Ocotillo Villas prepared the following adjusted trial balance for the year

Ocotillo villas prepared the following adjusted trial

This preview shows page 5 - 6 out of 6 pages.

10. Ocotillo Villas prepared the following adjusted trial balance for the year ended December 31: Debits Credits Cash $45,000 Revenue $60,000 Common stock $50,000 Depreciation expense $8,000 Retained earnings $15,000 Accounts receivable $15,000 Unearned revenue $12,000 Cost of goods sold $30,000 Equipment $40,000 Accumulated depreciation $14,000 Note payable to bank $23,000 Wages expense $6,000 Inventory $25,000 Dividends $5,000 Total $174,000 $174,000 Using the adjusted trial balance from above, what is Ocotillo Villas' net income for the year ended December 31? a. $28,000 b. $23,000 c. $16,000 d. $11,000 Answer: c Rationale: ($60,000 - $8,000 - $30,000 - $6,000) 11.Temporary accounts:
Background image
©Cambridge Business Publishers, 2017 Quiz Solutions 3-6Financial Accounting for Undergraduates, 3rdEdition12.Which of the following is notan example of a closing entry? e. Close each revenue account to the Income Summary account f. Close each expense account to the Income Summary account g. Close the Income Summary account to the Retained Earnings account h. Close the Unearned Revenue account to the Retained Earnings account Answer: d
Background image

You've reached the end of your free preview.

Want to read all 6 pages?

  • Spring '09
  • WILLIAMS
  • Generally Accepted Accounting Principles, ©Cambridge Business Publishers, Ocotillo Villas

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture