The Following Normal Account Balances Were Found on the General

question 86

Multiple Choice

The following normal account balances were found on the general ledger before closing entries were prepared: $$\begin{array} { l r l r } \text { Revenue } & \$ 700 & \text { Cash } & \$ 500 \\\text { Expenses } & \$ 400 & \text { Accounts Receivable } & \$ 350 \\\text { Capital } & \$ 7,500 & \text { Withdrawals } & \$ 1,000\end{array}$$
After closing entries are posted, what is the balance in the Capital account?

• A) $7,800
• B) $7,500
• C) $6,800
• D) Closing entries do not affect the Capital account.

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