Question :
121. A summary of selected ledger accounts appear below for Alberto’s : 1247058
121. A summary of selected ledger accounts appear below for Alberto’s Plumbing Services for the 2009 calendar year end.
Retained Earnings
12/31
8,500
1/1
6,500
12/31
18,500
Dividends
6/30
3,500
12/31
8,500
11/30
5,000
Income Summary
12/31
15,000
12/31
33,500
12/31
18,500
Net income for the period is A. $16,500B. $33,500C. $18,500D. $15,000
122. Amir Designs purchased a one-year liability insurance policy on March 1st of this year for $5,400 and recorded it as a prepaid expense. Which of the following amounts would be recorded for insurance expense and prepaid insurance during the closing process at the end of Amir’s first month of operations on March 31st? A. $5,400.B. $540.C. $450.D. $500.
123. The journal entry to close the Fees Earned, $275, and Rent Revenue, $200, accounts on December 31st during the closing process would be: A. Dec 31 Fees Earned 275 Rent Revenue 200 Income Summary 475B. Dec 31 Income Summary 475 Fees Earned 275 Rent Revenue 200C. Dec 31 Revenues 475 Income Summary 475D. Dec 31 Income Summary 475 Revenues 475
124. Use the following worksheet to answer Questions 50-54.
Finley CompanyWorksheetFor the Year Ended December 31, 2010
Adjusted Trial Balance
Income Statement
Balance Sheet
Account Title
Debit
Credit
Debit
Credit
Debit
Credit
Cash
48,000
48,000
Accounts Receivable
18,000
18,000
Supplies
6,000
6,000
Equipment
57,000
57,000
Accumulated Depr-Equip
18,000
18,000
Accounts Payable
30,000
30,000
Wages Payable
6,000
6,000
Capital Stock
4,000
4,000
Retained Earnings
29,000
29,000
Dividends
3,000
3,000
Fees Earned
141,000
141,000
Wages Expense
63,000
63,000
Rent Expense
18,000
18,000
Depreciation Expense
15,000
15,000
Totals
228,000
228,000
96,000
141,000
132,000
87,000
Net Income (Loss)
45,000
45,000
141,000
141,000
132,000
132,000
The journal entry to close revenues would be: A. debit Income Summary $141,000, credit Fees Earned $141,000B. debit Retained Earnings $141,000, credit Fees Earned $141,000C. debit Fees Earned $141,000; credit Income Summary $141,000D. credit Fees Earned $141,000; credit Capital Stock $141,000
125. Use the following worksheet to answer Questions 50-54.
Finley CompanyWorksheetFor the Year Ended December 31, 2010
Adjusted Trial Balance
Income Statement
Balance Sheet
Account Title
Debit
Credit
Debit
Credit
Debit
Credit
Cash
48,000
48,000
Accounts Receivable
18,000
18,000
Supplies
6,000
6,000
Equipment
57,000
57,000
Accumulated Depr-Equip
18,000
18,000
Accounts Payable
30,000
30,000
Wages Payable
6,000
6,000
Capital Stock
4,000
4,000
Retained Earnings
29,000
29,000
Dividends
3,000
3,000
Fees Earned
141,000
141,000
Wages Expense
63,000
63,000
Rent Expense
18,000
18,000
Depreciation Expense
15,000
15,000
Totals
228,000
228,000
96,000
141,000
132,000
87,000
Net Income (Loss)
45,000
45,000
141,000
141,000
132,000
132,000
Based on the preceding trial balance, the entry to close expenses would be: A. Wages Expense 63,000Rent Expense 18,000Depreciation Expense 15,000 Income Summary 96,000B. Expenses 96,000 Income Summary 96,000C. Wages Expense 63,000Rent Expense 18,000Depreciation Expense 15,000 Retained Earnings 96,000D. Income Summary 96,000 Wages Expense 63,000 Rent Expense 18,000 Depreciation Expense 15,000
