Accounting Chapter 5 Objective 2

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* 1. Which of the following accounts would not be involved in closing entries?

Advertising Expense

J. Ryan, Drawing

Salaries Payable

Income from Services

Rent Expense

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* 2. Which of the following are all temporary accounts?

Liabilities, revenue, and expenses

Revenue, liabilities, and the owner's Drawing

Assets, liabilities, and owner's Drawing

Revenue, expenses, and the Owner's Drawing

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* 3. In preparing the first two closing entries, to which of the following columns of the work sheet does one refer?

Balance Sheet columns

Adjusted Trial Balance columns

Income Statement columns

Trial Balance columns

Adjustments columns

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* 4. The owner's Drawing account for the current period is closed to the

Cash account.

Income Summary account.

Income from Services account.

Wages Expense account.

owner's Capital account

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* 5. If L. Green's total revenue for the year was $38,000 and total expenses were $30,000, the third closing entry would be

debit Income Summary; credit L. Green, Capital.

debit L. Green, Capital; credit Income Summary.

debit Income Summary; credit Income from Services.

debit Income from Services; credit Income Summary.

debit L. Green, Capital; credit L. Green, Drawing.

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* 6. The Income Summary account has an $8,000 credit balance prior to being closed to the owner's Capital account. The owner's Capital account had a $32,000 beginning balance and a $36,500 ending balance. Determine the amount of the owner's drawing during the current period.

$8,500

$3,500

$2,500

$4,500

$8,000

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* 7. Which of the following accounts should be closed to J. Bean, Capital, in the fourth closing entry?

Professional Fees

J. Bean, Drawing

Wages Expense

Income Summary

Accumulated Depreciation

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* 8. Which of the following accounts should be closed to Income Summary at the end of the fiscal year?

Rent Expense

Equipment

Wages Payable

Accumulated Depreciation

The owner's Drawing account

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* 9. Closing entries are prepared to close the

temporary accounts.

accumulated depreciation accounts.

owner's Capital account.

Wages Payable account.

payables and receivables.

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* 10. The last step in the closing procedure closes

the Income Summary account.

the Capital account.

the Drawing account.

the expense accounts.

all liability accounts.