1)

Tom's Electrical Service purchased tools for $6,000. They have an expected life of 20 months and no residual value. The adjusting journal entry for the month is:

A.

Accumulated Depreciation	300
Depreciation Expense	300

B.

Accumulated Depreciation	300
Equipment	300

C.

Depreciation Expense	300
Accumulated Depreciation	300

D.

Depreciation Expense	300
Tools	300

2)

Eav's Event Planning bought a computer on January 1st worth

$3,000 with an expected life of 4 years and a residual value of

$1,500. What is the adjusting journal entry for December 31 at the end of the first year?

A.

Computer	375
Depreciation Expense	375

B.

Depreciation Expense	375
Accumulated Depreciation, Computer	375

C.

Computer	375
Accumulated Depreciation, Computer	375

D.

Depreciation Expense	375
Computer

3)

How do you close the expense accounts?

A.

Debit Capital; credit the expense accounts

B.

Credit Capital; debit the expense accounts

C.

Credit Income Summary; debit the expense accounts

D.

Debit Income Summary; credit the expense accounts

4)

The final step in the accounting cycle is:

A.

posting the adjusting entries.

B.

posting the closing entries.

C.

preparing the financial statements.

D.

preparing the post

closing trial balance.

5)

The beginning capital balance is $1,600; there are no additional investments or withdrawals by the owner during the accounting period. The period's revenue is $630 and expenses total $600. What is the ending capital balance (after closing entries)?

A.

$2,230

B.

$30

C.

$2,200

D.

$1,630