126. Use the following worksheet to answer Questions 50-54.
Finley CompanyWorksheetFor the Year Ended December 31, 2010
Adjusted Trial Balance
Income Statement
Balance Sheet
Account Title
Debit
Credit
Debit
Credit
Debit
Credit
Cash
48,000
48,000
Accounts Receivable
18,000
18,000
Supplies
6,000
6,000
Equipment
57,000
57,000
Accumulated Depr-Equip
18,000
18,000
Accounts Payable
30,000
30,000
Wages Payable
6,000
6,000
Capital Stock
4,000
4,000
Retained Earnings
29,000
29,000
Dividends
3,000
3,000
Fees Earned
141,000
141,000
Wages Expense
63,000
63,000
Rent Expense
18,000
18,000
Depreciation Expense
15,000
15,000
Totals
228,000
228,000
96,000
141,000
132,000
87,000
Net Income (Loss)
45,000
45,000
141,000
141,000
132,000
132,000
Based on the preceding trial balance, the entry to close income summary would be: A. debit Retained Earnings $45,000; credit Income Summary $45,000B. debit Income Summary $141,000; credit Retained Earnings $141,000C. debit Income Summary $45,000, credit Retained Earnings $45,000D. debit Retained Earnings $9,000; credit Income Summary $9,000
127. Use the following worksheet to answer Questions 50-54.
Finley CompanyWorksheetFor the Year Ended December 31, 2010
Adjusted Trial Balance
Income Statement
Balance Sheet
Account Title
Debit
Credit
Debit
Credit
Debit
Credit
Cash
48,000
48,000
Accounts Receivable
18,000
18,000
Supplies
6,000
6,000
Equipment
57,000
57,000
Accumulated Depr-Equip
18,000
18,000
Accounts Payable
30,000
30,000
Wages Payable
6,000
6,000
Capital Stock
4,000
4,000
Retained Earnings
29,000
29,000
Dividends
3,000
3,000
Fees Earned
141,000
141,000
Wages Expense
63,000
63,000
Rent Expense
18,000
18,000
Depreciation Expense
15,000
15,000
Totals
228,000
228,000
96,000
141,000
132,000
87,000
Net Income (Loss)
45,000
45,000
141,000
141,000
132,000
132,000
Based on the preceding trial balance, the entry to close Dividends would be: A. debit Retained Earnings $3,000, credit Dividends $3,000B. debit Retained Earnings $12,000, credit Dividends $12,000C. debit Dividends $3,000; credit Retained Earnings $3,000D. debit Dividends $12,000; credit Retained Earnings $12,000
128. Use the following worksheet to answer Questions 50-54.
Finley CompanyWorksheetFor the Year Ended December 31, 2010
Adjusted Trial Balance
Income Statement
Balance Sheet
Account Title
Debit
Credit
Debit
Credit
Debit
Credit
Cash
48,000
48,000
Accounts Receivable
18,000
18,000
Supplies
6,000
6,000
Equipment
57,000
57,000
Accumulated Depr-Equip
18,000
18,000
Accounts Payable
30,000
30,000
Wages Payable
6,000
6,000
Capital Stock
4,000
4,000
Retained Earnings
29,000
29,000
Dividends
3,000
3,000
Fees Earned
141,000
141,000
Wages Expense
63,000
63,000
Rent Expense
18,000
18,000
Depreciation Expense
15,000
15,000
Totals
228,000
228,000
96,000
141,000
132,000
87,000
Net Income (Loss)
45,000
45,000
141,000
141,000
132,000
132,000
Based on the preceding trial balance, the ending balance in Retained Earnings is: A. $29,000B. $71,000C. $42,000D. $77,000
129. The proper sequence for the steps in the accounting cycle is a follows A. analyze and record transactions, post transaction to the ledger, prepare a trial balance, prepare financial statements, journalize closing entries, analyze adjustment data and prepare adjusting entriesB. prepare a trial balance, analyze adjustment data, prepare adjusting entries, prepare financial statements, journalize closing entries and post to the ledger, analyze and record transactions, post transactions to the ledger,C. analyze and record transactions, post transactions to the ledger, prepare a trial balance, analyze adjustment data, prepare adjusting entries, prepare financial statements, journalize closing entries and post to the ledgerD. prepare financial statements, journalize closing entries and post to the ledger, analyze and record transactions, post transactions to the ledger, prepare a trial balance, analyze adjustment data, prepare adjusting entries,
130. The following are steps to the accounting cycle. Of the following, which step should be done first? A. Closing entries are journalized and posted to the ledger.B. Transactions are posted to the ledger.C. Adjusting entries are journalized and posted to the ledger.D. Financial statements are prepared.
