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QUESTION 1

The income statement for the month of June, 2013 of Camera Obscura Enterprises contains the following information: Revenues $7,000 Expenses: Salaries and Wages Expense $3,000 Rent Expense 1,000 Advertising Expense 800 Supplies Expense 300 Insurance Expense 100 Total expenses 5,200 Net income $1,800 The entry to close the expense accounts includes a debit to Income Summary for $1,800. debit to Wages Expense for $3,000. credit to Rent Expense for $1,000. credit income summary for 5,200 ================================================= QUESTION 2 The income statement for the year 2013 of Fugazi Co. contains the following information: Revenues $70,000 Expenses: Salaries and Wages Expense $45,000 Rent Expense 12,000 Advertising Expense 8,000 Supplies Expense 6,000 Utilities Expense 2,500 Insurance Expense 2,000 Total expenses 75,500 Net income (loss) ($5,500) At January 1, 2013, Fugazi reported retained earnings of $50,000. Dividends for the year totalled $10,000. At December 31, 2013, the company will report retained earning of $15,500. $34,500. $40,000. $45,500. QUESTION 3 The income statement for the month of June, 2013 of Camera Obscura Enterprises contains the following information: Revenues $7,000 Expenses: Salaries and Wages Expense $3,000 Rent Expense 1,000 Advertising Expense 800 Supplies Expense 300 Insurance Expense 100 Total expenses 5,200 Net income $1,800 At June 1, 2013, Camera Obscura reported retained earnings of $35,000. The company paid no dividends during June. At June 30, 2013, the company will report retained earnings of $35,000. $36,800. $42,000. $29,800. ============================================================= QUESTION 4 The income statement for the year 2013 of Fugazi Co. contains the following information: Revenues $70,000 Expenses: Salaries and Wages Expense $45,000 Rent Expense 12,000 Advertising Expense 8,000 Supplies Expense 6,000 Utilities Expense 2,500 Insurance Expense 2,000 Total expenses 75,500 Net income (loss) ($5,500) After all closing entries have been posted, the Income Summary account will have a balance of $0. $5,500 debit. $5,500 credit. $34,500 credit. ======================================================== QUESTION 5 The income statement for the year 2013 of Fugazi Co. contains the following information: Revenues $70,000 Expenses: Salaries and Wages Expense $45,000 Rent Expense 12,000 Advertising Expense 8,000 Supplies Expense 6,000 Utilities Expense 2,500 Insurance Expense 2,000 Total expenses 75,500 Net income (loss) ($5,500) The entry to close Income Summary to Retained Earnings includes credits to Expenses totalling $75,500. a credit to Income Summary for $5,500. a credit to Retained Earning for $5,500. a debit to Revenue for $70,000.

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