Homework Help is Here – Start Your Trial Now!
Business
Accounting
Blue Chip Investments purchased a 12-month insurance policy on May 31. 2016 for $3,480. The December 31. 2016 balance sheet would report Prepaid Insurance of O a. $2.030 O b. SO O c $1.450 O d. $3,480

Blue Chip Investments purchased a 12-month insurance policy on May 31. 2016 for $3,480. The December 31. 2016 balance sheet would report Prepaid Insurance of O a. $2.030 O b. SO O c $1.450 O d. $3,480

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

these multiple choice Questions from ACCOUNTING PRINCIPLES 1 Course.I need the final.

16 Blue Chip Investments purchased a 12-month insurance policy on May 31, 2016 for $3,480. The December 31, 2016 balance sheet would report Prepaid Insurance of O a. $2,030 O b. SO O C $1.450 O d. $3,480 18 If the following balances are exist in the adjusted trial balance:Service revenues $ 35,000Interest expense $ 10,000Ssalaries Expense $ 30,000Rent Revenues $ 4,000Depreciation Expense $ 7,000Drawings $ 3.000 The closing entry for the Income summary would include: O a. Capital account should be Debited (Dr.) by $ 8,000. O b. Income summary account should be Credited (Cr.) by $ 11,000. O. Income summary account should be Debited (Dr.) by $ 8,000. O d. Capital account should be Credited (Cr.) by $ 11.000.
Transcribed Image Text:16 Blue Chip Investments purchased a 12-month insurance policy on May 31, 2016 for $3,480. The December 31, 2016 balance sheet would report Prepaid Insurance of O a. $2,030 O b. SO O C $1.450 O d. $3,480 18 If the following balances are exist in the adjusted trial balance:Service revenues $ 35,000Interest expense $ 10,000Ssalaries Expense $ 30,000Rent Revenues $ 4,000Depreciation Expense $ 7,000Drawings $ 3.000 The closing entry for the Income summary would include: O a. Capital account should be Debited (Dr.) by $ 8,000. O b. Income summary account should be Credited (Cr.) by $ 11,000. O. Income summary account should be Debited (Dr.) by $ 8,000. O d. Capital account should be Credited (Cr.) by $ 11.000.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Stakeholders
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS