10 Which group of accounts contains only those that normally have a credit balance? a. Notes payable, unearned revenue, share capital b. Revenue, accounts receivable, retained earnings C. Accounts payable, cost of goods sold, revenue d. Share capital. accounts payable, income tax expense e. None of the above The correct answer is 'a'.
Related questions
Mackenzie Inc. uses a perpetual inventory system and hasprepared the following adjusted trial balance on December 31,2016:
Mackenzie Inc.
ADJUSTED TRIAL BALANCE
December 31, 2016
| ACCOUNTTITLE | DEBIT | CREDIT | |
|---|---|---|---|
1 | Cash | 2,100.00 | |
2 | Accounts Receivable | 2,700.00 | |
3 | Allowance for Doubtful Accounts | 250.00 | |
4 | Inventory | 6,700.00 | |
5 | Prepaid Insurance | 800.00 | |
6 | Land | 5,000.00 | |
7 | Buildings and Equipment | 34,700.00 | |
8 | Accumulated Depreciation | 14,700.00 | |
9 | Accounts Payable | 3,500.00 | |
10 | Salaries Payable | 440.00 | |
11 | Unearned Rent | 360.00 | |
12 | Income Taxes Payable | 2,750.00 | |
13 | Note Payable | 4,600.00 | |
14 | Interest Payable | 900.00 | |
15 | Common Stock | 9,900.00 | |
16 | Retained Earnings | 7,300.00 | |
17 | Dividends | 1,400.00 | |
18 | Income Summary | ||
19 | Sales Revenue | 33,770.00 | |
20 | Rent Revenue | 1,370.00 | |
21 | Cost of Goods Sold | 15,290.00 | |
22 | Selling Expenses | 4,900.00 | |
23 | Administrative Expenses | 2,600.00 | |
24 | Interest Expense | 900.00 | |
25 | Income Tax Expense | 2,750.00 | |
26 | Totals | 79,840.00 | 79,840.00 |
| For classification purposes: | |
| Note payable is due July 1,2020 | |
| Interest payable is due July 1,2020 |
| Required: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Prepare in proper form for 2016the companyâs: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1. income statement | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2. retained earningsstatement | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3. ending balancesheet | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4. closing entries in its general journal Additional Information for labeling:
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