QUESTION TT Which of the following describes the purpose(s) of closing entries? a Transfer the balances of temporary accounts to retained earnings; reduce the balances of the temporary accounts to zero to prepare them for measuring activity in the next period. - None of the answers given are correct OC. Transfer the balances of temporary accounts to common stock; reduce the balances of the asset and liability accounts to zero to prepare them for measuring activity in the next period. od Adjust the balances of asset and liability accounts for unrecorded activity during the period. Transfer the balances of temporary accounts to common stock; reduce the balances of the temporary accounts to zero to prepare them for measuring activity in the next period. QUESTION 18 The following amounts are reported on the classified Balance Sheet of Summer Song, Corp. as of 12/31/2019 (Assume the firm has no Preferred Stock or Treasury Stock): Total Assets Common Stock Additional Paid-In Capital Retained Earnings $405,900 3,500 82,500 56,400 What is the amount of Total Liabilities? a $548,300 ob $263,500 OC.5465,800 od. $346,000 0.5405,900 BUCOTTUTTO Consider the following list of accounts: Additional Paid-In Capital Cost of Goods Sold Deferred Revenue Retained Earnings Wages Expense Treasury Stock Common Stock Salaries Payable Accounts Payable Inventory Accumulated Depreciation-Equipment Accounts Receivable Sales Revenue How many of these accounts are increased with a credit? O a. Four ob. Five C. Six Seven e Eight QUESTION 20 On 10/5, Why So Close, Ltd. paid an account payable related to a September purchase of inventory for $1,000. The transaction on 10/5 should be recorded as follows: O a None of the answers given are correct. Debit Inventory $1,000, credit Cash $1,000 C. Debit Accounts Payable $1,000, credit Inventory $1,000 od Debit Accounts Payable $1,000, credit Cash $1,000. O e Debit Cash $1,000, credit Accounts Payable $1,000. QUESTION 21 Five-O Corp. began operations in 2016. On 1/1/2016, the company issued 7,000 shares of 10%, S10 par value preferred stock and 100,000 shares of common stock. The company was not able to pay dividends in 2016 or 2017. However, in 2018, the company declared it will pay dividends to shareholders totaling $75,000 Assuming the preferred stock is cumulative, how much of the $75,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders in 2018? O $75,000 to preferred stockholders and SO to common stockholders b. 50 to preferred stockholders and $75,000 to common stockholders. OC. $21,000 to preferred stockholders and $54,000 to common stockholders. d.570,000 to preferred stockholders and $5,000 to common stockholders. e.57,000 to preferred stockholders and $68,000 to common stockholders
