Question Details

The entry to close the expense accounts 



1.	The income statement for the month of June, 2011 of Taylor Enterprises contains the following information:
Revenues		₤7,000
Expenses:
	Wages Expense	₤2,000
	Rent Expense	1,000
	Supplies Expense	300
	Advertising Expense	200
	Insurance Expense	     100
		Total expenses		  3,600
Net income		₤3,400

The entry to close the revenue account includes a
a.	debit to Income Summary for ₤3,400.
b.	credit to Income Summary for ₤3,400.
c.	debit to Income Summary for ₤7,000.
d.	credit to Income Summary for ₤7,000.



	2.	The income statement for the month of June, 2011 of Taylor Enterprises contains the following information:
Revenues		₤7,000
Expenses:
	Wages Expense	₤2,000
	Rent Expense	1,000
	Supplies Expense	300
	Advertising Expense	200
	Insurance Expense	     100
		Total expenses		  3,600
Net income		₤3,400

The entry to close the expense accounts includes a
a.	debit to Income Summary for ₤3,400.
b.	credit to Rent Expense for ₤1,000,
c.	credit to Income Summary for ₤3,600.
d.	debit to Wages Expense for ₤2,000.


3.	The income statement for the month of June, 2011 of Taylor Enterprises contains the following information:
Revenues		₤7,000
Expenses:
	Wages Expense	₤2,000
	Rent Expense	1,000
	Supplies Expense	300
	Advertising Expense	200
	Insurance Expense	     100
		Total expenses		  3,600
Net income		₤3,400

After the revenue and expense accounts have been closed, the balance in Income Summary will be
a.	₤0.
b.	a debit balance of ₤3,400.
c.	a credit balance of ₤3,400.
d.	a credit balance of ₤7,000.


	4.	The income statement for the month of June, 2011 of Taylor Enterprises contains the following information:
Revenues		₤7,000
Expenses:
	Wages Expense	₤2,000
	Rent Expense	1,000
	Supplies Expense	300
	Advertising Expense	200
	Insurance Expense	     100
		Total expenses		  3,600
Net income		₤3,400

The entry to close Income Summary to Retained Earnings includes
a.	a debit to Revenue for ₤7,000.
b.	credits to Expenses totalling ₤3,600.
c.	a credit to Income Summary for ₤3,400
d.	a credit to Retained Earnings for ₤3,400.



5.	The income statement for the month of June, 2011 of Taylor Enterprises contains the following information:
Revenues		₤7,000
Expenses:
	Wages Expense	₤2,000
	Rent Expense	1,000
	Supplies Expense	300
	Advertising Expense	200
	Insurance Expense	     100
		Total expenses		  3,600
Net income		₤3,400

At June 1, 2011, Taylor reported Retained Earnings of ₤35,000.  The company paid no dividends  during June.  At June 30, 2011, the company will report Retained Earnings of
a.	₤35,000.
b.	₤42,000.
c.	₤38,400.
d.	₤31,600.





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