At the End of the Accounting Period,but Before Closing Entries

question 121

Multiple Choice

At the end of the accounting period,but before closing entries are made,Harry,the proprietor of Harry's Bar and Grill,has a debit balance of $24,500 in his drawing account and a credit balance of $72,300 in his capital account.Which of the following statements is true?

• A)Harry's net income was $47,800.
• B)In closing,Harry will debit the drawing account for $24,500 and credit the capital account for $24,500.
• C)In closing,Harry will debit the capital account for $24,500 and credit the drawing account for $24,500.
• D)Harry's retained earnings account was $47,800.

---

Definitions:

Problem Solving

The process of identifying a problem, defining possible solutions, choosing the best option among them, and implementing that choice.

Motivation

Motivation is the internal drive that compels individuals to act or behave in a certain manner towards achieving specific goals or fulfilling needs.

Communication

The exchange of information, feelings, thoughts, or messages between people through speech, writing, signals, or behavior.

Mediating Conflicts

The process of intervening in a dispute or conflict to help the involved parties reach a resolution or understanding through dialogue and negotiation.