The correct closing entry to close the revenue accounts is: Debit: Sales Revenue $51,985, Service Revenue $15,416; Credit: Income Summary $51,985, Income Summary $15,416 O A. Debit: Sales Revenue $58,005, Service Revenue $9,396; Credit: Income Summary $58,005, Income Summary $9,396 OB. Debit: Sales Revenue $25,447, Service Revenue $15,416; Credit: Income Summary: $40,863 OC. Debit: Sales Revenue $51,985, Service Revenue $15,380; Credit: Income Summary: $67,365 OD Debit: Sales Revenue $51,985, Service Revenue $15,416; Credit: Income Summary: $67,401 OE. QUESTION 1 The perpetual inventory method allows the company to determine if there has been a loss of inventory - the adjusting entry to record this loss includes a: Debit to Cost of goods sold for $127 OA. Debit to Cost of goods sold for $95 . Credit to Loss for $32 Oc. Credit to Inventory - Books and Gifts for $545 D. Credit to Loss for $127 QUESTION 9 The correct journal entry for transaction #13 is: Debit: Salary Expense $1,000; Credit: Salaries Payable $1,000 DA Debit: Salaries Payable $1,000; Credit: Salary Expense $1,000 (OB Debit: Prepaid Salaries $12,000; Credit: Cash $12,000 Debit: Salaries Expense $1,000; Credit: Cash $1,000 D. No entry is required E. #26 Feb 25: Received a utility bill for $3,100. The bill is due on March 8, 2020. #27 Feb 28: During the last week of February the company reported book and gift sales as follows: Books: Cost: $2,920 Sales Price: $5,255 Gifts: Cost: Sales Price: $619 $1,115 The company collected 20% of total sales in cash, the remainder of the sales were made on credit. #28 Feb 28: During the last week of February the company reported concession sales as follows: Concessions: Cost: $ 903 Sales Price: $1,895 All concession sales were cash sales. 4 #29 Feb 28: Tutoring fees for the remainder of the month totaled $6,020. One half of this balance was paid in cash, the balance was charged to customer's accounts. #30 Feb 28: Paid $26,450 on accounts payable. #31 Feb 28: The Bookstore declared and paid dividends totaling $1,500 to its shareholders. #14 Feb 15: During the second week of February the company reported book and gift sales as follows: Books: Gifts: Cost: Sales Price: $3,120 $7,050 Cost: Sales Price: $998 $1,790 The company collected 30% of total sales in cash, the remainder of the sales were made on credit. #15 Feb 15: During the second week of February the company reported concession sales as follows: Concessions: Cost: Sales Price: $2,600 $4,040 All concession sales were cash sales. #16 Feb 15: Paid employee wages of $11,200. #17 Feb 17: Paid $18,800 on accounts payable. #18 Feb 18: Purchased additional concessions for $2,975. The company paid 80% in cash and put the balance due on account. #19 Feb 19: Sold 12 books to a local book club. The books were sold to each member for $35 cash. The books had been purchased for resale for $18 each. #20 Feb 20: Provided 140 hours of tutoring services to students. The hourly charge was $36. All fees were billed to the customer's accounts. #21 Feb 21: Collected $15,800 on customer accounts. #22 Feb 21: During the third week of February the company reported book and gift sales as follows: Books: Cost: $5,920 Sales Price: $9,086 Gifts: Cost: Sales Price: $662 $904 The company collected 40% of total sales in cash, the remainder of the sales were made on credit. #23 Feb 21: During the third week of February the company reported concession sales as follows: Concessions: Cost: Sales Price: $1,130 $2,900 All concession sales were cash sales. #24 Feb 22: The owners of the Bookstore contributed $44,000 into the company in exchange for common stock. #25 Feb 23: Purchased $230 of supplies on account. #26 Feb 25: Received a utility bill for $3,100. The bill is due on March 8, 2020. #27 Feb 28: During the last week of February the company reported book and gift sales as follows: Transactions #1 Feb. 1: Signed a 12-month maintenance contract with Clean Stores, Inc. to clean the