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Shown below is a trial balance for Novelty Toys, Inc., on December 31,after adjusting entries: Novelty Toys, Inc.

Shown below is a trial balance for Novelty Toys, Inc., on December 31,after adjusting entries:

 

Novelty Toys, Inc.Trial BalanceDecember 31

Cash$7,750    

Accounts Receivable 6,375     

Office Equipment 11,250     

Accumulated Depreciation   $3,000 

Accounts Payable     3,875

 Capital Stock     11,250 

Retained Earnings     -0- 

Dividends 3,750     

Fees Earned     22,750 

Salaries Expense 8,000     

Advertising Expense 1,625    

 Depreciation Expense 2,125      

$40,875  $40,875 


  1. The entry to close the Fees Earned account will:

A. Produce a zero balance in that account when posted.

B. Include a debit to Income Summary.

C. Include a credit to Fees Earned.

D. Include a debit to Capital Stock.


2.. The entry to close Salaries Expense account will:

A. Transfer the total of Salaries Expense directly to Retained Earnings.

B. Include a debit to Income Summary.

C. Include a debit to Salaries Expense.

D. Include a credit to Capital Stock.

3.. Net income for the period equals:

A.$18,375.

B. $11,000.

C. $ 5,800.

D. $11,250.


4... After closing the accounts, Retained Earnings at December 31 equals:

A. $11,000.

B. $7,250.

C. Zero.

D. $22,250.

5... The total debits in the After-Closing Trial Balance will equal:

A. $25,375.

B. $29,125.

C. $40,875.

D. $18,125.

6... Income Summary will have what balance before it is closed?

A. Zero.

B. $11,750.

C. $ 7,250.

D. $11,000.

Top Answer

The correct answers are given below: The entry to close the Fees Earned account will: A. Produce a zero balance in that... View the full answer

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