Question Details

The income statement for the year 2011 of Poole Co.



1.	The income statement for the year 2011 of Poole Co. contains the following information:
Revenues		$70,000
Expenses:
	Wages Expense	$45,000
	Rent Expense	12,000
	Advertising Expense	6,000
	Supplies Expense	6,000
	Utilities Expense	2,500
	Insurance Expense	    2,000
		Total expenses 		  73,500
Net income (loss)		$(3,500)

The entry to close the revenue account includes a
a.	debit to Income Summary for $3,500.
b.	credit to Income Summary for $3,500.
c.	debit to Revenues for $70,000.
d.	credit to Revenues for $70,000.



	
2.	The income statement for the year 2011 of Poole Co. contains the following information:
Revenues		$70,000
Expenses:
	Wages Expense	$45,000
	Rent Expense	12,000
	Advertising Expense	6,000
	Supplies Expense	6,000
	Utilities Expense	2,500
	Insurance Expense	    2,000
		Total expenses 		  73,500
Net income (loss)		$(3,500)

The entry to close the expense accounts includes a
a.	debit to Income Summary for $3,500.
b.	credit to Income Summary for $3,500.
c.	debit to Income Summary for $73,500.
d.	debit to Wages Expense for $2,500.


	3.	The income statement for the year 2011 of Poole Co. contains the following information:
Revenues		$70,000
Expenses:
	Wages Expense	$45,000
	Rent Expense	12,000
	Advertising Expense	6,000
	Supplies Expense	6,000
	Utilities Expense	2,500
	Insurance Expense	    2,000
		Total expenses 		  73,500
Net income (loss)		$(3,500)

After the revenue and expense accounts have been closed, the balance in Income Summary will be
a.	$0.
b.	a debit balance of $3,500.
c.	a credit balance of $3,500.
d.	a credit balance of $70,000.


	
4.	The income statement for the year 2011 of Poole Co. contains the following information:
Revenues		$70,000
Expenses:
	Wages Expense	$45,000
	Rent Expense	12,000
	Advertising Expense	6,000
	Supplies Expense	6,000
	Utilities Expense	2,500
	Insurance Expense	    2,000
		Total expenses 		  73,500
Net income (loss)		$(3,500)

The entry to close Income Summary to Retained Earnings includes
a.	a debit to Revenue for $70,000.
b.	credits to Expenses totalling $73,500.
c.	a credit to Income Summary for $3,500.
d.	a credit to Retained Earnings for $3,500.



	5.	The income statement for the year 2011 of Poole Co. contains the following information:
Revenues		$70,000
Expenses:
	Wages Expense	$45,000
	Rent Expense	12,000
	Advertising Expense	6,000
	Supplies Expense	6,000
	Utilities Expense	2,500
	Insurance Expense	    2,000
		Total expenses 		  73,500
Net income (loss)		$(3,500)

At January 1, 2011, Poole reported Retained Earnings of $50,000.  Dividends  for the year totalled $10,000.  At December 31, 2011, the company will report Retained Earnings of
a.	$13,500.
b.	$36,500.
c.	$40,000.
d.	$43,500.



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