Question :
103.The following information available for the Noir Detective Agency, Inc. : 1258755
103.The following information is available for the Noir Detective Agency, Inc. After these closing entries what will be the balance in the Retained Earnings account?
Net Loss$17,600
Retained earnings289,000
Dividends32,000
$239,400.
B.$274,600.
C.$303,400.
D.$289,000.
E.$257,000.
Ending Retained Earnings Balance = Beginning Retained Earnings Balance – Net Loss – DividendsEnding Retained Earnings Balance = $289,000 – $17,600 – $32,000 = $239,400
104.The Retained Earnings account has a credit balance of $37,000 before closing entries are made. If total revenues for the period are $55,200, total expenses are $39,800, and dividends are $9,000, what is the ending balance in the Retained Earnings account after all closing entries are made?
A.$37,000.
B.$35,400.
$43,400.
D.$28,000.
E.$52,400.
Ending Retained Earnings Balance = Beginning Retained Earnings Balance + Revenues – Expenses – DividendsEnding Retained Earnings Balance = $37,000 + $55,200 – $39,800 – $9,000 = $43,400
105.The Retained Earnings account has a credit balance of $37,000 before closing entries are made. Total revenues for the period are $55,200, total expenses are $39,800, and dividends are $9,000. What is the correct closing entry for the expense accounts?
Debit Income Summary $39,800; credit Expense accounts $39,800.
B.Debit Expense accounts $37,000; credit Retained Earnings $37,000.
C.Credit Expense accounts $39,800; debit Retained Earnings $39,800.
D.Debit Expense accounts $39,800; credit Income Summary $39,800.
E.Debit Income Summary $39,800; credit Retained Earnings $39,800.
106.The Income Summary account is used to:
A.Adjust and update asset and liability accounts.
Close the revenue and expense accounts.
C.Determine the appropriate dividend amount.
D.Replace the income statement under certain circumstances.
E.Replace the retained earnings account in some businesses.
107.The company paid $35,000 cash in dividends to the owner, Jen Rogers. The entry needed to close the dividends account is:
A.Debit Income Summary and credit Cash for $35,000.
B.Debit Dividends and credit Cash for $35,000.
C.Debit Income Summary and credit Dividends for $35,000.
Debit Retained Earnings and credit Dividends for $35,000.
E.Debit Dividends and credit Retained Earnings for $35,000.
108.A company’s ledger accounts and their end-of-period balances before closing entries are posted are shown below. What amount will be posted to Retained Earnings in the process of closing the Income Summary account? (Assume all accounts have normal balances.)
Retained Earnings$7,000
Dividends9,600
Revenue29,000
Rent expense3,600
Salaries expense7,200
Insurance expense920
Depr. Expense-equipment500
Accum. depr.-equipment1,500
A.$16,780 debit.
B.$7,180 credit.
C.$16,780 credit.
$18,280 credit.
E.$23,780 credit.
Items closed to Income Summary:
$29,000Credit
3,600Debit
7,200Debit
920Debit
500Debit
$16,780credit, closed with a debit of $16,780; credit to Retained Earnings
109.It is obvious that an error occurred in the preparation and/or posting of closing entries if:
A.all revenue and expense accounts have zero balances.
B.the retained earnings account is debited for the amount of the net loss for the period.
C.the income summary account is debited for the amount of net income for the period.
all balance sheet accounts have zero balances.
E.only permanent accounts appear on the post-closing trial balance.
110.At the beginning of the year, a company’s balance sheet reported the following balances: Total Assets = $225,000; Total Liabilities = $125,000; and Retained Earnings = $100,000. During the year, the company reported revenues of $46,000 and expenses of $30,000. In addition, dividends for the year totaled $20,000. Assuming no other changes to retained earnings, the balance in the retained earnings account at the end of the year would be:
A.$116,000.
B.$136,000.
C.$24,000.
$96,000.
E.$104,000.
Beginning Retained Earnings $100,000 + Revenues $46,000 – Expenses $30,000 – Dividends $20,000 = Ending Retained Earnings $96,000.
111.After preparing and posting the closing entries for revenues and expenses, the income summary account has a debit balance of $33,000. The entry to close the income summary account will be:
A.Debit Dividends $33,000; credit Income Summary $33,000.
B.Debit Income Summary $33,000; credit Dividends $33,000.
C.Debit Income Summary $33,000; credit Retained Earnings $33,000.
Debit Retained Earnings $33,000; credit Income Summary $33,000.
E.Credit Retained Earnings $33,000; debit Dividends $33,000.
112.The trial balance prepared after all closing entries have been journalized and posted is called the:
A.Unadjusted trial balance.
Post-closing trial balance.
C.General ledger.
D.Adjusted trial balance.
E.Work sheet.
