1. G. Venda, owner of Venda Services, withdrew $25,000 from the business during the current year. Th 1 answer below »

1. G. Venda, owner of Venda Services, withdrew $25,000 from the business during the current year. The entry to close the withdrawals account at the end of the year is:

a.

G. Venda, Withdrawals

25,000

 

 

G. Venda, Capital

 

25,000

b.

Income Summary

25,000

 

 

G. Venda, Capital

 

25,000

c.

G. Venda,Withdrawals

25,000

 

 

Cash

 

25,000

d.

G. Venda, Capital

25,000

 

 

Salary Expense

 

25,000

e.

G. Venda, Capital

25,000

 

 

G. Venda, Withdrawals

 

25,000

2. The following information is available for the R. Kandamil Company before closing the accounts. After all of the closing entries are made, what will be the balance in the R. Kandamil, Capital account?

Total revenues

$300,000

Total expenses

195,000

R. Kandamil, Capital

100,000

R. Kandamil, Withdrawals

45,000

a. $360,000

d. $150,000

b. $250,000

c. $160,000

e. $60,000

3. Which of the following errors would cause the balance sheet and statement of owner’s equity columns of a work sheet to be out of balance?

a. Entering a revenue amount in the balance sheet and statement of owner’s equity debit column.

b. Entering a liability amount in the balance sheet and statement of owner’s equity credit column.

c. Entering an expense account in the balance sheet and statement of owner’s equity debit column.

d. Entering an asset account in the income statement debit column.

e. Entering a liability amount in the income statement credit column.

4. The temporary account used only in the closing process to hold the amounts of revenues and expenses before the net difference is added or subtracted from the owner’s capital account is called the

a. Closing account.

b. Nominal account.

c. Income Summary account.

d. Balance Column account.

e. Contra account.

5. Based on the following information from Repicor Company’s balance sheet, what is Repicor Company’s current ratio?

Current assets

$ 75,000

Investments

30,000

Plant assets

300,000

Current liabilities

50,000

Long-term liabilities

60,000

D. Repicor, Capital

295,000

a. 2.10

d. 0.95

b. 1.50

c. 1.00

e. 0.67

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