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1. After closing revenue and expense accounts, Income Summary has a credit balance of $20,000. A. The $20,000 represents a net loss for the period.
1. After closing revenue and expense accounts, Income Summary has a credit balance of $20,000.
A. The $20,000 represents a net loss for the period.
B. Cannot answer this question based on the above information.
2. The $20,000 represents a net income for the period.Before any year-end adjustments were made, the net income of Husky Company was $42,000. However, the following unrecorded adjustments and transactions were necessary: office supplies used, $600; services performed for clients but not yet recorded or collected, $1,300; interest accrued on note receivable from a customer, $300; dividends declared and paid to shareholders, $700. After recording these adjustments the net income would be:
A. $39,800
B. $40,400
C. $42,300
D. $43,000
E. None of the above.
Use the following data for the next 4 questions:
Shown below is an adjusted trial balance for Daves Repair Service on December 31, 2012:
Daves Repair Service
Adjusted Trial Balance
December 31, 2012
Cash $25,100
Salaries Expense 22,000
Office Equipment 37,000
Accounts Payable $2,500
Depreciation Expense 500
Accumulated Depreciation 1,500
Unearned Revenue 400
Retained Earnings 4,200
Accounts Receivable 6,500
Dividends 300
Fees Revenue 54,000
Common Stock 40,000
Advertising Expense 10,000
Utilities Expense 1,200
$102,600 $102,600
3. Compute total current liabilities on the balance sheet as of December 31, 2012.
A. $4,400
B. $2,900
C. $3,200
D. $2,500
E. None of the above.
4. Compute the amount of total assets on the balance sheet as of December 31, 2012.
A. $67,500
B. $31,600
C. $67,100
D. $68,600
E. None of the above.
5. Compute the ending balance in Retained Earnings as of December 31, 2012, after closing entries are made.
A. $4,200
B. $24,500
C. $20,300
D. $24,200
E. None of the above.
6. After closing entries are made, compute the dollar amount the post-closing trial balance will balance at.
A. $67,500
B. $64,200
C. $68,600
D. $67,100
E. None of the above.
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