26 m smuts showed a net income of 6 000 the entry to close the income summary accoun 4302967

 

26) M. Smuts showed a net income of $6,000. The entry to close the Income Summary account would include a:

A) debit to M. Smuts Capital, $6,000.

B) credit to M. Smuts Capital, $6,000.

C) debit to Income Summary, $6,000.

D) Both B and C are correct.

 

27) J. Oros showed a net loss of $3,200. The entry to close the Income Summary account would include a:

A) debit to Oros, Capital, $3,200.

B) debit to Income Summary , $3,200.

C) credit to Oros, Capital, $3,200.

D) credit to Cash, $3,200.

 

28) The balance in the J. Higgins, Withdrawals account was $4,200. The entry to close the account would include a:

A) debit to Income Summary, $4,200.

B) credit to Income Summary, $4,200.

C) debit to J. Higgins, Capital, $4,200.

D) debit to J. Higgins, Withdrawals, $4,200.

29) The balance in the Rent Expense account on the worksheet was $120. The journal entry to close the Rent Expense account is:

A)

Rent Expense	120
Prepaid Rent	120

 

B)

Rent Expense	120
Income Summary	120

 

C)

Rent Expense	120
Capital	120

 

D)

Income Summary	120
Rent Expense	120

 

 

30) B. Benson's worksheet showed the revenue account, Rental Fees, $1,300. The journal entry to close the account is:

A)

Rental Fees	1,300
Income Summary	1,300

 

B)

Benson, Capital	1,300
Rental Fees	1,300

 

C)

Rental Fees	1,300
Benson, Capital	1,300

 

D)

Income Summary	1,300
Rental Fees	1,300

 

 

31) The Income Summary account shows debits of $19,000 and credits of $10,000. This results in a:

A) net income of $29,000.

B) net loss of $29,000.

C) net income of $9,000.

D) net loss of $9,000.

32) After closing the revenue, expense, and withdrawal accounts, the capital increased by $2,000. Which of the following situations could have occurred?

A) The company had a net income.

B) The owner invested an additional amount.

C) The owner made a withdrawal.

D) All of these answers are correct.

 

33) The income statement credit column of the worksheet showed the following revenues:

 

Catering Fees	$500
Cleaning Fees	800

 

The journal entry to close the revenue accounts is:

A)

Income Summary	1,300
Catering Fees	500
Cleaning Fees	800

 

B)

Catering Fees	500
Cleaning Fees	800
Income Summary	1,300

 

C)

Capital	1,300
Income Summary	1,300

 

D)

Catering Fees	500
Cleaning Fees	800
Capital	1,300

 

 

34) The business failed to close any of the revenue accounts. The result of this error is that:

A) revenues will be understated.

B) capital will be understated.

C) the assets will be overstated.

D) the liabilities will be overstated.

35) The entry to close the expense account(s) was entered in reverse—Income Summary was credited and the expense account(s) was/were debited. The result of this error is that:

A) before closing it, Income Summary will have a credit balance.

B) before closing it, Income Summary will have a debit balance.

C) the assets will be overstated.

D) the liabilities will be overstated.