QUESTION 1

The income statement for the month of June, 2013 of Camera Obscura Enterprises contains the following information:

Revenues				$7,000
Expenses:
	Salaries and Wages Expense		$3,000
	Rent Expense		1,000
	Advertising Expense		800
	Supplies Expense		300
	Insurance Expense		100
		Total expenses		5,200
Net income				$1,800

The entry to close the expense accounts includes a

debit to Income Summary for $1,800.

debit to Wages Expense for $3,000.

credit to Rent Expense for $1,000.

credit income summary for 5,200

=================================================

QUESTION 2

The income statement for the year 2013 of Fugazi Co. contains the following information:

Revenues				$70,000
Expenses:
	Salaries and Wages Expense		$45,000
	Rent Expense		12,000
	Advertising Expense		8,000
	Supplies Expense		6,000
	Utilities Expense		2,500
	Insurance Expense		2,000
		Total expenses		75,500
Net income (loss)				($5,500)

At January 1, 2013, Fugazi reported retained earnings of $50,000. Dividends for the year totalled $10,000. At December 31, 2013, the company will report retained earning of

$15,500.

$34,500.

$40,000.

$45,500.

QUESTION 3

The income statement for the month of June, 2013 of Camera Obscura Enterprises contains the following information:

Revenues				$7,000
Expenses:
	Salaries and Wages Expense		$3,000
	Rent Expense		1,000
	Advertising Expense		800
	Supplies Expense		300
	Insurance Expense		100
		Total expenses		5,200
Net income				$1,800

At June 1, 2013, Camera Obscura reported retained earnings of $35,000. The company paid no dividends during June. At June 30, 2013, the company will report retained earnings of

$35,000.

$36,800.

$42,000.

$29,800.

============================================================= QUESTION 4

The income statement for the year 2013 of Fugazi Co. contains the following information:

Revenues				$70,000
Expenses:
	Salaries and Wages Expense		$45,000
	Rent Expense		12,000
	Advertising Expense		8,000
	Supplies Expense		6,000
	Utilities Expense		2,500
	Insurance Expense		2,000
		Total expenses		75,500
Net income (loss)				($5,500)

After all closing entries have been posted, the Income Summary account will have a balance of

$0.

$5,500 debit.

$5,500 credit.

$34,500 credit.

======================================================== QUESTION 5

The income statement for the year 2013 of Fugazi Co. contains the following information:

Revenues				$70,000
Expenses:
	Salaries and Wages Expense		$45,000
	Rent Expense		12,000
	Advertising Expense		8,000
	Supplies Expense		6,000
	Utilities Expense		2,500
	Insurance Expense		2,000
		Total expenses		75,500
Net income (loss)				($5,500)

The entry to close Income Summary to Retained Earnings includes

credits to Expenses totalling $75,500.

a credit to Income Summary for $5,500.

a credit to Retained Earning for $5,500.

a debit to Revenue for $70,000.