#38-41

38. A company's ledger accounts and their end-of period balances before closing entries are shown below. What Summary account? (Assume all accounts have normal balances.) amount will be posted to Retained Earnings in the process of closing the Income Retained earnings Dividends Revenue $7,000 Rent expense Salaries expense Insurance expense 9,600 29,000 3.600 7,200 920 500 1,500 Depr. Espense- equipment Accum depr.-equipment a. $16,780 debit b. $7,180 credit c. $18,280 credit d. $16,780 credit A note receivable due in 18 months is listed on the balance sheet under the caption a. fixed assets b. investments c. current assets d. long-term liabilities 39. Vacation pay payable is reported on the balance sheet as aln) a. long-term liability b. current liability e. expense 40. when the vacations will be taken by current liability or long-term liability, depending upon employees d. value common stock for $45 per share. The journal entry to 41. A corporation issued 10,000 shares of $40 par record the issue of the stock would include which of it to Contributed Capital in Excess of Par, Common a. A cred b. A credit to Common Stock, $450,000 c. A credit to Gain on the Sale of Common Stock, $50,000 d. A credit to Common Stock, $400.000 Pag WW.ACCOUNTINGENTRANCEEXAM.CO M