1. Indicate whether each of the following statements is True or False and then select the correct multiple
choice answer.
_____ The account “Cash”
... [Show More] will be used in most adjusting journal entries.
_____ After closing entries are made, the accounts Cost of Goods Sold, Prepaid Expense, and Dividends will all
have a zero balance.
A. True, True
B. True, False
C. False, True
D. False, False
2. The following list of accounts appear in alphabetical order and were taken from ABC Corporation’s ledger
as of December 31, 2015. The Accounts Payable records were missing.
Accounts Payable ??
Accounts Receivable 3,000
Building 22,000
Cash 9,000
Common Stock 20,000
Cost of Goods Sold 2,000
Dividends 1,000
Equipment 10,000
Inventory 7,000
Land 5,000
Notes Payable 12,000
Retained Earnings 11,000
Revenue 8,000
Unearned Revenue 4,000
Wage Expense 9,000
Based on this information, determine the total dollar amount of credits that would appear in the company’s
trial balance.
A. $68,000
B. $66,000
C. $67,000
D. $72,000
E. $65,000
3. Match each of the following events with its related term by entering the appropriate letter in the space
provided and then selecting the correct multiple choice answer?
1. Accrued Expense 2. Accrued Revenue 3. Deferred Expense 4. Deferred Revenue
_____ Office supplies purchased with cash.
_____ Customer prepays for a year magazine subscription, but no magazines have yet been delivered.
_____ Interest has been earned on a note receivable, but the cash has not yet been received.
_____ Utilities bill has been received, but will not be paid until next month.
A. 1, 2, 3, 4
B. 3, 4, 2, 1
C.
D.
2, 1, 4, 3
4, 3, 2, 1
E. 1, 2, 4, 3
4. The following is a partial list of accounts from a company’s December 31, 2015, unadjusted Trial Balance:
Accounts Receivables $12,000 Unearned Revenue $ 16,350
Interest Revenue 20,270 Retained Earnings (1/1/15) 122,625
Utilities Expense 10,900 Prepaid Expenses 4,600
Dividends 6,400 Service Revenue 65,400
Salary Expense 23,450 Interest Expense 4,500
Accrued Expenses 9,250 Rent Expense 20,120
What is the balance in the Retained Earnings account on December 31, 2015, after closing?
A. $133,675
B. $142,925
C. $159,275
D. $150,025
E. $149,325 [Show Less]