4. A reversing entry reverses the effects of an adjusting entry from the previous period. a. True b. False 5. Real accounts are not permanent accounts. a. True b. False 6. The work sheet is a working paper that accountants can use to summarize adjusting entries and the account balances for the financial statements. a. True b. False Matching Match each journal entry that follows as one of the types of journal entries (ac) below. a. Journal entries b. Adjusting journal entries c. Closing joumal entries 7. Cash 450 Fees Earned 450 8. Fees Earned 650 ABC, Capital 650 Subjective Short Answer 9. The following revenue and expense account balances were taken from the Income Statement columns of the work sheet for Fraser Services Co. for December 31: Depreciation Expense $ 4,950 Insurance Expense 2,900 Miscellaneous Expense 1,200 Rent Expense 24,000 Service Revenue 92,500 Supplies Expense 3,150 Utilities Expense 5,000 Wages Expense 63,750 Prepare an income statement. 10. The following adjusted trial balance is the result of the adjustments made at the end of the month of July for Ladonna Douglas Company. Utilize these adjusted values to perform the closing entries for Ladonna Douglas Company. 34,750 9,750 2,525 4,785 10,750 Cash Accounts Receivable Office Supplies Store Supplies Machinery Accumulated Depreciation Accounts Payable Notes Payable Ladonna Douglas, Capital Ladonna Douglas, Drawing Service Revenue Wages Expense Rent Expense Advertising Expense Office Supplies Expense Store Supplies Expense Depreciation Expense 2,150 14,300 11,500 53,725 13,250 41,500 37,425 3,000 2,750 1,465 2,150 575 123,175 123,175