121.Use this adjusted trial balance to answer the following question.
Dan’s Marina
Adjusted Trial Balance
December 31, 20×7
Cash
$ 2,500
Accounts Receivable
3,500
Supplies
1,500
Prepaid Insurance
2,500
Dock
12,000
Accumulated Depreciation–Dock
$ 3,000
Accounts Payable
6,000
Common Stock
10,000
Dividends
4,000
Boat Rentals
17,000
Depreciation Expense–Dock
1,000
Wages Expense
6,500
Insurance Expense
2,000
Income Taxes Expense
500
$36,000
$36,000
The amount of net income (or net loss) during the period is
a.
$4,500 net income.
b.
$7,000 net income.
c.
$16,000 net income.
d.
$5,000 net loss.
122.Use this adjusted trial balance to answer the following question.
Dan’s Marina
Adjusted Trial Balance
December 31, 20×7
Cash
$ 2,500
Accounts Receivable
3,500
Supplies
1,500
Prepaid Insurance
2,500
Dock
12,000
Accumulated Depreciation–Dock
$ 3,000
Accounts Payable
6,000
Common Stock
10,000
Dividends
4,000
Boat Rentals
17,000
Depreciation Expense–Dock
1,000
Wages Expense
6,500
Insurance Expense
2,000
Income Taxes Expense
500
$36,000
$36,000
The entry to close Income Summary includes a
a.
debit to Income Summary for $7,000.
b.
credit to Common Stock for $8,000.
c.
debit to Retained Earnings for $16,000.
d.
credit to Income Summary for $12,000.
123.Which account bypasses the Income Summary account in the closing process?
a.
Dividends
b.
Wages Expense
c.
Revenue from Services
d.
Depreciation Expense–Building
124.Closing entries will
a.
not affect the Retained Earnings balance.
b.
increase the Retained Earnings balance.
c.
most likely either increase or decrease the Retained Earnings balance.
d.
decrease the Retained Earnings balance.
125.The post-closing trial balance would not include which of the following accounts?
a.
Accumulated Depreciation–Office Equipment
b.
Dividends
c.
Retained Earnings
d.
Unearned Legal Fees
126.The post-closing trial balance differs from the adjusted trial balance in that it does not
a.
take into account closing entries.
b.
contain balance sheet accounts.
c.
contain income statement accounts.
d.
take into account adjusting entries.
127.The post-closing trial balance contains
a.
neither real accounts nor nominal accounts.
b.
both real accounts and nominal accounts.
c.
real accounts only.
d.
nominal accounts only.
128.Which of the following accounts might appear in the adjusted trial balance but not in the post-closing trial balance?
a.
Retained Earnings
b.
Depreciation Expense–Building
c.
Income Summary
d.
Unearned Revenue
129.Probably the last account to be listed on a post-closing trial balance would be
a.
Wages Payable.
b.
Income Summary.
c.
Retained Earnings.
d.
Wages Expense.
130.If no adjustments are needed for a particular company, its
a.
post-closing trial balance will be identical to its trial balance.
b.
trial balance will be identical to its adjusted trial balance.
c.
trial balance, adjusted trial balance, and post-closing trial balance will be identical.
d.
adjusted trial balance will be identical to its post-closing trial balance.
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