15. Which of the following statements best describes the main purpose of closing entries? a. To faciliate posting and taking a trial balance. b. To update all permanent accounts prior to the following accounting period. c. To reduce the balances of revenue and expense accounts to zero so that they may be used to accumulate the revenues and expenses of the next period. 4. To complete the record of various transactions that were started in a prior period. 16. Smith Company sublet a portion of its warehouse for five years at an annual rental of $75.000, beginning on May 1, 2021. The tenant, Sheri Charter, paid one year's rent in advance, which Smith recorded as a credit to Uneamed Rent Revenue. Smith reports on a calendar-year basis. The adjustment on December 31, 2021 for Smith should be a. No entry b. Unearned Rent Revenue 25,000 Rent Revenue 25.000 e. Rent Revenue 25,000 Unearned Rent Revenue d. Unearned Rent Revenue 25.000 50,000 Rent Revenue 50.000 17. Jones Corporation reports the following information: Net income $1,000,000 Dividends on common stock 140,000 Dividends on preferred stock 60,000 Weighted average common shares outstanding 100,000 Drew should report earnings per share of a. $8.00 b. 8.60 c. $9.40 d. $10.00 18. Which of the following should be reported as a prior period adjustment? Change in Estimated Lives Detection of Error in Prior Year's of Depreciable Assets Calculation of Depreciation Expense Yes Yes Yes b. No No Yes c. No d. a. No