Question
IV. The following balances are stated below: Cash $1,170 Supplies 1,930 Prepaid Insurance 600 Equipment 20,600 Accumulated depreciation 5,400 Accounts Payable 500 Unearned Revenue 700
IV. The following balances are stated below:
Cash $1,170
Supplies 1,930
Prepaid Insurance 600
Equipment 20,600
Accumulated depreciation 5,400
Accounts Payable 500
Unearned Revenue 700
Capital 13,925
Withdrawal 4,800
Revenue-Fees Earned 21,700
Salary Expense 6,900
Depreciation Expense 2,000
Supplies Expense 800
Insurance Expense 400
Using this information for questions 16-20 answer the
following questions as they relate to closing entries
16. Which answer would best represent the closing entry for a
revenue type account?
a. debit to income summary for $22,400
b. credit to income summary for $21,700
c. credit to revenue for $21,700
d. debit to income summary for $21,700
17. Which answer would represent the closing entry for
expense type account?
a. debit income summary for $10,100
b. debit income summary for $15,500
c. debit accumulated depreciation $5,400
d. credit depreciation expense $2,000
-5-
18. Which answer would represent the proper closing out of
profit or loss for the period?
a. debit income summary for $11,600
b. debit capital for $11,600
c. credit income summary for $12,300
d. credit capital $12,300
19. Which answer would represent the proper entry for
closing out the withdrawals?
a. debit withdrawals for $4,800
b. debit capital for $4,800
c. credit income summary for $4,800
d. none of the above are correct
20. After recording the proper closing entries what is the
Capital account balance at the end of the period?
a. $20,725
b. $13,925
c. $20,600
d. $15,500
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