2. After all revenues and expenses have been closed at December 31, 20x8, Income Summary has a debit of $140,000 and a credit of $125,000. As of the same date, Retained Earnings has a credit balance of $95,000. Dividends declared on December 1, 20x8 were $10,000, Issuances of Common Stock during 2008 $20,000 REQUIRED: Determine the following for 20x8 A. $ Net Income or Loss for 20x8. B. $ Increase or decrease in retained earnings C. $ Increase or decrease in stockholders' equity. D. $ Ending retained earnings E. Journalize the entry or entries to complete the closing of the accounts. Alternative for 4.(a), above In completing the accounting cycle at December 31, the end of the fiscal year, the following errors occurred: 1. The amount of prepaid insurance that should have been transferred from the asset account to the expense account was $3,200. No adjusting entry was made. REQUIRED: Encirclethecorresponding tothemostnearly correctanswer: Falling to make the adjusting entry for the expired prepaid insurance would resultin: (A) Liabilities UIS, Expenses 0/S, Net Income 0/S, Assets U/S and Retained Earnings ors. (B) Liabilities N/A, Expenses U/S, Net Income 0/S, Assets 0/S, and Retained Earnings O/S. (C) Liabilities N/A, Expenses U/S, Net Income U/S, Assets 0/S, and Retained Earnings O/S. (D) None of these I 5. At the beginning of the year, Warren Company's assets were $180,000, and its Stockholders' equity was $100,000. During the year, assets increased $60,000, liabilities decreased $10,000, the dividends declared and pa were $10,000 and contributions from investors were $12.000 REQUIRED: Using the forms provided, determine the net income (loss) for the year. Assets-Liabilities - Stockholders' Equity Beginning Ending Stockholders' Equity Statement 14 ... tad financial information before 6. Lucas Company reports the following adjustments Dr. $100,00 0 Accounts Receivables Allowance for Doubtful Accounts Sales Revenue (all on credit) Sales Returns and Allowances $2,000 900,000 50,000 Lucas Company estimates bad debts at 5% of accounts receivable. 4 REQUIRED: (a) The balance in the allowance account after adjustment should be ? (b) Prepare the journal entry to record Bad Cebts Expense. (c) Repeat part (b) above, assuming that the Allowance for Doubtful accounts has a debit balance of $2,000. 9 14