Question :
93.Which of the following errors would cause the Balance Sheet columns : 1258754
93.Which of the following errors would cause the Balance Sheet columns of a work sheet to be out of balance?
A.Entering an asset amount in the Income Statement Debit column.
B.Entering a liability amount in the Income Statement Credit column.
C.Entering an expense amount in the Balance Sheet Debit column.
Entering a revenue amount in the Balance Sheet Debit column.
E.Entering a liability amount in the Balance Sheet Credit column.
94.The Unadjusted Trial Balance columns of a work sheet total $84,000. The Adjustments columns contain entries for the following: 1. Office supplies used during the period, $1,200. 2. Expiration of prepaid rent, $700. 3. Accrued salaries expense, $500. 4. Depreciation expense, $800. 5. Accrued service fees receivable, $400. The Adjusted Trial Balance columns total is:
A.$80,400.
B.$84,000.
$85,700.
D.$85,900.
E.$87,600.
DebitCredit
Balance$84,000$84,000
1. Supplies Expense$1,200
Supplies(1,200)
2. Rent Expense700
Prepaid rent(700)
3. Salaries Expense500
Salaries payable500
4. Depr. Expense800
Accum. Depr.800
5. Accts. Receivable400
Fees earned400
Adjusted total$85,700$85,700
95.The balances in the unadjusted columns of a work sheet will agree with:
A.the balances reflected in the company’s financial statements.
the balances reflected in the company’s unadjusted trial balance.
C.whatever balances management has decided to report.
D.the balances in the company’s post-closing trial balance.
E.the balances management budgeted for the accounting period.
96.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 retained earnings account is the:
Income Summary account.
B.Closing account.
C.Balance column account.
D.Contra account.
E.Nominal account.
97.K. Canopy, the stockholder of Canopy Services, Inc., The company paid $5,700 cash in dividends to the owner (sole stockholder). The entry to close the dividends account at the end of the year is:
A.Debit Dividends $5,700; credit Cash, $5,700
Debit Retained Earnings $5,700; credit Dividends $5,700
C.Debit Dividends $5,700; credit Retained Earnings $5,700
D.Debit Retained Earnings $5,700; credit Salary Expense $5,700
E.Debit Income Summary $5,700; credit Retained Earnings $5,700
98.Tara Westmont, the stockholder of Tiptoe Shoes, Inc., had annual revenues of $185,000, expenses of $103,700, The company paid $18,000 cash in dividends to the owner (sole stockholder). The retained earnings account before closing had a balance of $297,000. The entry to close the Income Summary account at the end of the year, after revenue and expense accounts have been closed, is:
A.Debit Retained Earnings $297,000; credit Income Summary $297,000
B.Debit Retained Earnings $63,300; credit Income Summary $63,300
C.Debit Income Summary $63,300; credit Retained Earnings $63,300
Debit Income Summary $81,300; credit Retained Earnings $81,300
E.Debit Retained Earnings $81,300; credit Income Summary $81,300
99.Tara Westmont, the stockholder of Tiptoe Shoes, Inc., had annual revenues of $185,000, expenses of $103,700, and the company paid $18,000 cash in dividends to the owner (sole shareholder). The retained earnings account before closing had a balance of $297,000. The Net Income for the year is:
A.$185,000
B.$63,300
$81,300
D.$360,300
E.$378,300
Revenues $185,000 – Expenses $103,700 = Net Income $81,300
100.Tara Westmont, the stockholder of Tiptoe Shoes, Inc., had annual revenues of $185,000, expenses of $103,700, and the company paid $18,000 cash in dividends to the owner (sole stockholder). The retained earnings account before closing had a balance of $297,000. The ending retained earnings balance after closing is:
A.$185,000
B.$63,300
C.$81,300
$360,300
E.$378,300
Beginning Retained Earnings + Revenues – Expenses – Dividends = Ending Retained Earnings$297,000 + 185,000 – 103,700 – $18,000 = $360,300
101.A company had revenues of $75,000 and expenses of $62,000 for the accounting period. The company paid $8,000 cash in dividends to the owner (sole shareholder). Which of the following entries could not be a closing entry?
A.Debit Income Summary $13,000; credit Retained Earnings $13,000.
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 Retained Earnings $8,000; credit Dividends $8,000.
102.The following information is available for the Higgins Travel Agency, Inc. After these closing entries what will be the balance in the Retained Earnings account?
Net Income$42,500
Retained earnings130,000
Dividends12,000
A.$75,500.
B.$184,500.
C.$99,500.
$160,500.
E.$130,000.
Ending Retained Earnings Balance = Beginning Retained Earnings Balance + Net Income – DividendsEnding Retained Earnings Balance = $130,000 + $42,500 – $12,000 = $160,500
