2. Equipment with a cost of $150,000 has an accumulated depreciation of $100,000. What is
the historical cost of the equipment?
4. The adjusted trial balance columns:
a. help to ensure the ledger is still in balance
b. help to identify any errors that may have been made during adjustment
c. show updated account balances to aid in preparation of the financial statements
d. All of the above.
10. The entry to close income summary (net loss) was entered in reverse—income summary was
debited and capital was credited. This error will cause:
a. income summary to have a credit balance
b. income summary to have a debit balance
c. the assets to be overstated
d. the liabilities to be overstated
12. Closing entries will:
a. increase the owner’s capital
b. decrease the owner’s capital balance
c. either increase or decrease owner’s capital
d. not affect the owner’s capital balance
22. Bob Hill’s hourly rate is $25.00, and he worked 38 hours during the week. What is his gross
pay for the week?
24. Which of the below allowances would have the least amount of taxes withheld for federal
income tax purposes?
25. Blue’s Tax Service has two types of employees: management and clerical support. The
company estimates that it will pay the clerical support $300,000 next year and the managers
$255,000. For every $100, the company pays $0.14 into the workers’ compensation
insurance. Calculate the amount of workers’ compensation insurance.
d. None of the above