Question
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
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Credit Expense accounts $41,800; debit F. Mercury, Capital $41,800.
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Debit Expense accounts $41,000; credit F. Mercury, Capital $41,000.
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Debit Income Summary $41,800; credit F. Mercury Capital $41,800.
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Debit Income Summary $41,800; credit Expense accounts $41,800.
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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
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An increase of $81,500
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A decrease of $47,500.
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A decrease of $26,500.
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An increase of $26,500.
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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
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$2,900.
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$6,700.
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$1,820.
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$2,555.
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$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
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A $5,300 credit balance.
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A $6,700 credit balance.
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A $0 balance.
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A $6,700 debit balance.
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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
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$28,000.
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$67,000.
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$39,000.
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$73,000.
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$101,000.
f assets are $377,000 and equity is $126,000, then liabilities are:
Multiple Choice
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$126,000.
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$503,000.
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$251,000.
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$377,000.
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$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
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Assets decrease by $78,000 and expenses decrease by $78,000.
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Assets increase by $78,000 and liabilities increase by $78,000.
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Assets increase by $78,000 and expenses increase by $78,000.
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Assets increase by $78,000 and expenses decrease by $78,000.
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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
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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.
Group startsTrue or False
True, unselectedFalse, unselected
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