Closing entries are necessary so that retained earnings will begin each period with a zero balance. O True O False Type here to search Use the information in the adjusted trial balance presented below to calculate the current ratio for Taron Company, Inc Account Title Dr 23.000 16.000 6,600 100,000 50,000 95,000 Cash Accounts receivable Prepaid insurance Equipment Accumulated Depreciation-Equipment Land Accounts payable Interest payable Unearned revenue Long-term notes payable Common stock Retained earnings Totals 17.000 2.400 5.000 30.000 1000 133200 240.600 240600 1.87 3.92 O 160 0.54 1.77. Type here to search . K. Canopy, the stockholder of Canopy Services, Inc. The company paid $5.700 cash in dividends to the owner (sole stockholder). The entry to close the dividends account at the end of the year is O Debit Retained Earnings $5,700; credit Dividends $5700 O Debit Income Summary $5.700; credit Retained Earnings $5,700 O Debit Retained Earnings $5,700: credit Solary Expense $5.700 O Debit Dividends $5.700, credit Retained Earnings $5,700 O Debit Dividends $5.700. credit Cash, $5,700 Type here to search On July 1, a company paid the $2,400 premium on a one-year Insurance policy with benefits beginning on that date. What will be the insurance expense on the annual Income statement for the current year ended December 31? O $1,200. $1,000 O O O $2,400 $1.400. 5400 A 0 4 /2020 EB Type here to search Each adjusting entry affects one or more income statements account, one or more balance sheet account, and never cash. O True O False @ A4 122000 Type trete to search The following statements regarding merchandise inventory are true except O Merchandise inventory refers to products a company owns and intends to sell. O Purchasing merchandise inventory is part of the operating cycle for a business. O Merchandise inventory is reported on the balance sheet as a current asset. O Merchandise inventory may include the costs of freight in and making them ready for sale, O Merchandise inventory appears on the balance sheet of a service company. Type here to search A company made no adjusting entry for accrued and unpaid employee salaries of $9,000 on December 31. Which of the following statements is true? O It will have no effect on income. O It will understate expenses and overstate net income by $9,000. O It will understate assets by $9,000. O It will understate net income by $9,000. O It will overstate assets and liabilities by $9,000. 1 42/2000 Type here to search