Use the Following Information for Questions

question 18

Multiple Choice

Use the following information for questions.
The following information relates to Jackson, Inc.:

-The amount reported as the liability for pensions on the December 31, 2010 statement of financial position is

• A)$ -0-.
• B)$30,000.
• C)$360,000.
• D)$390,000.

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Definitions:

Income Summary

A temporary account used in closing process to summarize the results of a period's revenues and expenses.

Adjusting Entry

Journal entries made in accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Closing Entry

An accounting action that transfers the balances from temporary accounts to permanent ones at the end of an accounting period.

Owner's Equity

The residual interest in the assets of an enterprise after deducting its liabilities; represents the owner's claims against the company's assets.