Question 11pts

Each of the following accounts is closed to Income Summaryexcept

Expenses

Owner's Drawings

Revenues

All of these are closed to the Income Summary

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Question 21pts

Closing entries are made

in order to terminate the business as an operating entity.

so that all assets, liabilities, and owner's capital accounts will have zero balances when the next accounting period starts.

in order to transfer net income (or loss) and owner's drawings to the owner's capital account.

so that financial statements can be prepared.

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Question 31pts

In order to close the owner's drawings account, the

income summary account should be debited.

income summary account should be credited.

owner's capital account should be credited.

owner's capital account should be debited.

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Question 41pts

The closing entry process consists of closing

all asset and liability accounts.

out the owner's capital account.

all permanent accounts.

all temporary accounts.

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Question 51pts

After closing entries are posted, the balance in the owner's capital account in the ledger will be equal to

the beginning owner's capital reported on the owner's equity statement.

the amount of the owner's capital reported on the balance sheet.

zero.

the net income for the period.

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Question 61pts

The income statement for the month of June, 2012 of Camera Obscura Enterprises contains the following information:

Revenues$7,000

Expenses:

Salaries and Wages Expense$3,000

Rent Expense1,000

Advertising Expense800

Supplies Expense300

Insurance Expense100

Total expenses5,200

Net income$1,800

The entry to close the revenue account includes a

debit to Income Summary for $1,800.

credit to Income Summary for $1,800.

debit to Income Summary for $7,000.

credit to Income Summary for $7,000.

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Question 71pts

The income statement for the month of June, 2012 of Camera Obscura Enterprises contains the following information:

Revenues$7,000

Expenses:

Salaries and Wages Expense$3,000

Rent Expense1,000

Advertising Expense800

Supplies Expense300

Insurance Expense100

Total expenses5,200

Net income$1,800

The entry to close the expense accounts includes a

debit to Income Summary for $1,800.

credit to Rent Expense for $1,000.

credit to Income Summary for $5,200.

debit to Wages Expense for $3,000.

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Question 81pts

The income statement for the month of June, 2012 of Camera Obscura Enterprises contains the following information:

Revenues$7,000

Expenses:

Salaries and Wages Expense$3,000

Rent Expense1,000

Advertising Expense800

Supplies Expense300

Insurance Expense100

Total expenses5,200

Net income$1,800

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

0.

a debit balance of $1,800.

a credit balance of $1,800

a debit balance of $7,000

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Question 91pts

The income statement for the month of June, 2012 of Camera Obscura Enterprises contains the following information:

Revenues$7,000

Expenses:

Salaries and Wages Expense$3,000

Rent Expense1,000

Advertising Expense800

Supplies Expense300

Insurance Expense100

Total expenses5,200

Net income$1,800

The entry to close Income Summary to Ramirez, Capital includes

a debit to Revenues for $7,000.

credits to Expenses totalling $5,200.

a credit to Income Summary for $1,800

a credit to Owner's Capital for $1,800.

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Question 101pts

The income statement for the month of June, 2012 of Camera Obscura Enterprises contains the following information:

Revenues$7,000

Expenses:

Salaries and Wages Expense$3,000

Rent Expense1,000

Advertising Expense800

Supplies Expense300

Insurance Expense100

Total expenses5,200

Net income$1,800

At June 1, 2012, Camera Obscura reported owner's equity of $35,000.The company had no owner drawings during June.At June 30, 2012, the company will report owner's equity of

$29,800.

$35,000.

$36,800.

$42,000.