IV. 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
Using this information for questions 16-20, answer the following questions as they relate to closing entries.
16. Which answer would best represent the closing entry for a revenue type 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
17. Which answer would represent the closing entry for an expense type 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
18. 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
19. 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
20. 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