11. The post closing trial balancewill include revenue or expense accounts. True
ID: 2457987 • Letter: 1
Question
11. The post closing trial balancewill include revenue or expense accounts.
True False
12. If the unearned revenue account hadan unadjusted normal balance of $4,800 and an adjustment was madedebiting the account for $1,500, the account would appear on theadjusted trial balance of the work sheet as a :
a) $3,300 debit
b) $3,300 credit
c) $4,800 credit
d) $4,800 debit
13. The owner’s capital accountwith a normal balance would be extended to which column on the worksheet:
a) debit column on the balancesheet
b) credit column on the balancesheet
c) debit column on the incomestatement
d) credit column on the incomestatement
14. During the closing process, revenueand expense account balances are first transferred to an accountentitled:
a) revenue summary
b) expense summary
c) capital summary
d) income summary
15. Which of the following are alltemporary accounts?
A) Revenues, expenses, andcapital
b) revenues, expenses, andwithdrawals
c) assets, liabilities, andcapital
d) assets, liabilities, andwithdrawals
16. Another name for temporary accountsis
A) permanent accounts
B) real accounts
C) current accounts
D) nominal accounts
17-20 Debit Credit
Owners Withdrawal $10,000
Sales $150,000
RentExpense 22,000
SuppliesExpense 11,000
SalariesExpense 6,000
The aboveinformation relates to a partial trial balance forthe month of January for Joe Happy Electrician. Prepare ALLthe closing entries necessary for the month of January. (Note:this trial balance is not intended to balance, I have only suppliedyou with the accounts that you will actually need.)
Bonus
1. Explain the purpose of adjusting entries
2. Explain the purpose of a worksheet and how to prepareone.
Explanation / Answer
11
12
13
14
15
16
17
1
2
11
FALSE12
B. $3300 Credit13
B. credit column of balance sheet14
D. income summary15
B. revenues, expenses and withdrawls16
D. nominal accounts17
closing entries Sales $150,000 Incomesummary $150,000 Income summary $39,000 Rentexpense $22,000 Suppliesexpense $11,000 Salariesexpense $6,000 owners withdrawls closed by transferring it toproprietor's account.1
The purpose of adjusting entries makes it possibleto report on the balancesheet the appropriate assets,liabilities,and owner's equity at the statement date. I t also make itpossible to report on the income statement the proper revenues and expensesfor the period.2
The 10column worksheet provides columns for thefirst Trial-balance adjustments, adjusted trial balance, incomestatement, and balance sheet. The worksheet does not replacethe financial statements. Instead, it is an informal device foraccumlating and sorting informatio needed for the financialstatements.Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.