Chapter 4

(1)

Accounts Payable is a(n)

A. temporary, or real, account

B. permanent, or nominal, account

C. temporary, or nominal, account

D. permanent, or real, account

(2)

At the end of the accounting period, the Wages Expense had a balance of $9,888, the Utilities Expense account had a balance of $5,604 and the Rent Expense account had a balance of $14,400. All accounts had normal balances. The T-account entry to close these expense accounts would be:

1. Debit Income Summary, $29,892; credit Wages Expense, $9,888; credit Utilities Expense, $5,604; and credit Rent Expense, $14,400.
2. Debit Wages Expense, $9,888; debit Utilities Expense, $5,604; and debit Rent Expense, $14,400; and credit Income Summary, $29,892
3. Debit Income Summary, $29,892; credit Retained Earnings, $29,892
4. Debit Capital, $29,892; credit Income Summary, $29,892