A Company Had Revenues of $75,000, Withdrawals of $10,000 and Expenses

question 18

Multiple Choice

A company had revenues of $75,000, withdrawals of $10,000 and expenses of $62,000 during an accounting period. Which of the following entries should not be journalized in the closing process?

• A) \[\begin{array} { | l | r | r | }
• \hline \text { Income Summary } & 13,000 & \\
• \hline \text { Capital } & & 13,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | r | }
• \hline \text { Capital } & 10,000 & \\
• \hline \text { Withdrawals } & & 10,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | r | r | }
• \hline \text { Revenues } & 75,000 & \\
• \hline \text { Income Summary } & & 75,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | l | l | }
• \hline \text { Income Summary } & 62,000 & \\
• \hline \text { Expenses } & & 62,000 \\
• \hline
• \end{array}\]
• E) All of these should be journalized in the closing process.

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Definitions:

Gram-positive

Bacteria that retain the crystal violet stain used in the Gram staining method, indicating a thick peptidoglycan layer in their cell walls.

Gram-variable

Bacteria that do not consistently stain as either Gram-positive or Gram-negative due to variations in their cell wall structures.

Opaqueness

The quality of being impenetrable by light; not transparent or translucent.

Decant

To pour a liquid from one container into another, usually to separate a solid from a liquid or to allow sediment to stay behind.