7 110 Chapter 5 Homework Handout The total revenue for the month of March was $3,000, total expenses were $4,500, withdrawals amounted to $800, and additional investment made during the month totaled $2,500. The net income or net loss for the month was (A) $500 income; (B) $1,000 income; (C) $3,000 income: (D) $4,500 loss; (E) $1,500 loss. 8 Capital at the beginning of the month had a balance of $30,500, the net loss for the month was $12,000, and withdrawals for personal use during the month totaled $1,500. The capital balance at the end of the month was (A) $30,500; (B) $18,500; (C) $17,000; (D) $12,000; (E) $1,500. 9 On a worksheet, Prepaid Insurance shows a balance of $300 in the trial balance section and a credited amount of $100 in the adjustments section. The balance shown in the adjusted trial balance section is (A) $100 debit; (B) $100 credit; (C) $200 debit; (D) $200 credit. 10 The income statement section of a worksheet shows a debit total of $200) and a credit total of $300. This means the company has a (A) $100 net income; (B) $100 net loss; (C) $500 net income; (D) $500 net loss. For the questions below, use the following facts: A delivery truck is purchased for $40,000 on January 1, 2018. It has no salvage value and an useful life of 4 years. The business uses the straight-line method of depreciation to calculate depreciation. 11 After the adjusting entry on December 31, 2018, the balance in the Accumulated Depreciation - Truck account is (A) 0; (B) $1,000; (C) $10,000; (D) $20,000; (E) $40,000. 12 After the adjusting entry on December 31, 2019, the balance in the Accumulated Depreciation - Truck account is (A) 0; (B) $1,000; (C) $10,000; (D) $20,000; (E) $40,000. 13 After the adjusting entry on December 31, 2019, the balance in the Truck account is (A) 0; (B) $1,000; (C) $10,000; (D) $20,000; (E) $40,000. 14 After the adjusting entry on December 31, 2019, the book value of the delivery truck is (A) 0; (B) $1,000; (C) $10,000; (D) $20,000; (E) $40,000