I. Multiple Choice.

1. The entry to close the income to the Income and Expense Summary Account:
a. Service Income 85,000
Income and Expense Summary 85,000
b. Income and Expense Summary 85,000
Service Income 85,000
c. Obsioma, Capital 85,000
Service Income 85,000
d. Service Income 85,000
Obsioma, Capital 85,000

2. The entry to close the expenses to the Income and Expense Summary Account:
a. Income and Expense Summary 82,820
Uncollectible Accounts 120
Depreciation Expense 2,700
Salaries Expense 50,000
Supplies Used 30,000
b. Uncollectible Accounts 120
Depreciation Expense 2,700
Salaries Expense 50,000
Supplies Used 30,000
Income and Expense Summary 82,820

c. Income and Expense Summary 82,820

Obsioma, Capital 82,820

d. None of the Above

3. To record the provisioning of the Allowance for bad debts. 3% of 100,000

Accounts Receivable is estimated to be uncollectible. Allowance for Bad Debts was
already set at 1000.
a. Allowance for Bad Debts 3,000
Bad Debts 3,000
b. Allowance for Bad Debts 2,000
3,000
c.
Allowance for
d.

.
 MARY GOMEZ TRIAL BALANCE DECEMBER 31, 20A

UNADJUSTED ADJUSTED TRIAL

ACCOUNT TITLE TRIAL BALANCE ADJUSTMENTS BALANCE
DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT

Cash In Bank 362,000 20,000 342,000

Accounts Receivable 56,000 56,000

Est. Uncollectable
Accounts 1,000 120 1,120

Prepaid Supplies 65,000 30,000 35,000

Office Equipment 162,000 162,000

Acc. Dep'n-Office
Equip. 13,500 2,700 16,200

Accounts Payable 60,000 20,000 40,000

Salaries Payable 25,000 25,000

Unearned Service
Revenue 20,000 20,000

M. Gomez, Capital 490,500 490,500

Service Revenue 105,000 20,000 85,000

Uncollectible
Accounts 120 120

Depreciation Expense 2,700 2,700

Salaries Expense 25,000 25,000 50,000

Supplies Used 30,000 30,000

TOTAL 670,000 670,000 97,820 97,820 677,820 677,820

Prepare the following:

a. six column worksheet,
b. Income Statement,
c. Statement of Changes in Owner’s Equity,
d. Balance Sheet and
e. Post-Closing Trial Balance using the above data.
 MARY GOMEZ
WORKSHEET
DECEMBER 31, 20A

ACCOUNT TITLE ADJUSTED TRIAL BALANCE INCOME STATEMENT BALANCE SHEET

DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT
 MARY GOMEZ INCOME STATEMENT
FOR THE MONTH ENDED DECEMBER 31, 20A

MARY GOMEZ
STATEMENT OF CHANGES IN OWNER'S EQUITY FOR THE MONTH ENDED DECEMBER 31, 20A
 MARY GOMEZ
BALANCE SHEET
AS OF DECEMBER 31, 20A

ARY GOMEZ
POST CLOSING TRIAL BALANCE DECEMBER 31, 20A