Chapter 8 Group Test Review
1. On the last day of April, Jack prepared the adjusting entries for his company. He has
written "Adjusting Entries" in the Account Title column and recorded April 30 in the date
column. What will Jack do NEXT?
Answer:
2. In preparing adjustment entries for his company, Steve has written "Insurance
Expense" in the Account Title column. What will he do NEXT?
Answer:
3. Michael is preparing the closing entries for his company. He has closed all the income
statement accounts that have a credit balance. What is the NEXT step that he will perform?
Answer:
4. Mary is preparing the closing entries for her company. After she has closed the Income
Summary account, what will she do NEXT?
Answer:
5. Steve is preparing the Post-Closing Trial Balance. After he has written "Post Closing
Trial Balance" in the heading section, what will he do NEXT?
Answer:
Chapter 8 Group Test Review
6. Adam is preparing the Post-Closing Trial Balance. He has recorded all the account
balances in the correct column. What will he do NEXT?
Answer:
7. James is closing the income summary account. His company had a net income of $900.
The correct journal entry is:
Debit Account
What amount?
Credit Account
What amount?
8. Mary is closing the income summary account. Her company had a net loss of $2,000. The
correct journal entry is:
Debit Account
What amount?
Credit Account
What amount?
9. The owner's drawing account has a balance of $275. The correct entry to close the
drawing account would be to:
Debit Account
What amount?
Credit Account
What amount?
10. When closing the Advertising Expense account, the correct journal entry would be to:
Debit Account
Credit Account
11. When closing the Miscellaneous Expense account, debit:
Debit Account
Credit Account
Chapter 8 Group Test Review
12. The Sales account has a balance of $3,875. To close the Sales account, the journal entry
should:
Debit Account
What amount?
Credit Account
What amount?
13. The beginning supplies balance is $2,300 and the ending supplies balance is $2,200. The
correct adjusting entry will be to debit:
Debit Account
What amount?
Credit Account
What amount?
14. The beginning Prepaid Insurance balance is $3,700 and the ending Prepaid Insurance
balance is $2,200. The correct adjusting entry will be to debit:
Debit Account
What amount?
Credit Account
What amount?