Question

Name of Account Normal Balance Act Financial Statement 100Balance Sheet Type Asset, Current Centres may involve posting a create Depreciate Expenses Commee Stock a t Interest Revente con Ceece Stock a t None of the above All the following t h ere are base Accumulated Depreciation Leamed Raven Fees Revenue Commen Stock None of the above the current year twice by mistake The effect of accountant for the IN Company made an adjust cond u cators to this error would be An understatement of net income, and wer's quity An overstatement of sand of net income, and an understatement of one's equity An overstatement of income and destek of wat An overstatement of sets offset by an understatement of owner's equity. None of the shows the Son header of cred books theater tickets at h contained in mu o tickets to future pers .co. ing the curent period 1.000 books were sold for $30.000 this s ited to temporary count. At the end of the period it was determined that $10.000 worth of book tickets had been used by customers attending performances. The appropriate sig try at the end of Debit Uneared Ticket Rome $20,000 acred Tiket Revenue $20,000 Debit Chewed Ticket Raven 510,000 and crede Ticket Revenue S10,000 Debit Ticket Reverse 320.000 credit Umred Tiket Reverse 520,000 Debit Ticket Reve 510,000 credit Uncamed Tikka Ravame 510.000 None of the above Use the dowise data for the t enant Fred Company reports these account balances t Accounts Payable uy 1, 2011: Accounts Receivable Accumulated Deprecision Buildings Common Slack Retained Earnings Uncamed Revenue On January 2 2011. Fred (1) collected 516,000 in d of additional shares of common stock ealerned revenue to be cared in the future (2) 35,000 of payable, and (3) sold $20.000 41. uary 1, 2011, the total of the debt columns La a trial balance prepared at $175.000 5345.000 5415,000 None of the above 42 In a trial balance prepared at nuky 2. 2011 (atter the three transactions above were recorded the total of the debit columns $415.000 5411000 $426.000 None of the above 43. On January 2, 2011, the balance sheet (after the three transactions above were recorded) would balanse $104.000 $375,000 $ 5.000 $361,000 None of the above

Answer 1

Answer to Question 37:

Closing entries are for closing temporary accounts. It is for determining the net profit/loss and closing it off to Retained Earnings. Also, for closing the dividend account to retained earnings.

Hence, expenses are credited while the income summary account is debited. While in the case of revenue, revenue accounts are debited while income summary account is debited.

Hence, the correct answer is Option A.

Answer to Question 38:

Accumulated Depreciation is a contra asset account, hence it normally should have a credit balance. Unearned Revenue is a liability account, hence it normally should have a credit balance. Fees earned is revenue account, hence it normally should have a credit balance. Common stock is a shareholders equity account, hence it normally should have a credit balance.

Hence, the correct answer is Option E.

Answer to Question 39:

A normal entry for accrued salaries would involve a debit to salaries expense and a credit to salaries payable. Since the entry has been recorded twice, which means expense has been recorded twice and liability (salaries payable) has been recorded twice. If expense is recorded an additional time, it means less net income must have been reported, which in accounting terms would be an understatement of net income. Also since liability has been recorded an additional time, it means there has been overstatement of liability.

Hence, it is understatement of net income and overstatement of liability. The correct answer is Option E.