1

Cash is a temporary account and it should be zero after all closing entries have been posted.

True

False

2

The accounting cycle begins at the start of a new accounting period.

True

False

3

Crane Company has the following year-end account balances on November 30, 2017: Service Revenue $37,000; Insurance Expense $2,700; Rent Expense $8,000; Supplies Expense $1,350; L. Wilfrid, Capital $42,000; and L. Wilfrid, Drawings $28,000.

Prepare the closing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Nov. 30	Insurance Expense Income Summary No Entry L. Wilfrid, Capital L. Wilfrid, Drawings Rent Expense Supplies Expense Service Revenue
	Insurance Expense Income Summary No Entry L. Wilfrid, Capital L. Wilfrid, Drawings Rent Expense Supplies Expense Service Revenue
	(To close revenue account)
Nov. 30	Insurance Expense Income Summary No Entry L. Wilfrid, Capital L. Wilfrid, Drawings Rent Expense Supplies Expense Service Revenue
	Insurance Expense Income Summary No Entry L. Wilfrid, Capital L. Wilfrid, Drawings Rent Expense Supplies Expense Service Revenue
	Insurance Expense Income Summary No Entry L. Wilfrid, Capital L. Wilfrid, Drawings Rent Expense Supplies Expense Service Revenue
	Insurance Expense Income Summary No Entry L. Wilfrid, Capital L. Wilfrid, Drawings Rent Expense Supplies Expense Service Revenue
	(To close expense accounts)
Nov. 30	Insurance Expense Income Summary No Entry L. Wilfrid, Capital L. Wilfrid, Drawings Rent Expense Supplies Expense Service Revenue
	Insurance Expense Income Summary No Entry L. Wilfrid, Capital L. Wilfrid, Drawings Rent Expense Supplies Expense Service Revenue
	(To close income summary)
Nov. 30	Insurance Expense Income Summary No Entry L. Wilfrid, Capital L. Wilfrid, Drawings Rent Expense Supplies Expense Service Revenue
	Insurance Expense Income Summary No Entry L. Wilfrid, Capital L. Wilfrid, Drawings Rent Expense Supplies Expense Service Revenue
	(To close drawings account)

Calculate the balance in L. Wilfrid, Capital after the closing entries are posted.

Closing balance

$