Stockholders\' equity is added to assets and the two are equal to liabilities su

Question

Stockholders' equity is

added to assets and the two are equal to liabilities

subtracted from liabilities and the net amount is equal to assets

added to liabilities and the two are equal to assets

equal to the total of assets and liabilities

Which of the accounts below would be closed by posting a debit to the account?

Unearned Revenue

Fees Earned

Miscellaneous Expense

Dividends

A summary of selected ledger accounts appears below for Alberto's Plumbing Services for the current calendar year-end.

Net income for the period is

a.$18,500

b.$15,000

c.$33,500

d.$13,000

Common Stock 12/31 8,500   1/1 6,500 12/31 15,000 Retained Earnings 6/30 3,500   12/31 15,000 11/30 5,000   Income Summary 12/31 18,500   12/31 33,500 12/31 15,000  

Explanation / Answer

1. Stockholders' equity is –

added to liabilities and the two are equal to assets

2. Which of the accounts below would be closed by posting a debit to the account?

Unearned Revenue

3. Net income for the period is

15000

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