78. The income statement for the month of June, 2011 of Ramirez Enterprises contains the following information:
Revenues$7,000
Expenses:
Wages Expense$2,000
Rent Expense1,000
Supplies Expense300
Advertising Expense200
Insurance Expense 100
Total expenses 3,600
Net income$3,400
The entry to close Income Summary to Retained Earnings includes
a.a debit to Revenue for $7,000.
b.credits to Expenses totalling $3,600.
c.a credit to Income Summary for $3,400
d.a credit to Retained Earnings for $3,400.
79. The income statement for the month of June, 2011 of Ramirez Enterprises contains the following information:
Revenues$7,000
Expenses:
Wages Expense$2,000
Rent Expense1,000
Supplies Expense300
Advertising Expense200
Insurance Expense 100
Total expenses 3,600
Net income$3,400
At June 1, 2011, Ramirez reported Retained Earnings of $35,000. The company paid no dividends during June. At June 30, 2011, the company will report Retained Earnings of
a.$35,000.
b.$42,000.
c.$38,400.
d.$31,600.
80. The income statement for the year 2011 of Poole Co. contains the following information:
Revenues$70,000
Expenses:
Wages Expense$45,000
Rent Expense12,000
Advertising Expense6,000
Supplies Expense6,000
Utilities Expense2,500
Insurance Expense 2,000
Total expenses 73,500
Net income (loss)$(3,500)
The entry to close the revenue account includes a
a.debit to Income Summary for $3,500.
b.credit to Income Summary for $3,500.
c.debit to Revenues for $70,000.
d.credit to Revenues for $70,000.
81. The income statement for the year 2011 of Poole Co. contains the following information:
Revenues$70,000
Expenses:
Wages Expense$45,000
Rent Expense12,000
Advertising Expense6,000
Supplies Expense6,000
Utilities Expense2,500
Insurance Expense 2,000
Total expenses 73,500
Net income (loss)$(3,500)
The entry to close the expense accounts includes a
a.debit to Income Summary for $3,500.
b.credit to Income Summary for $3,500.
c.debit to Income Summary for $73,500.
d.debit to Wages Expense for $2,500.
82. The income statement for the year 2011 of Poole Co. contains the following information:
Revenues$70,000
Expenses:
Wages Expense$45,000
Rent Expense12,000
Advertising Expense6,000
Supplies Expense6,000
Utilities Expense2,500
Insurance Expense 2,000
Total expenses 73,500
Net income (loss)$(3,500)
Multiple Choice 82. (cont.)
After the revenue and expense accounts have been closed, the balance in Income Summary will be
a.$0.
b.a debit balance of $3,500.
c.a credit balance of $3,500.
d.a credit balance of $70,000.
83. The income statement for the year 2011 of Poole Co. contains the following information:
Revenues$70,000
Expenses:
Wages Expense$45,000
Rent Expense12,000
Advertising Expense6,000
Supplies Expense6,000
Utilities Expense2,500
Insurance Expense 2,000
Total expenses 73,500
Net income (loss)$(3,500)
The entry to close Income Summary to Retained Earnings includes
a.a debit to Revenue for $70,000.
b.credits to Expenses totalling $73,500.
c.a credit to Income Summary for $3,500.
d.a credit to Retained Earnings for $3,500.
84. The income statement for the year 2011 of Poole Co. contains the following information:
Revenues$70,000
Expenses:
Wages Expense$45,000
Rent Expense12,000
Advertising Expense6,000
Supplies Expense6,000
Utilities Expense2,500
Insurance Expense 2,000
Total expenses 73,500
Net income (loss)$(3,500)
At January 1, 2011, Poole reported Retained Earnings of $50,000. Dividends for the year totalled $10,000. At December 31, 2011, the company will report Retained Earnings of
a.$13,500.
b.$36,500.
c.$40,000.
d.$43,500.
85. The income statement for the year 2011 of Poole Co. contains the following information:
Revenues$70,000
Expenses:
Wages Expense$45,000
Rent Expense12,000
Advertising Expense6,000
Supplies Expense6,000
Utilities Expense2,500
Insurance Expense 2,000
Total expenses 73,500
Net income (loss)$(3,500)
After all closing entries have been posted, the Income Summary account will have a balance of
a.$0.
b.$3,500 debit.
c.$3,500 credit.
d.$36,500 credit.
86. The income statement for the year 2011 of Poole Co. contains the following information:
Revenues$70,000
Expenses:
Wages Expense$45,000
Rent Expense12,000
Advertising Expense6,000
Supplies Expense6,000
Utilities Expense2,500
Insurance Expense 2,000
Total expenses 73,500
Net income (loss)$(3,500)
After all closing entries have been posted, the revenue account will have a balance of
a.$0.
b.$70,000 credit.
c.$70,000 debit.
d.$3,500 credit.
87. A post-closing trial balance is prepared
a.after closing entries have been journalized and posted.
b.before closing entries have been journalized and posted.
c.after closing entries have been journalized but before the entries are posted.
d.before closing entries have been journalized but after the entries are posted.