008 t Unearned Service Revenue Wages Payable Wages Expense S

008 t Unearned Service Revenue Wages Payable Wages Expense Service Revenue Rent Expense Retained Earnings, 1/1/2008 Prepaid Rent Notes Payable, Due 5/1/2020 Notes Payable, Due 5/1/2009 Land Interest Revenue Interest Payable Interest Expense Equipment Dividends Depreciation ExpenseEquipment Common Stock Cash Accumulated Depreciation Equipment Accounts Receivable Accounts Payable 1,000 2,000 17,000 37,000 3,000 6,000 5,500 20,000 1,000 30,000 3,000 1,000 1,000 15,000 1,500 3.500 55,000 40,000 5,000 17.500 3,000 The journal entry to close the revenue accounts is: a. Debit all revenue accounts, Credit Dividends b. Debit all revenue accounts, Credit Income Summary c. Debit Income Summary, Credit all revenue accounts d. Debit Income Summary, Credit Retained Earnings e. None of the above Refer to the previous question. The amount of the entry is: The journal entry to close the expense accounts is: a. Debit all expense accounts, Credit Dividends b. Debit all expense accounts, Credit Income Summary c. Debit Income Summary, Credit all expense accounts d. Debit Income Summary, Credit Retained Earnings e. None of the above Refer to the previous question. The amount of the entry is: The journal entry to close Income Summary is: a. Debi Cash, credit Retained Earnings b. Debit Income Summary, credit Cash c. Debit Income Summary, credit Retained Earnings d. Debit Retained Earnings, credit Income Summary e. None of the above Refer to the previous question. The amount of the entry is: The journal entry to close Dividends is a. Debi Income Summary, credit Dividends b. Debit Dividends, credit Income Summary c. Debi Dividends, credit Retained Earnings d. Debit Retained Earnings, credit Dividends e. None of the above After all closing entries are made, the post-closing trial balance would have a credit balance of The purpose of closing entries is: a. To close the net income for the period to the Retained Earnings account. b. To close Dividends to the Retained Earnings account e. To close d. All of the above e. None of the above all temporary accounts for the period

Solution

to close revenue option b) debit all revenue accounts ,credit income summary to close expense account option c) debit income summary ,credit all expense accounts option c) Debit income summary ,credit retained earnings option d) Debit retained earnings ,credit dividends option c) to close all temporary accounts for the period