Question 19(1 point)

The income statement for the year 2015 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 the expense accounts includes a

Question 19 options:

debit to Income Summary for $5,500.

credit to Income Summary for $5,500.

debit to Income Summary for $75,500.

debit to Wages Expense for $2,500.

SaveQuestion 20(1 point)

The entries recorded in the Other Accounts column of a cash payments journal

Question 20 options:

are posted to the accounts payable subsidiary ledger daily.

are posted individually to accounts in the general ledger.

are not posted individually but are posted as a column total to the general ledger.

do not require posting.

SaveQuestion 21(1 point)

The income statement for the year 2015 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 the revenue and expense accounts have been closed, the balance in Income Summary will be

Question 21 options:

$0.

a debit balance of $5,500.

a credit balance of $5,500.

a credit balance of $70,000.

SaveQuestion 22(1 point)

The income statement for the month of June, 2015 of Camera Obscura Enterprises 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 Expense2,000

Total expenses75,500

Net income (loss) $(5,500)

At June 1, 2015, Camera Obscura reported owner's equity of $35,000. The company had no owner drawings during June. At June 30, 2015, the company will report owner's equity of

Question 22 options:

$29,500.

$35,000.

$36,800.

$42,000.

SaveQuestion 23(1 point)

The balance in the income summary account before it is closed will be equal to

Question 23 options:

the net income or loss on the income statement.

the beginning balance in the owner's capital account.

the ending balance in the owner's capital account.

zero.

SaveQuestion 24(1 point)

The income statement for the year 2015 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 Owner's Capital includes

Question 24 options:

a debit to Revenue for $70,000.

credits to Expenses totaling $75,500.

a credit to Income Summary for $5,500.

a credit to Owner's Capital for $5,500.

SaveQuestion 25(1 point)

As Mel Smith was doing his year-end accounting, he noticed that the bookkeeper had made errors in recording several transactions. The erroneous transactions are as follows:

(a)A check for $700 was issued for goods previously purchased on account. The bookkeeper debited Accounts Receivable and credited Cash for $700. What is the correcting entry needed for this transaction?

Question 25 options:

Interest Expense700

Interest Receivable700

Cash700

Accounts Receivable700

Accounts Payable700

Accounts Receivable700

Cash700

Depreciation Expense700