1.|Revenues, expenses, and withdrawals accounts, which are closed at the end of each accounting period are: A.|Real accounts.|B.|Temporary accounts.|C.|Closing accounts.|D.|Permanent accounts.|E.|Balance sheet accounts.||
2.|Closing entries are required: A.|if management has decided to cease operating the business.|B.|only if the company adheres to the accrual method of accounting.|C.|if a company's bookkeeper forgets to prepare reversing entries.|D.|if the temporary accounts are to reflect correct amounts for each accounting period.|E.|in order to satisfy the Internal Revenue Service.||
3.|The special account used only in the closing process to temporarily hold the amounts of revenues and expenses before the net difference is added to (or subtracted from) the owner's capital account is the: A.|Income Summary account.|B.|Closing account.|C.|Balance column account.|D.|Contra account.|E.|Nominal account.||
4.|A post-closing trial balance reports: A.|All ledger accounts with balances, none of which can be temporary accounts.|B.|All ledger accounts with balances, none of which can be permanent accounts.|C.|All ledger accounts with balances, which include some temporary and some permanent accounts.|D.|Only revenue and expense accounts.|E.|Only asset accounts.||
Problem ( 60 points ) SHOW ALL WORK!!!!
|Following are selected accounts and their balances for a company after the adjustments as of May 31, the end of its fiscal year. (All accounts have normal balances.) Prepare all the necessary closing entries for this company. |