36) Which of the following accounts will still show a balance after the closing process is completed?
A) The Dividends account
B) The Expense accounts
C) The Accumulated depreciation account
D) The Service revenue account
37) What is the result if the amount of net income for the year is less than the amount of the dividends paid?
A) The Retained earnings account increases.
B) The amount of the Cash account decreases.
C) The amount of the Cash account increases.
D) The Retained earnings account decreases.
38) Which account has a balance equal to net income immediately before it is closed?
A) The Income summary account
B) The Dividends account
C) The Net income account
D) The Retained earnings account
39) Net income for the year is $25,000. Dividends of $36,000 per were paid at the end of the year. Which of the following occurs?
A) The Retained earnings account decreases by $22,000.
B) The Retained earnings account decreases by $11,000.
C) The Retained earnings account increases by $11,000.
D) The Retained earnings account increases by $22,000.
40) Which of the following entries will be necessary to close the insurance expense account at the end ofthe year?
A) Debit Insurance expense and credit Income summary.
B) Debit Insurance expense and credit Retained earnings.
C) Debit Retained earnings and credit Insurance expense.
D) Debit Income summary and credit Insurance expense.
41) The following is the adjusted trial balance for Tuttle Photography.
Accounts
|
Debit
|
Credit
|
Cash
|
$15,000
|
|
Accounts receivable
|
30,000
|
|
Prepaid insurance
|
7,500
|
|
Office supplies
|
3,200
|
|
Land
|
40,000
|
|
Building
|
160,000
|
|
Accumulated depreciation
|
|
$12,000
|
Equipment
|
75,000
|
|
Accumulated depreciation
|
|
8,500
|
Accounts payable
|
|
12,000
|
Salaries payable
|
|
2,000
|
Unearned service revenue
|
|
25,000
|
Mortgage payable
|
|
100,000
|
Common stock
|
|
10,000
|
Retained earnings
|
|
11,290
|
Dividends
|
23,000
|
|
Service revenue
|
|
289,000
|
Salaries expense
|
61,000
|
|
Depreciation expense
|
6,150
|
|
Supplies expense
|
14,040
|
|
Insurance expense
|
14,000
|
|
Utilities expense
|
20,900
|
|
|
$469,790
|
$469,790
|
After the closing entries, what will the final balance in Retained earnings be?
A) $207,200
B) $184,200
C) $416,380
D) $161,200
42) Please refer to the following adjusted trial balance. What will the final ending balance in the Retained earnings account be after posting the closing entries?
Account Title
|
Debit
|
Credit
|
Cash
|
$1,700
|
|
Accounts receivable
|
8,500
|
|
Supplies
|
100
|
|
Equipment
|
7,500
|
|
Accumulated depreciation
|
|
$2,000
|
Accounts payable
|
|
1,200
|
Salary payable
|
|
800
|
Unearned revenue
|
|
600
|
Common stock
|
|
1,000
|
Retained earnings
|
|
2,400
|
Dividends
|
2,300
|
|
Service revenue
|
|
40,000
|
Salary expense
|
24,000
|
|
Supplies expense
|
2,300
|
|
Depreciation expense
|
1,600
|
|
|
$48,000
|
$48,000
|
A) $12,200
B) $14,500
C) $16,800
D) $10,200
43) The following is the adjusted trial balance for Tuttle Photography.
Accounts
|
Debit
|
Credit
|
Cash
|
$15,000
|
|
Accounts receivable
|
30,000
|
|
Prepaid insurance
|
7,500
|
|
Office supplies
|
3,200
|
|
Land
|
40,000
|
|
Building
|
160,000
|
|
Accumulated depreciation
|
|
$12,000
|
Equipment
|
75,000
|
|
Accumulated depreciation
|
|
8,500
|
Accounts payable
|
|
12,000
|
Salaries payable
|
|
2,000
|
Unearned service revenue
|
|
25,000
|
Mortgage payable
|
|
100,000
|
Common stock
|
|
10,000
|
Retained earnings
|
|
11,290
|
Dividends
|
23,000
|
|
Service revenue
|
|
289,000
|
Salaries expense
|
61,000
|
|
Depreciation expense
|
6,150
|
|
Supplies expense
|
14,040
|
|
Insurance expense
|
14,000
|
|
Utilities expense
|
20,900
|
|
|
$469,790
|
$469,790
|
Using the information from the worksheet above, prepare the closing entry for Revenues.