Question : 91. In the process of completing a work sheet, you determine : 1225768

91. In the process of completing a work sheet, you determine that the Income Statement debit column totals $83,000, while the Income Statement credit column totals $65,000. To enter net income (or net loss) for the period into the work sheet would require an entry to 

A. the Adjustments debit column and the Adjustments credit column.

B. the Unadjusted Trial Balance debit column and the Adjustments credit column.

C. it is not practical to enter Net Income (or Net Loss) on the work sheet.

D. the Balance Sheet & Statement of Owner’s Equity debit column and the Income Statement credit column.

E. the Income Statement debit column and the Balance Sheet & Statement of Owner’s Equity credit column.

92. The special account used only in the closing process to temporarily hold the amounts of revenues and expenses before the net difference is added to (or subtracted from) the owner’s capital account is the: 

A. Income Summary account.

B. Closing account.

C. Balance column account.

D. Contra account.

E. Nominal account.

93. J. Awn, the proprietor of Awn Services, withdrew $8,700 from the business during the current year. The entry to close the withdrawals account at the end of the year is: 

A. Debit J. Awn, Withdrawals $8,700; credit Cash, $8,700

B. Debit J. Awn, Capital $8,700; credit J. Awn, Withdrawals $8,700

C. Debit J. Awn, Withdrawals $8,700; credit J. Awn, Capital $8,700

D. Debit J. Awn, Capital $8,700, credit Salary Expense $8,700

E. Debit Income Summary $8,700; credit J. Awn, Capital $8,700

94. A company had revenues of $75,000 and expenses of $62,000 for the accounting period. The owner withdrew $8,000 in cash during the same period. Which of the following entries could not be a closing entry? 

A. Debit Income Summary $13,000; credit Owner’s, Capital $13,000.

B. Debit Income Summary $75,000; credit Revenues $75,000.

C. Debit Revenues $75,000; credit Income Summary $75,000.

D. Debit Income Summary $62,000, credit Expenses $62,000.

E. Debit Owner’s, Capital $8,000, credit Owner’s, Withdrawals $8,000.

95. The following information is available for the Travis Travel Agency. After these closing entries what will be the balance in the Jay Travis, Capital account?

A. $65,000.

B. $80,000.

C. $130,000.

D. $145,000.

E. $280,000.

96. 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? 

A. $8,000.

B. $15,400.

C. $23,400.

D. $17,000.

E. $32,400.

97. The Income Summary account is used: 

A. To adjust and update asset and liability accounts.

B. To close the revenue and expense accounts.

C. To determine the appropriate withdrawal amount.

D. To replace the income statement under certain circumstances.

E. To replace the capital account in some businesses.

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

A. Debit Income Summary and credit Cash for $35,000.

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

C. Debit Income Summary and credit Dina Kader, Withdrawals for $35,000.

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

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

99. 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 Tricia DeBarre, Capital in the process of closing the Income Summary account? (Assume all accounts have normal balances.)

A. $16,780 debit.

B. $7,180 credit.

C. $16,780 credit.

D. $18,280 credit.

E. $23,780 credit.

100. 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 owner’s capital 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.

D. all balance sheet accounts have zero balances.

E. only permanent accounts appear on the post-closing trial balance.