Reference no: EM132932048

The following balances are stated below:

Cash $1,170

Supplies 1,930

Prepaid Insurance 600

Equipment 20,600

Accumulated depreciation 5,400

Accounts Payable 500

Unearned Revenue 700

Capital 13,925

Withdrawal 4,800

Revenue-Fees Earned 21,700

Salary Expense 6,900

Depreciation Expense 2,000

Supplies Expense 800

Insurance Expense 400

Problem 1: Which answer would best represent the closing entry for a revenue types account?

a. debit to income summary for $22,400

b. credit to income summary for $21,700

c. credit to revenue for $21,700

d. debit to income summary for $21,700

Problem 2: Which answer would represent the closing entry for expense types account?

a. debit income summary for $10,100

b. debit income summary for $15,500

c. debit accumulated depreciation $5,400

d. credit depreciation expense $2,000

Problem 3: Which answer would represent the proper closing out of profit or loss for the period?

a. debit income summary for $11,600

b. debit capital for $11,600

c. credit income summary for $12,300

d. credit capital $12,300

Problem 4: Which answer would represent the proper entry for closing out the withdrawals?

a. debit withdrawals for $4,800

b. debit capital for $4,800

c. credit income summary for $4,800

d. none of the above are correct

Problem 5: After recording the proper closing entries what is the Capital account balance at the end of the period?

a. $20,725

b. $13,925

c. $20,600

d. $15,500