Author Question: Evan Roberts owns a business, Shore Sports, that rents canoes and kayaks. Below is the adjusted ... (Read 118 times)

jon_i · **on:** Jul 5, 2018

Evan Roberts owns a business, Shore Sports, that rents canoes and kayaks. Below is the adjusted trial balance at December 31. Debit Credit Cash 1,500 Accounts Receivable 2,000 Interest Receivable 100 Prepaid Insurance 1,600 Notes Receivable (long-term) 2,800 Equipment 15,000 Accumulated Depreciation 3,000 Accounts Payable 2,400 Accrued Expenses Payable 3,920 Income Taxes Payable 2,700 Unearned Rent Fees 500 Evan Roberts, Capital 7,700 Evan Roberts, Drawing 2,000 Rent Fees Earned 37,000 Furniture Rental Revenue 1,200 Interest Revenue 100 Wages Expense 19,000 Depreciation Expense 1,800 Utilities Expense 320 Insurance Expense 700 Maintenance Expense 9,000 Income Tax Expense 2,700 Totals 58,520 58,520 The entry required to close the expense accounts at the end of the period includes a:
a. a debit to Income Summary for 35,520 b. a credit to Income Summary for 35,520
c. a debit to Income Summary for 33,520 d. a credit to Income Summary for 33,520

Question 2

What are the 2016 budgeted production costs for direct materials, direct manufacturing labor, and manufacturing overhead, respectively?

A) 12,200; 61,000; 18,300
B) 12,000; 60,000; 18,000
C) 2,000; 10,000; 3,000
D) 2,000; 0; 4,500