$18.$ Which answer would represent the proper closing out of

profit or loss for the period?

a$.$ debit income summary for $$11,600$

b$.$ debit capital for $$11,600$

c$.$ credit income summary for $$12,300$

d$.$ credit capital $$12,300$

$19.$ Which answer would represent the proper entry for

closing out the withdrawals?

a$.$ debit withdrawals for $$4,800$

b$.$ debit capital for $$4,800$

c$.$ credit income summary for $$4,800$

d$.$ none of the above are correct

$20.$ After recording the proper closing entries what is the

Capital account balance at the end of the period?

a$.$ $$20,725$

b$.$ $$13,925$

c$.$ $$20,600$

d$.$ $$15,500$

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$21.$ Murphy Company prepaid $$9,600$ on October $1,2018$ for a one$-$year insurance premium. Coverage begins

October $1.$ On January $1,2019($after December $31$ adjustments$),$ the Prepaid Insurance account will have a

debit balance of $\_\_\_\_\_\_\_\_.($Round any intermediate calculations to two decimal places, and your final answer

to the nearest whole number.$)$

A$)$ $$8,000$

B$)$ $$10,400$

C$)$ $$9,600$

D$)$ $$7,200$

$22.$ Improvements, a home improvement magazine, collected $$1,920,000$ in subscription revenue on June $30.$ Each

subscriber will receive an issue of the magazine in each of the next $12$ months, beginning with the July issue.

The company uses the accrual method of accounting. What is the amount of Subscription Revenue that has

been earned by the end of December? $($Round any intermediate calculations to two decimal places, and your

final answer to the nearest whole number.$)$

A$)$ $$800,000$

B$)$ $$1,120,000$

C$)$ $$1,920,000$

D$)$ $$960,000$

$23.$ Adkins Company is hired on December $15,2018$ to perform services, beginning on December $16,2018.$ Under

this agreement, Adkins will earn $$4,500$ monthly and receive payment on January $15,2019.$ What amount of

service revenue should be recorded for the year ending December $31,2018?$

A$)0$

B$)$ $$2,250$

C$)$ $$4,500$

D$)$ There is not enough information to answer this.

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$24.$ Regarding a classified balance sheet, which of the following statements is correct?

A$)$ Accounts are classified by their purchase dates.

B$)$ Account balances are listed from the highest amount to the lowest amount.

C$)$ Assets are listed in the order of their liquidity.

D$)$ Assets are listed in alphabetical order.

$25.$ An account that is not closed at the end of the period is called a$($n$)\_\_\_\_\_\_\_\_.$

A$)$ expense account

B$)$ temporary account

C$)$ permanent account

D$)$ revenue account

$26$ Revenues and expenses may be transferred to the $\_\_\_\_\_\_\_\_$ account before their final transfer into the Owner,

Capital account.

A$)$ Net Income

B$)$ Income Summary

C$)$ Owner, Withdrawals

D$)$ Assets

$27.$ 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

$28.$ Which of the following accounts will be closed by debiting the Income Summary account?

A$)$ Owner, Capital

B$)$ Service Revenue

C$)$ Accounts Receivable

D$)$ Salaries Expense

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$29.$ Which of the following entries would be made to record the purchase of inventory on account, if a company

uses the perpetual inventory system?

A$)$ a debit to Purchases and a credit to Accounts Payable

B$)$ a debit to Accounts Payable and a credit to Purchases

C$)$ a debit to Merchandise Inventory and a credit to Accounts Payable

D$)$ a debit to Accounts Payable and a credit to Merchandise Inventory

$30.$ Under which of the following terms will the buyer be required to pay transportation costs?

A$)$ FOB destination

B$)$ FOB shipping point

C$)$ freight out

D$)$ delivery expense

$31.$Robin Company uses a periodic inventory system. Use the following details to calculate the cost of goods sold.

Beginning merchandise inventory $$2,000$

Ending merchandise inventory $2,300$

Purchases $22,000$

Purchase Discounts $700$

Purchase Returns and Allowances $1,500$

Freight In $4,200$

A$)$ $$24,200$

B$)$ $$19,800$

C$)$ $$23,700$

D$)$ $$26,000$

$32.$ A merchandiser purchased inventory on account for $$10,000.$ In a periodic inventory system, the journal entry

to record the purchase would include $\_\_\_\_\_\_\_\_.$

A$)$ a debit to Purchases for $$10,000$ and a credit to Accounts Payable for $$10,000$

B$)$ a debit to Accounts Payable for $$10,000$ and a credit to Purchases for $$10,000$

C$)$ a debit to Merchandise Inventory for $$10,000$ and a credit to Accounts Payable for $$10,000$

D$)$ a debit to Accounts Payable for $$10,000$ and a credit to Merchandise

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