Mark the following statements as True or False, then select the correct corresponding multiple choice answer.

_____ All permanent accounts must be closed at the end of the accounting period.

_____ All adjusting journal entries will use an Income Statement and a Balance Sheet account.

_____ The totals in the balance sheet columns of an after closing trial balance agree with the totals on the

balance sheet.

_____ The correct entry to close the dividend account is a debit to Income Summary and a credit to Dividends.

	A.	True, True, True, True
	B.	True, False, True, False
	C.	True, True, True, False
	D.	False, False, False, False
	E.	False, True, True, False

Use the following information to answer the next 5 questions.

The unadjusted trial balance for a company as of December 31, 2015 appears below.

	Debit	Credit
Cash	$1,200
Accounts Receivable	900
Prepaid Insurance	900
Supplies	2,000
Land	10,000
Office Furniture	4,500
Accounts Payable		900
Unearned Revenue		1,500
Note Payable		5,500
Common Stock		3,000
Retained Earnings		7,400
Dividends	1,100
Service Revenues		4,100
Rent Expense	600
Salaries Expense	1,200
	$22,400	$22,400

Additional Information:

1. The Company paid $900 for a one-year insurance policy on July 1, 2015.
2. The office furniture was purchased on January 1, 2015 and is expected to have a nine-year life and no salvage. Depreciation for 2015 has not been recorded.
3. The unearned revenue account was created when the Company was paid $1,500 for services to be rendered. Half of these services were rendered on December 31, 2015.
4. The note payable represents a 8 month, 8% loan obtained from The Bank & Trust on October 1, 2015.
5. The Company paid $600 on November 1, 2015 as annual rent for its warehouse. This amount was debited to rent expense.
6. The Company operates five days per week (M-F) with a weekly payroll of $500. The Company pays its employees every Friday. December 31, 2015 is a Wednesday. These wages have yet to be recorded.
7. Supplies on hand at December 31, 2015 had a cost of $600.

Using the information from above...

Net Income after Adjusting entries for the year-ending December 31, 2015 is

	A.	$790
	B.	$40
	C.	$3,250
	D.	$590
	E.	$2,690