C)
Office Equipment.
D)
Salaries Payable.
E)
Accumulated Depreciation-Office Equipment.
119)
Which of the following accounts showing a balance on the post-closing trial balance indicate an
error?
A)
Accounts Payable.
B)
Prepaid Insurance.
C)
Unearned Revenue.
D)
Land.
E)
S. Stills, Withdrawal.
120)
A post-closing trial balance reports:
A)
Only asset accounts.
B)
All temporary and permanent ledger accounts with balances.
C)
Only revenue and expense accounts.
D)
All permanent ledger accounts with balances.
E)
All nominal ledger accounts with balances.
121)
Which of the following statements is true?
A)
A post-closing trial balance should include only permanent accounts.
B)
Closing entries are only necessary if errors have been made.
C)
By using a work sheet to prepare adjusting entries you need not post these entries to the
ledger accounts.
D)
Owner's capital must be closed each accounting period.
E)
The work sheet can be substituted for preparing financial statements.
