Below the Adjusted Trial Balance for Torr's Towing Services is given.

Using the Adjusted Trial Balance prepare the closing entries at June 30, 2019 (on a piece of paper) and select the correct answer to the questions asked about the closing entries.

TORR'S TOWING SERVICESWORKSHEETFOR THE YEAR ENDED JUNE 30, 2019ADJUSTED TRIAL BALANCEACCOUNT TITLESDEBIT ($)CREDIT ($)Cash56,820.00Accounts Receivable28,200.00Towing Supplies9,000.00Notes Receivable2,500.00Land180,000.00Vehicles66,000.00Accumulated depreciation -Vehicles60,000.00Accounts Payable31,100.00Unearned Revenue1,400.00Notes Payable20,000.00Capital - Torr Tait205,500.00Withdrawals - Torr Tait3,000.00Towing Service Revenue143,500.00Rent Revenue28,000.00Advertising Expense3,500.00Insurance Expense1,200.00Internet Expense1,160.00Meals and Entertainment Expense2,500.00Telephone Expense1,120.00Utilities Expense10,800.00Wage Expense121,750.00Depreciation - Vehicles7,200.00Interest Expense400.00Supplies Expense9,000.00Interest Payable400.00Wages Payable14,250.00504,150.00504,150.00

What is the journal entry to close out the Withdrawal's account?

Answer 1

Choose...

$12,870 Credit

$171,500 Credit

$12,870 Debit

Temporary Account

$171,500 Debit

$158,630 Debit

$143,500 Credit

$172,900 Credit

Revenue Account

Dr. Withdrawals $3,000 Cr. Capital $3,000

No entry required

$151,430 Debit

Permanent Account

Dr. Capital $3,000 Cr. Withdrawals $3,000

What is the total amount posted to the Income Summary account to close out the revenue account(s)?

Answer 2

Choose...

$12,870 Credit

$171,500 Credit

$12,870 Debit

Temporary Account

$171,500 Debit

$158,630 Debit

$143,500 Credit

$172,900 Credit

Revenue Account

Dr. Withdrawals $3,000 Cr. Capital $3,000

No entry required

$151,430 Debit

Permanent Account

Dr. Capital $3,000 Cr. Withdrawals $3,000

What is the total amount posted to the Owners' Capital account to close out the Income Summary account?

Answer 3

Choose...

$12,870 Credit

$171,500 Credit

$12,870 Debit

Temporary Account

$171,500 Debit

$158,630 Debit

$143,500 Credit

$172,900 Credit

Revenue Account

Dr. Withdrawals $3,000 Cr. Capital $3,000

No entry required

$151,430 Debit

Permanent Account

Dr. Capital $3,000 Cr. Withdrawals $3,000

What type of account is the Income Summary account?

Answer 4

Choose...

$12,870 Credit

$171,500 Credit

$12,870 Debit

Temporary Account

$171,500 Debit

$158,630 Debit

$143,500 Credit

$172,900 Credit

Revenue Account

Dr. Withdrawals $3,000 Cr. Capital $3,000

No entry required

$151,430 Debit

Permanent Account

Dr. Capital $3,000 Cr. Withdrawals $3,000

What is the total amount posted to the Income Summary account to close out the expense accounts?

Answer 5

Choose...

$12,870 Credit

$171,500 Credit

$12,870 Debit

Temporary Account

$171,500 Debit

$158,630 Debit

$143,500 Credit

$172,900 Credit

Revenue Account

Dr. Withdrawals $3,000 Cr. Capital $3,000

No entry required

$151,430 Debit

Permanent Account

Dr. Capital $3,000 Cr. Withdrawals $3,000