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E. The following transactions occtu'red in December of 2011: .. We performed services valued at $10,000. . . .. We collected $5,000 of cash for

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E. The following transactions occtu'red in December of 2011: .. We performed services valued at $10,000. . . .. We collected $5,000 of cash for services to be performed in March 2012. .. We billed for services of $14,000 that were performed in November of 2011. . . .. We invested $30,000 into our business. The amount of revenue that should be recognized in December 2011 is: a. $20,000 b. $50,000 c. $10,000 d. $24,000 2. The closing process usually consists of four journal entries. Which statement is true concerning those entries? a. When we debit Income Summary and credit the Capital Account, we are moving net income to the Capital ccount b. When we perform the closing process we are zeroing out all of our permanent accounts getting them ready for the next accounting cycle. c. When we perform the closing process we must close the Capital Account to Net Income or Net Loss. d. The closing process ensures that all accounts have the proper balances so we can prepare our financial statements. 0. The accounting cycle begins with what step? a. Recording the transaction b. Preparing financial statements c. Analysis of the transaction d. None of the above 0. Our company performs $2,000 of services and receives $500 in cash and the balance will be received at a later date. The effect of dais transaction is: a. assets increase by $500 b. Revenues increase by $500 c. Net income increases by $2,000 d. Net income increases by $500 10. On January 1, 2011 we started a new business by investing cash of $10,000 and equipment of $9,000. During the year we withdraw $2,000. When we prepare of Statement of IL'Ilwners Equity we note a final balance of $21,000. Based on this information, what was out net income or loss for the year? a. $4,000 net loss b. $2,000 net income c. $2,000 net loss d. $4,000 net income

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