no) wnicn or the Iouowing acc0unts W111 oe closed by oemnng the income Summary account? A) Owner, Capital; B) Service Revenue; C) Accounts Receivable; D) Salaries Expense; E) None of the above 37) Martinville Company earned revenues of $20,000 and incurred expenses of $4,000. Martinville withdrew $3,500 for personal use. What is the balance in the Income Summary account prior to closing net income or loss to the Martinville, Capital account? A) debit balance of $16,000; B) debit balance of $12,500; C) credit balance of $16,000 D) credit balance of $20,000 ; E) None of the above 38) Woods Company earned revenues of $12,000 and incurred expenses of $9,500. The owner, Woods, withdrew $3,000. What is the balance in the Income Summary account after closing net income or loss to the Woods, Capital account? A) debit balance of $12,000; B) credit balance of $9,500; C) credit balance of $2,500 D) balance of $0; E) None of the above 39) The net income of Hendley Company for the year is $25,000. Withdrawals during the year were $30,000. No new capital contributions were made during the year. Which of the following statements is TRUE? A) Hendley, Capital account decreases by $25,000.; B) Hendley, Capital account decreases by $5,000.; C) Hendley, Capital account increases by $30,000.; D) Hendley, Capital will remain the same; E) None of the above 40) Olsteen Company earned revenues of $61,000 and incurred expenses of $71,000. No withdrawals were taken. The owner did not make any new capital contributions during the year. Which of the following statements is correct? A) The entry to close Income Summary is the same regardless of a net income or a net loss. B) Olsteen, Capital will be debited for $10,000 and Income Summary will be credited for $10,000. C) The entries to close revenues and expenses will differ if there is a net loss. D) The entry to close Income Summary requires a debit to the Income Summary account. E) None of the above 41) Jackson Services Company earned revenues of $104,000, incurred expenses of $113,000. The owner made withdrawals of $4,000. There were no new capital contributions during the year. The company is a sole proprietorship. Which of the following statements is correct? A) A debit is needed to zero out the balance of the Income Summary account. B) Jackson, Capital will decrease $13,000.; C) Jackson has incurred a net loss of $5,000. D) When compared to a business that earned net income, the only closing entry that differs is the one to close the owner's withdrawals; E) None of the above 42) Which of the following are NOT included in a post-closing trial balance? A) Assets and liabilities; B) Owner, Capital and assets C) Owner, Capital and liabilities; D) Revenues and expenses 43) The post-closing trial balance shows the net income for the period just ended. A. True
