39. Stockholders' equity is a. added to assets and the two are equal to liabilities b. added to liabilities and the two are equal to assets c. subtracted from liabilities and the net amount is equal to assets d. equal to the total of assets and liabilities 40. Which of the following is not true about closing entries? a. There are four closing entries that update the retained earnings account. b. After the second closing entry, the income summary account is equal to the net income or loss c. All real accounts are closed at the end of the period. d. By closing nominal accounts at the end of the period to zero, it is possible to isolate next period correctly 41. What is the first account that should be listed in the post closing trial balance? a. Income Summary b. Common Stock c. Cash d. Fees Earned 42. Which of the following accounts should be closed to Income Summary at the end of the fiscal year? a. Service Revenue b. Equipment c. Prepaid Insurance d. Unearned Rent 43. The following accounts were taken from the Adjusted Trial Balance columns of the end-of-period spread Accumulated Depreciation Fees Earned Depreciation Expense Insurance Expense Prepaid Insurance Supplies Supplies Expense 3,200 17,400 1,300 400 4,800 900 3,800 Net income for the period is a. $5,500 b. $11,900 c. $17,400 d. $8,700