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Posted on Jul 23, 2024

The F. Mercury, Capital account has a credit balance of $41,000 before closing entries are made. Total revenues for the period are $59,200, total expenses

The F. Mercury, Capital account has a credit balance of $41,000 before closing entries are made. Total revenues for the period are $59,200, total expenses are $41,800, and withdrawals are $10,600. What is the correct closing entry for the expense accounts?

Multiple Choice

Credit Expense accounts $41,800; debit F. Mercury, Capital $41,800.
Debit Expense accounts $41,000; credit F. Mercury, Capital $41,000.
Debit Income Summary $41,800; credit F. Mercury Capital $41,800.
Debit Income Summary $41,800; credit Expense accounts $41,800.
Debit Expense accounts $41,800; credit Income Summary $41,800.

On January 1 of the current year, Jimmy's Sandwich Company reported owner's capital totaling $131,500. During the current year, total revenues were $113,000 while total expenses were $102,500. Also, during the current year Jimmy withdrew $37,000 from the company. No other changes in equity occurred during the year. The change in owner's capital during the year was:

Multiple Choice

An increase of $81,500
A decrease of $47,500.
A decrease of $26,500.
An increase of $26,500.
An increase of $47,500.

A company's December 31 work sheet for the current period appears below. Based on the information provided, what is net income for the current period?

	Unadjusted Trial Balance		Adjustments
	Debit	Credit	Debit	Credit
Cash	1,045
Accounts receivable			370
Prepaid insurance	4,300			220
Supplies	250			140
Equipment	12,420
Accumulated depreciationequipment				260
Accounts payable		1,840
Salaries payable				385
Unearned fees		5,200	445
Owner, Capital		10,580
Owner, Withdrawals	2,350
Fees earned		8,160		445
				370
Rent expense	2,200
Salaries expense	2,800		385
Utilities expense	415
Insurance expense			220
Supplies expense			140
Depreciation expenseequipment			260
Totals	25,780	25,780	1,820	1,820

Multiple Choice

$2,900.
$6,700.
$1,820.
$2,555.
$2,745.

On May 31, the Cash account of Teasel had a normal balance of $6,000. During May, the account was debited for a total of $13,200 and credited for a total of $12,500. What was the balance in the Cash account at the beginning of May?

Multiple Choice

A $5,300 credit balance.
A $6,700 credit balance.
A $0 balance.
A $6,700 debit balance.
A $5,300 debit balance.

Charlie's Chocolates' owner made investments of $68,000 and withdrawals of $29,000. The company has revenues of $101,000 and expenses of $73,000. Calculate its net income.

Multiple Choice

$28,000.
$67,000.
$39,000.
$73,000.
$101,000.

f assets are $377,000 and equity is $126,000, then liabilities are:

Multiple Choice

$126,000.
$503,000.
$251,000.
$377,000.
$628,000.

Alpha Company has assets of $606,000, liabilities of $253,000, and equity of $353,000. It buys office equipment on credit for $78,000. What would be the effects of this transaction on the accounting equation?

Multiple Choice

Assets decrease by $78,000 and expenses decrease by $78,000.
Assets increase by $78,000 and liabilities increase by $78,000.
Assets increase by $78,000 and expenses increase by $78,000.
Assets increase by $78,000 and expenses decrease by $78,000.
Liabilities increase by $78,000 and expenses decrease by $78,000.

On September 12, Vander Company sold merchandise in the amount of $6,900 to Jepson Company, with credit terms of 2/10, n/30. The cost of the items sold is $5,100. Vander uses the periodic inventory system and the gross method of accounting for sales. The journal entry or entries that Vander will make on September 12 is (are):

Multiple Choice

Sales 6,900

Accounts receivable 6,900

Cost of goods sold 5,100

Merchandise Inventory 5,100
Accounts receivable 6,900

Sales 6,900

Cost of goods sold 5,100

Merchandise Inventory 5,100
Sales 6,900

Accounts receivable 6,900
Accounts receivable 5,100

Sales 5,100
Accounts receivable 6,900

Sales
6,900