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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

A company had net sales of $575,000 and cost of goods sold of $360,000. Its gross margin equals $935,000.

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