1. The income statement and balance sheet columns of Iron and Wine Company's worksheet reflect the following totals:

Income Statement Balance Sheet

Dr. Cr. Dr. Cr.

Totals $72,000 $44,000 $60,000 $88,000

The net income (or loss) for the period is

a. $44,000 income.

b. $28,000 income.

c. $28,000 loss.

d. not determinable.

2. The income statement for the year 2020 of Andi Co. contains the following information:

Revenues $70,000

Expenses:

Salaries and Wages Expense $45,000

Rent Expense 12,000

Advertising Expense 10,000

Supplies Expense 6,000

Utilities Expense 2,500

Insurance Expense 2,000

Total expenses 77,500

Net income (loss) $ (7,500)

After all closing entries have been posted, the revenue account will have a balance of

a. $0.

b. $70,000 credit.

c. $70,000 debit.

d. $7,500 credit.

3. Which of the following journal entries is recorded correctly and in the standard format?

a. Salaries and Wages Expense .............................................. 500

Cash ................................................................................ 1,500

Advertising Expense ............................................................. 1,000

b. Salaries and Wages Expense .............................................. 500

Advertising Expense ............................................................. 1,000

Cash ................................................................................ 1,500

c. Cash ...................................................................................... 1,500

Salaries and Wages Expense ........................................ 500

Advertising Expense ....................................................... 1,000

d. Salaries and Wages Expense .............................................. 500

Advertising Expense ............................................................. 1,000

Cash ................................................................................ 1,500