6.) The accounts in the ledger of Monroe Entertainment Co. are listed below. All accounts have normal balances.
Accounts Payable $576 Fees Earned $2,773
Accounts Receivable $630 Insurance Expense $632
Prepaid Insurance $1,600 Land $2,446
Cash $2,137 Wages Expense $575
Dividends $607 Common Stock $5,278
Prepare a trial balance. The total of the debits is
$6,813
$8,627
$1,207
$5,278
7.) The Income Statement columns in the end-of-period spreadsheet show that debits are equal to $29,127 and credits are $65,387. What does this information mean to the accountant?
a. the accounts are out of balance, indicating an error has been made
b. the accounts have not been updated
c. net loss of $36,260
d. net income of $36,260
8.) The journal entry to close the Fees Earned, $132, and Rent Revenue, $22, accounts during the year-end closing process would involve:
a. debits to the two revenue accounts
b. a debit to a general revenue account
c. a credit to a general revenue account
d. credits to the two revenue accounts