PROBLEM $1$: TRUE OR FALSE

$1.$ The first step in the accounting cycle is the preparation journal entries.

$2.$ A sale in exchange for a note receivable can be recorded in th special journal called Sales journal.

$3.$ An entry that has a single debit and a single credit is called simple entry.

$4.$To determine the account balance of a specific customer, yo would most likely refer to the general ledger.

$5.$ A P$10$ erroneous debit to Advertising expense, which should have been debited to Transportation expense, would make the trial balance imbalance.

If the total debits exceed the total credits in the statement o financial position columns of the worksheet, there is profit.

$7.$ Entity A uses the income method of initial recording advanced collections of income. During the period, Entity A collects P$10$ for an item of income. By the end of the period, P of the collection is earned. The year$-$end adjusting entry involves a debit to a liability account for P$7.$

$8.$ The adjusting entry in #$7$ above can be reversed in the nex accounting period.

$9.$ An entity's adjusting entry related to a prepayment of expense during the period involves a debit to an expense account. The entity must be using the expense method of initial recording of prepayments.

$10.$ There is profit if the income summary account is debited when closing to an equity account.