bookstore weekly. Paid $3,000 in advance for 3 months of services. #2 Feb 1: Purchased equipment costing $13,440. The company paid cash and anticipates no salvage value on the equipment. #3 Feb 1: Purchased an 8-month advertising campaign to be broadcast on local radio stations. Paid $7,000 in advance for this ad campaign. #4 Feb 2: Paid employee salaries that were due as of January 31, 2020. #5 Feb 3: The Bookstore made the following purchases: (1) Purchased $12,500 worth of books for resale on account from Wholesale Books. The bill is payable within 30 days. (2) Purchased $800 worth of supplies (shopping bags, cash register tape, etc) from Supply Company Inc. The Bookstore paid cash for this purchase. (3) Purchased concessions (snack products, coffee, energy drinks) from Snacks To Go. The total bill was $4,200. The Bookstore paid one-half down and the balance is due within 45 days. #6 Feb 4: Sold 7 gift certificates for $75 each. The total amount was received in cash. #7 Feb 5: Provided 120 hours of tutoring services to students. The hourly charge was $36. All fees were billed to the customer's accounts. #8 Feb 7: During the first week of February the company reported book and gift sales as follows: Books: Cost: $4,900 Sales Price: $11,600 Gifts: Cost: $970 Sales Price: $2,630 All book sales were made on credit. Gift sales were 40% cash sales, and 60% credit sales. #9 Feb 7: During the first week of February the company reported concession sales as follows: Concessions: Cost: Sales Price: $1,500 $3,100 All concession sales were cash sales. #10 Feb 9: Received $1,700 from customers for payment of accounts. #11 Feb 11: Gift certificates totaling $200 were redeemed for gift merchandise. The cost of the merchandise was $80. #12 Feb. 12: Purchased 150 new paperback books for resale for $9 each. The company paid cash for this purchase. #13 Feb 14: The Bookstore signed a contract to hire a new employee. The terms included salary payments of $12,000 per year. The correct closing entry to close the revenue accounts is: Debit: Sales Revenue $51,985, Service Revenue $15,416; Credit: Income Summary $51,985, Income Summary $15,416 O A. Debit: Sales Revenue $58,005, Service Revenue $9,396; Credit: Income Summary $58,005, Income Summary $9,396 OB. Debit: Sales Revenue $25,447, Service Revenue $15,416; Credit: Income Summary: $40,863 OC. Debit: Sales Revenue $51,985, Service Revenue $15,380; Credit: Income Summary: $67,365 OD Debit: Sales Revenue $51,985, Service Revenue $15,416; Credit: Income Summary: $67,401 OE. QUESTION 1 The perpetual inventory method allows the company to determine if there has been a loss of inventory - the adjusting entry to record this loss includes a: Debit to Cost of goods sold for $127 OA. Debit to Cost of goods sold for $95 . Credit to Loss for $32 Oc. Credit to Inventory - Books and Gifts for $545 D. Credit to Loss for $127 QUESTION 9 The correct journal entry for transaction #13 is: Debit: Salary Expense $1,000; Credit: Salaries Payable $1,000 DA Debit: Salaries Payable $1,000; Credit: Salary Expense $1,000 (OB Debit: Prepaid Salaries $12,000; Credit: Cash $12,000 Debit: Salaries Expense $1,000; Credit: Cash $1,000 D. No entry is required E. #26 Feb 25: Received a utility bill for $3,100. The bill is due on March 8, 2020. #27 Feb 28: During the last week of February the company reported book and gift sales as follows: Books: Cost: $2,920 Sales Price: $5,255 Gifts: Cost: Sales Price: $619 $1,115 The company collected 20% of total sales in cash, the remainder of the sales were made on credit. #28 Feb 28: During the last week of February the company reported concession sales as follows: Concessions: Cost: $ 903 Sales Price: $1,895 All concession sales were cash sales. 