21) ________

 

Wages Expense

$500

Wages Payable

$500

 

 

22) ________

 

Income Summary

$800

Utilities Expense

$800

 

23) ________

 

Fees Earned

$18,000

Income Summary

$18,000

 

 

24) ________

 

Capital

$11,000

Withdrawals

$11,000

 

 

25) ________

 

Depreciation Expense

$300

Accumulated Depreciation

$300

 

 

5.2   Learning Objective 5-2

 

1) Closing entries are prepared:

A) to clear all temporary accounts to zero.

B) to update the Capital balance.

C) at the end of the accounting period.

D) All of the above are correct.

2) Income Summary:

A) is a temporary account.

B) is a permanent account.

C) summarizes revenue and expenses and transfers the balance to Capital.

D) Both A and C are correct.

 

3) Which of the following accounts is not a temporary account?

A) Withdrawals

B) Fees Earned

C) Cash

D) Income Summary

 

4) Which of the following accounts would not be considered a permanent account?

A) Accounts Receivable

B) Salaries Expense

C) Accounts Payable

D) Office Supplies

 

5) An account in which the balance is not carried over from one accounting period to the next is called a:

A) permanent account.

B) real account.

C) temporary account.

D) zero account.

 

 



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