ACC290T Week 5 Apply Exercise SCORE 100 PERCENT

Question 1

The first two closing entries to the Income Summary account indicate a debit of $57,250 and a credit of $69,100. The third closing entry would be:

 

Multiple Choice

    debit Capital $11,850; credit Income Summary $11,850.

    debit Income Summary $11,850; credit Drawing $11,850.

    debit Revenue $69,100; credit Expenses $57,250.

    debit Income Summary $11,850; credit Capital $11,850.

 

Question 2

On December 31, 2019, the ledger of Lopez Company contained the following account balances:
 

Cash	$	31,000	Maria Lopez, Drawing	$	11,500
Accounts Receivable		1,900	Fees Income		43,750
Supplies		1,100	Depreciation Expense		1,750
Equipment		24,000	Salaries Expense		15,000
Accumulated Depreciation		1,500	Supplies Expense		2,000
Accounts Payable		2,000	Telephone Expense		1,600
Maria Lopez, Capital		46,250	Utilities Expense		3,650

Prepare the closing entries for the above transactions.

 

 

Question 3

The Income Summary and Linda Carter, Capital accounts for Carter Production Company at the end of its accounting period follow.
 

Income Summary			Account No. 399
				Balance
Date	Description	Debit	Credit	Debit	Credit
2019
Dec. 31	Closing		66,400		66,400
31	Closing	35,600			30,800
31	Closing	30,800			0

 

Linda Carter, Capital			Account No. 301
				Balance
Date	Description	Debit	Credit	Debit	Credit
2019
Dec.  1			117,000		117,000
31	Closing		30,800		147,800
31	Closing	10,700			137,100

 

Enter the following amounts.

 

Question 4

The ledger accounts of AXX Internet Company appear as follows on March 31, 2019:
 

ACCOUNT NO.	ACCOUNT	BALANCE
101	Cash	$	61,000
111	Accounts Receivable		35,460
121	Supplies		8,700
131	Prepaid Insurance		23,100
141	Equipment		99,000
142	Accumulated Depreciation—Equipment		39,420
202	Accounts Payable		11,100
301	Aretha Hinkle, Capital		111,000
302	Aretha Hinkle, Drawing		11,100
401	Fees Income		299,800
510	Depreciation Expense—Equipment		19,260
511	Insurance Expense		9,500
514	Rent Expense		31,100
517	Salaries Expense		147,000
518	Supplies Expense		3,700
519	Telephone Expense		4,900
523	Utilities Expense		7,500

All accounts have normal balances.

Required:

1. Prepare the closing entries.
2. Post the transactions in to the appropriate ledger accounts. Hint: Be sure to enter beginning balances.

 

 

Question 5

On December 31, the Income Summary account of Madison Company has a debit balance of $31,000 after revenue of $33,000 and expenses of $64,000 were closed to the account. Madison Wells, Drawing has a debit balance of $3,400 and Madison Wells, Capital has a credit balance of $52,000.

Required:

1. Record the journal entries necessary to complete closing the accounts.
2. What is the new balance of Madison Wells, Capital?

 

Question 6

The adjusted ledger accounts of RD Consulting on December 31, 2019, appear as follows.
 

Account Name	Balance
Cash		7,700
Accounts Receivable		2,250
Supplies		2,100
Prepaid Insurance		770
Equipment		20,500
Accumulated Depreciation–Equipment		4,400
Accounts Payable		3,450
Roger Dye, Capital		16,500
Roger Dye, Drawing		4,200
Fees Income		19,800
Supplies Expense		820
Insurance Expense		670
Depreciation Expense–Equipment		620
Salaries Expense		3,450
Utilities Expense		1,070
Prepare the Balance Sheet and Income Statement columns of the worksheet. Prepare the closing entries for RD Consulting on December 31, 2019. All accounts have normal balances and adjusting entries have been made.

Question 7

The partial worksheet for the Jamison Company showed the following data on October 31, 2019.
 

	INCOME STATEMENT				BALANCE SHEET
ACCOUNT NAME	DEBIT		CREDIT		DEBIT		CREDIT
Jason Jamison, Capital							31,000
Jason Jamison, Drawing					2,000
Fees Income			21,000
Salaries Expense	10,800
Rent Expense	1,100
Supplies Expense	500
Utilities Expense	600
Depr. Exp. −Equip.	950
Totals	13,950		21,000		42,650		35,600
Net Income	7,050						7,050
	21,000		21,000		42,650		42,650

Prepare the closing entries for Jamison Company on October 31, 2019.

 

 

Question 8

On December 31, the ledger of Davis Company contained the following account balances:
 

Accounts Payable	$	12,600		Fees Income	$	177,000
Accounts Receivable		5,500		Supplies		3,900
Accumulated Depreciation		7,400		Prepaid Rent		59,500
Cash		79,000		Rent Expense		8,700
Depreciation Expense		7,400		Supplies Expense		7,900
Equipment		67,000		Teresa Davis, Capital		108,500
Teresa Davis, Drawing		51,500		Utilities Expense		15,100

All the accounts have normal balances. Prepare the closing entries for Davis Company On December 31.

·  Record entry to transfer fees income to income summary.

 

·  2 Record entry to transfer expenses to income summary.

 

·  3 Record entry to transfer net income or net loss from income summary to capital.

 

·  4 Record entry to transfer drawings to capital account.

 

Question 9

Dorsey Company's partial worksheet for the month ended March 31, 2019, is shown below. Open the owner's capital account (account number 301) in the general ledger and record the March 1, 2019, balance of $40,500 shown on the worksheet.
 

	INCOME STATEMENT				BALANCE SHEET
ACCOUNT NAME	DEBIT		CREDIT		DEBIT		CREDIT
Cash					10,200
Accounts Receivable					14,400
Supplies					5,350
Equipment					38,500
Accum. Depr. - Equip.							13,400
Accounts Payable							11,200
N. Dorsey, Capital							40,500
N. Dorsey, Drawing					4,700
Fees Income			29,800
Salaries Expense	15,100
Rent Expense	2,250
Supplies Expense	1,550
Depr. Exp. −Equip.	2,850
Totals	21,750		29,800		73,150		65,100
Net Income	8,050						8,050
	29,800		29,800		73,150		73,150

Prepare a journal entries for the Dorsey Company's on March 31, 2019. Post the closing entries to the owner's capital account. Prepare a postclosing trial balance.

 

Question 10

Danos Company's partial worksheet for the month ended December 31, 2019, is shown below. Open the owner's capital account (account number 301) in the general ledger and record the December 1, 2019, balance of $83,000 shown on the worksheet.
 

	INCOME STATEMENT				BALANCE SHEET
ACCOUNT NAME	DEBIT		CREDIT		DEBIT		CREDIT
Cash					26,500
Accounts Receivable					25,800
Supplies					10,900
Equipment					69,000
Accum. Depr. - Equip.							23,800
Accounts Payable							20,400
D. Danos, Capital							83,000
D. Danos, Drawing					7,900
Fees Income			57,400
Salaries Expense	30,600
Rent Expense	4,700
Supplies Expense	2,350
Depr. Exp. −Equip.	6,850
Totals	44,500		57,400		140,100		127,200
Net Income	12,900						12,900
	57,400		57,400		140,100		140,100

Prepare the closing entries for the Danos Company's on December 31, 2019. Post the closing entries to the owner's capital account. Prepare a postclosing trial balance.