4 #29 Feb 28: Tutoring fees for the remainder of the month totaled $6,020. One half of this balance was paid in cash, the balance was charged to customer's accounts. #30 Feb 28: Paid $26,450 on accounts payable. #31 Feb 28: The Bookstore declared and paid dividends totaling $1,500 to its shareholders. #14 Feb 15: During the second week of February the company reported book and gift sales as follows: Books: Gifts: Cost: Sales Price: $3,120 $7,050 Cost: Sales Price: $998 $1,790 The company collected 30% of total sales in cash, the remainder of the sales were made on credit. #15 Feb 15: During the second week of February the company reported concession sales as follows: Concessions: Cost: Sales Price: $2,600 $4,040 All concession sales were cash sales. #16 Feb 15: Paid employee wages of $11,200. #17 Feb 17: Paid $18,800 on accounts payable. #18 Feb 18: Purchased additional concessions for $2,975. The company paid 80% in cash and put the balance due on account. #19 Feb 19: Sold 12 books to a local book club. The books were sold to each member for $35 cash. The books had been purchased for resale for $18 each. #20 Feb 20: Provided 140 hours of tutoring services to students. The hourly charge was $36. All fees were billed to the customer's accounts. #21 Feb 21: Collected $15,800 on customer accounts. #22 Feb 21: During the third week of February the company reported book and gift sales as follows: Books: Cost: $5,920 Sales Price: $9,086 Gifts: Cost: Sales Price: $662 $904 The company collected 40% of total sales in cash, the remainder of the sales were made on credit. #23 Feb 21: During the third week of February the company reported concession sales as follows: Concessions: Cost: Sales Price: $1,130 $2,900 All concession sales were cash sales. #24 Feb 22: The owners of the Bookstore contributed $44,000 into the company in exchange for common stock. #25 Feb 23: Purchased $230 of supplies on account. #26 Feb 25: Received a utility bill for $3,100. The bill is due on March 8, 2020. #27 Feb 28: During the last week of February the company reported book and gift sales as follows: Transactions #1 Feb. 1: Signed a 12-month maintenance contract with Clean Stores, Inc. to clean the bookstore weekly. Paid $3,000 in advance for 3 months of services. #2 Feb 1: Purchased equipment costing $13,440. The company paid cash and anticipates no salvage value on the equipment. #3 Feb 1: Purchased an 8-month advertising campaign to be broadcast on local radio stations. Paid $7,000 in advance for this ad campaign. #4 Feb 2: Paid employee salaries that were due as of January 31, 2020. #5 Feb 3: The Bookstore made the following purchases: (1) Purchased $12,500 worth of books for resale on account from Wholesale Books. The bill is payable within 30 days. (2) Purchased $800 worth of supplies (shopping bags, cash register tape, etc) from Supply Company Inc. The Bookstore paid cash for this purchase. (3) Purchased concessions (snack products, coffee, energy drinks) from Snacks To Go. The total bill was $4,200. The Bookstore paid one-half down and the balance is due within 45 days. #6 Feb 4: Sold 7 gift certificates for $75 each. The total amount was received in cash. #7 Feb 5: Provided 120 hours of tutoring services to students. The hourly charge was $36. All fees were billed to the customer's accounts. #8 Feb 7: During the first week of February the company reported book and gift sales as follows: Books: Cost: $4,900 Sales Price: $11,600 Gifts: Cost: $970 Sales Price: $2,630 All book sales were made on credit. Gift sales were 40% cash sales, and 60% credit sales. #9 Feb 7: During the first week of February the company reported concession sales as follows: Concessions: Cost: Sales Price: $1,500 $3,100 All concession sales were cash sales. #10 Feb 9: Received $1,700 from customers for payment of accounts. #11 Feb 11: Gift certificates totaling $200 were redeemed for gift merchandise. The cost of the merchandise was $80. #12 Feb. 12: Purchased 150 new paperback books for resale for $9 each. The company paid cash for this purchase. #13 Feb 14: The Bookstore signed a contract to hire a new employee. The terms included salary payments of $12,000 per year