Texts: 1. 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?
1. Debit to income summary for $22,400
2. Credit to income summary for $21,700
3. Credit to revenue for $21,700
4. Debit to income summary for $21,700
17. Which answer would represent the closing entry for an expense type account?
1. Debit income summary for $10,100
2. Debit income summary for $15,500
3. Debit accumulated depreciation for $5,400
4. Credit depreciation expense for $2,000
18. Which answer would represent the proper closing out of profit or loss for the period?
1. Debit income summary for $11,600
2. Debit capital for $11,600
3. Credit income summary for $12,300
4. Credit capital for $12,300
19. Which answer would represent the proper entry for closing out the withdrawals?
1. Debit withdrawals for $4,800
2. Debit capital for $4,800
3. Credit income summary for $4,800
4. 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?
1. $20,725
2. $13,925
3. $20,600
4. $15,500