89) In the first space below, indicate whether each account is a real or nominal account using (R) Real
Account and (N) Nominal Account. In the second space below, indicate by an (X) if the account should be
closed.
N X 0. Advertising Expense
________ ________ 1. Cash
________ ________ 2. Tennis Fees Earned
________ ________ 3. Accounts Receivable
________ ________ 4. Accumulated Depreciation
________ ________ 5. Withdrawals
________ ________ 6. Prepaid Rent Expense
________ ________ 7. Income Summary
________ ________ 8. Utilities Expense
90) From the following items in the income statement columns of the worksheet of Brandy’s Tutoring at
December 31, prepare the closing entries without explanation, assuming that a $2,000 withdrawal was
made during the period.
Income Statement
Account Debit Credit
Tutoring Fees Earned 4,450
Wages Expense 700
Rent Expense 600
Supplies Expense 450
Insurance Expense 250 _____
2,000 4,450
Net Income 2,450 _____
$4,450 $4,450
91) From the following items in the income statement columns of the worksheet of Monaghan Company
at December 31, prepare the closing entries without explanation, assuming that a $500 withdrawal was
made during the period.
Income Statement
Account Debit Credit
Service Revenue Earned 900
Wages Expense 550
Rent Expense 250
Supplies Expense 100
Insurance Expense 50 ____
950 900
Net Loss ____ 50
$950 $950
92) A summary of selected ledger accounts appears below for S. Ball for the current calendar year.
Answer the following questions.
1. What was the total amount of withdrawals for the year?
2. What was the net income?
3. What was the total revenue?
4. What were the total expenses?
93) On the basis of the following data taken from the adjusted trial balance columns of the worksheet for
the year ended December 31 for Painting the Perfect Picture, journalize the four closing entries in the
proper order.
Account Debit Credit
Cash 20,000
Accounts Receivable 67,000
Supplies 7,000
Equipment 200,000
Accumulated Depreciation 70,000
Accounts Payable 30,000
Capital 200,250
Withdrawals 25,000
Fees Earned 100,000
Salary Expense 27,000
Rent Expense 17,500
Depreciation Expense 20,000
Supplies Expense 12,500
Miscellaneous Expense __4,250 ______
Total 400,250 400,250
94) What are the major goals of the closing process?
5.3 Learning Objective 5-3
1) The final step in the accounting cycle is:
A) preparing the post-closing trial balance.
B) preparing the financial statements.
C) posting the closing entries.
D) posting the adjusting entries.
2) Which of the following sequence of actions describes the proper order in the accounting cycle?
A) Journalize, post, close, prepare financial statements, adjust, and analyze transactions
B) Prepare financial statements, journalize, post, adjust, analyze transactions, close
C) Analyze transactions, journalize, post, adjust, prepare financial statements, close
D) Post, close, prepare financial statements, adjust, analyze transactions, and journalize
3) In the normal accounting cycle, the:
A) financial statements are prepared after the adjusting entries are posted.
B) financial statements are prepared before the adjusting entries are posted.
C) adjusting and closing entries are journalized before the financial statements are prepared.
D) post-closing trial balance is prepared before the closing entries are posted.
4) Of the following accounts, which might appear in the adjusted trial balance, but not in the post-closing
trial balance?
A) Salary Expense
B) Owner’s Capital
C) Accounts Payable
D) Income Summary
5) Which of the following accounts would appear on the post-closing trial balance?
A) Fees Earned
B) Rent Expense
C) Accounts Receivable
D) Withdrawals
6) After closing the revenue and expense accounts, Income Summary showed a debit balance of $1,900.
Which of the following statements is true?
A) The company had a net loss of $1,900.
B) The company had a net income of $1,900.
C) The company’s cash increased $1,900.
D) The Capital account increased $1,900.
7) The trial balance prepared after all of the temporary accounts have been closed is called a post-closing
trial balance.
8) The Income Summary account can be found on the worksheet.
9) The post-closing trial balance contains the beginning figure for Capital.
10) The post-closing trial balance is used to determine if the ledger is in balance after posting adjustments.
11) All closing entries must be posted after preparing the post-closing trial balance.
12) From the following accounts, prepare in proper form a post–closing trial balance for Jones’ Pet Sitting
on December 31. (Note: These balances are before closing).
Jones, Capital $7,500
Cash 3,750
Accumulated Depreciation 1,500
Equipment 5,000
Accounts Payable 1,900
Jones, Withdrawals 1,000
Wages Expense 1,250
Supplies Expense 1,775
Accounts Receivable 3,125
Personal Trainer Fees 5,000
13) From the following accounts, prepare in proper form a post–closing trial balance for Matison
Company on December 31.
Accounts Receivable $4,600
Accounts Payable 1,290
Cash 6,450
Salaries Payable 1,660
Supplies 500
Prepaid Insurance 1,200
Matison, Capital 9,800