MCQs

The entry to close the revenue account includes a * ?

debit to Income Summary for $3,500.

credit to Income Summary for $3,500.

debit to Revenues for $70,000.

credit to Revenues for $70,000.

The entry to close the expense accounts includes a *

debit to Income Summary for $3,500.

credit to Income Summary for $3,500.

debit to Income Summary for $73,500.

debit to Wages Expense for $2,500.

After the revenue and expense accounts have been closed, the balance in Income Summary will be *

$0.

a debit balance of $3,500.

a credit balance of $3,500.

a credit balance of $70,000.

The entry to close Income Summary to Owners Capital includes *

a debit to Revenue for $70,000.

credits to Expenses totaling $73,500.

a credit to Income Summary for $3,500.

a credit to Owners Capital for $3,500.

At January 1, 2019, the Company reported owners capital of $50,000. Owners drawings for the year totaled $10,000. At December 31, 2019, the company will report owners capital of *

$13,500.

$36,500.

$40,000.

$43,500.

After all closing entries have been posted, the revenue account will have a balance of *

$0.

$70,000 credit.

$70,000 debit.

$3,500 credit.

The income statement for the month of June, 2019 of ZARK Company contains the following information: $70,000 Revenues Expenses: Wages Expense Rent Expense Advertising Expense Supplies Expense Utilities Expense Insurance Expense Total expenses Net income (loss) $45,000 12,000 6,000 6,000 2,500 2,000 73,500 $(3.500)