1-

Identify the statement below that is true.

If the trial balance is in balance, it proves that no errors have been made in recording and posting transactions.

The trial balance is a book of original entry.

Another name for the trial balance is the chart of accounts.

The trial balance is a list of all accounts from the ledger with their balances at a point in time.

The trial balance is another name for the balance sheet as long as debits balance with credits.

2-

A company had revenues of $54,000 and expenses of $43,250 for the accounting period. The company paid $5,950 cash in dividends to the owner (sole shareholder). Which of the following entries could not be a closing entry?

Debit Income Summary $10,750; credit Retained Earnings $10,750.

Debit Income Summary $54,000; credit Revenues $54,000.

Debit Revenues $54,000; credit Income Summary $54,000.

Debit Income Summary $43,250, credit Expenses $43,250.

Debit Retained Earnings $5,950, credit Dividends $5,950.

3-

K. Canopy is the sole stockholder of Canopy Services, Inc. The company paid $5,400 cash in dividends to Canopy. The entry to close the dividends account at the end of the year is:

Debit dividends $5,400; credit Cash, $5,400

Debit Retained Earnings $5,400; credit Dividends $5,400

Debit Dividends $5,400; credit Retained Earnings $5,400

Debit Retained Earnings $5,400, credit Salary Expense $5,400

Debit Income Summary $5,400; credit Retained Earnings $5,400

4-

If Regent Tax Services' office supplies account balance on March 1 was $400, the company purchased $550 of supplies during the month, and a physical count of supplies on hand at the end of March indicated $500 unused, what is the amount of the adjusting entry for office supplies on March 31?

$350

$450

$400

$550

$950

5-

After preparing and posting the closing entries for revenues and expenses, the income summary account has a debit balance of $32,000. The entry to close the income summary account will be:

Debit Dividends $32,000; credit Income Summary $32,000.

Debit Income Summary $32,000; credit Dividends $32,000.

Debit Income Summary $32,000; credity Retained Earnings $32,000.

Debit Retained Earnings $32,000; credit Income Summary $32,000.

Credit Retained Earnings $32,000; debit Dividends $32,000.

6-

On December 1, Victoria Company signed a 90-day, 4% note payable, with a face value of $15,000. What amount of interest expense is accrued at December 31 on the note? (Use 360 days a year.)

$100

$0

$150

$50

$600

7-

Employees earn vacation pay at the rate of one day per month. During the month of July, 32 employees qualify for one vacation day each. Their average daily wage is $107 per day. What is the amount of vacation benefit expense to be recorded for the month of July?

$107.0

$3,424.0

$34,240.0

$342.4

$32.0