QUESTION #1

During the closing process: A. All income statement accounts are credited to income summary. B. All income statement accounts are debited to income summary. C. All revenue accounts are credited and expense accounts are debited.

D. All revenue accounts are debited and expense accounts are credited.

QUESTION #2

A debit balance in the income summary account indicates: A. An error was made. B. A Net Profit. C. A Net Loss. D. That revenues were greater than expenses.

QUESTION# 3

SUNDIAL Inc. Trial Balance December 31
	Debit	Credit
Cash.......................................................................	$ 16
Accounts Receivable..............................................	26
Equipment..............................................................	191
Accounts Payable...................................................		$ 21
Capital Stock..........................................................		106
Retained Earnings...................................................		56
Dividends...............................................................	11
Service Revenue.....................................................		189
Salaries Expense.....................................................	86
Depreciation...........................................................	26
Supplies Expense....................................................	16	____
	$372	$372

1 What is the balance in Income Summary before it is closed to Retained

Earnings?

a $61.

b $50.

c $73.

d $145.

2 What is the balance in Retained Earnings after posting closing entries at December 31?

a $117.

b $106.

c $61.

d $45.

3 What is the total debits on the after-closing trial balance?

a $222.

b $372.

c $233.

d $161.

4 Which accounts are closed to Income Summary?

a All accounts.

b Revenue and expenses.

c Revenue, expenses, and dividends.

d All accounts that are not nominal.

5 Which accounts will appear on the balance sheet?

a Retained earnings of $56.

b Dividends of $11.

c Net income of $60.

d None of the above.