AC101_P6

Closing entries.

QN= 137 Journal entries recorded at the end of each accounting period to prepare the revenue, expense, and withdrawals accounts for the upcoming period and to update the owner's capital account for the events of the period just finished are referred to as:

Debit Insurance Expense, $2,400; credit Prepaid Insurance, $2,400.

QN=1 31 The balance in the prepaid insurance account before adjustment at the end of the year is $4,800, which represents the insurance premiums for four months. The premiums were paid on November 1. The adjusting entry required on December 31 is:

$123,000.

QN=1 42 At the beginning of 2009, Beta Company's balance sheet reported Total Assets of $195,000 and Total Liabilities of $75,000. During 2009, the company reported total revenues of $226,000 and expenses of $175,000. Also, owner withdrawals during 2009 totaled $48,000. Assuming no other changes to owner's capital, the balance in the owner's capital account at the end of 2009 would be:

A debit of $33,000 to owner capital.

QN=1 43 After preparing and posting the closing entries to close revenues (and gains) and expenses (and losses) into the income summary, the income summary account has a debit balance of $33,000. The entry to close the income summary account will include:

Revenue

QN=1 44 Which of the following accounts is not increased by a debit?

A debit increases an asset while a credit decrease an asset

QN=1 45 Which of the following statements is true?

Account payable

QN=1 46 Which of the following is a liability?

Expenses decrease Owner's equity

QN=1 47 Which statement is true?

The double entry system requires every transaction to be recorded in at least two places

QN=1 48 Which statement is true?

Asset

QN=1 49 Which of the following accounts

$300,000.

QN=126 On January 1, Southwest College received $1,200,000 in Unearned Tuition Revenue from its students for the spring semester, which spans four months beginning on January 2. What amount of tuition revenue should the college recognize on January 31?

Book Value.

QN=127 The difference between the cost of an asset and the accumulated depreciation for that asset is called

$3,250.

QN=128 A company purchased a new truck at a cost of $42,000 on July 1, 2009. The truck is estimated to have a useful life of 6 years and a salvage value of $3,000. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the truck for the year ended December 31, 2009?

$2,900.

QN=129 A company's Office Supplies account shows a beginning balance of $600 and an ending balance of $400. If office supplies expense for the year is $3,100, what amount of office supplies was purchased during the period?

A debit to Salaries Payable and a credit to Cash.

QN=130 If accrued salaries were recorded on December 31 with a credit to Salaries Payable, the entry to record payment of these wages on the following January 5 would include:

Debit Insurance Expense, $4,500; credit Prepaid Insurance, $4,500.

QN=132 What is the proper adjusting entry at December 31, the end of the accounting period, if the balance in the prepaid insurance account is $7,750 before adjustment, and the unexpired amount per analysis of policies is, $3,250?

$750

QN=133 A company purchased new computers at a cost of $14,000 on September 30, 2010. The computers are estimated to have a useful life of 4 years and a salvage value of $2,000. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the computers for the year ended December 31, 2010?

$1,075

QN=134 The balance in Tee Tax Services' office supplies account on February 1 and February 28 was $1,200 and $375, respectively. If the office supplies expense for the month is $1,900, what amount of office supplies was purchased during February?

Temporary accounts.

QN=135 Revenues, expenses, and withdrawals accounts, which are closed at the end of each accounting period are:

Permanent accounts.

QN=136 Assets, liabilities, and equity accounts are not closed; these accounts are called:

$15,400.

QN=138 The J. Godfrey, Capital account has a credit balance of $17,000 before closing entries are made. If total revenues for the period are $55,200, total expenses are $39,800, and withdrawals are $9,000, what is the ending balance in the J. Godfrey, Capital account after all closing entries are made?

To close the revenue and expense accounts.

QN=139 The Income Summary account is used:

Debit Dina Kader, Withdrawals and credit Dina Kader, Capital for $35,000.

QN=140 Dina Kader withdrew a total of $35,000 from her business during the current year. The entry needed to close the withdrawals account is:

$46,000.

QN=141 At the beginning of 2009, a company's balance sheet reported the following balances: Total Assets = $125,000; Total Liabilities = $75,000; and Owner's Capital = $50,000. During 2009, the company reported revenues of $46,000 and expenses of $30,000. In addition, owner's withdrawals for the year totaled $20,000. Assuming no other changes to owner's capital, the balance in the owner's capital account at the end of 2009 would be:

The assigning or allocating of a fixed asset's cost to expense over the accounting periods that the asset is likely to be used.

QN=150 Depreciation is: