ACC101 Chapter 4

Accounts that need to be closed at the end of each accounting period, including Revenues, expenses, and withdrawals, are called:

• a. Real accounts.

• b. Temporary accounts.

• c. Closing accounts.

• d. Permanent accounts.

Assets, liabilities, and capital accounts are not closed at the end of an accounting period.

These accounts are called:

• a. Nominal accounts.

• b. Temporary accounts.

• c. Permanent accounts.

• d. Contra accounts.

Capital account has a credit balance of $17,000 before closing entries are made.

For the period, revenues are $55,200, expenses are $39,800, and withdrawals are $9,000.

What is the ending balance of the Capital account after all closing entries are made?

• a. $ 8,000.

• b. $15,400.

• c. $23,400.

• d. $17,000.

• e. $32,400.

Prepare the necessary closing entries, knowing that:

Asset : $30,000

Revenue: $15,000

Unearned revenue: $3,000

• a. Debit Income summary: $18,000

  Credit Revenue: $15,000

  Credit Unearned Revenue: $3,000

• b. Debit Income summary: $3,000

  Credit Unearned Revenue: $3,000

• c. Debit Income summary: $15,000

  Credit Revenue: $15,000

• d. Debit Revenue: $15,000

  Debit Unearned Revenue: $3,000

  Credit Income summary: $18,000

• e. Debit Revenue: $15,000

  Credit Income summary: $15,000

Which accounts don't need to do closing entries?

• a. Rent Revenue

• b. Salaries Expense

• c. Income Summary

• d. Withdrawals

• e. Salaries payable

The adjusted trial balance of a company has the following information:

Assets $250,000

Liabilities $120,000

Salaries expense $10,000

Rent expense $20,000

Choose the correct closing entries:

• Debit Salaries expense $10,000

  Debit Rent expense $20,000

  Credit Income Summary $30,000

• Debit Income Summary $30,000

  Credit Salaries expense $10,000

  Credit Rent expense $20,000

• Debit Income Summary $30,000

  Credit Total expense $30,000

• Debit Capital $30,000

  Credit Salaries expense $10,000

  Credit Rent expense $20,000

The company has the following balances of temporary accounts:

Consulting Revenue $7,000

Salaries expense $3,000

Assume the company has prepared closing entries for Revenue and Expense.

Choose the closing entries for Income summary

• Debit Income Summary $4,000

  Credit Capital $4,000

• Debit Capital $4,000

  Credit Income Summary $4,000

• Debit Income Summary $7,000

  Credit Capital $7,000

• Debit Income Summary $3,000

  Credit Capital $3,000

Withdrawals had balance of $2,000. The closing entries to close the withdrawals account are:

• a. Debit Income Summary and credit Cash for $2,000.

• b. Debit Withdrawals and credit Cash for $2,000.

• c. Debit Income Summary and credit Withdrawals for $2,000.

• d. Debit Capital and credit Withdrawals for $2,000.

• e. Debit Withdrawals and credit Capital for $2,000.

The entries that resets revenue, expense and withdrawal account balances to zero at the end of the period

• a. Adjusting entries

• b. Closing entries

• c. Recording transaction

• d. Prepare trial balance

Choose the accounts that need closing entries:

• a. Asset, withdrawal, income summary, revenue

• b. Revenue, asset, withdrawal, income summary

• c. Revenue, expense, liability, income summary

• d. Revenue, expense, withdrawal, income summary