Given the Following Accounts and Their Adjusted Balances Before Closing

question 20

Multiple Choice

Given the following accounts and their adjusted balances before closing entries are posted, what amount will be posted to Bessie Cool, Capital in the process of closing the Income Summary account? Assume all accounts have normal balances. $$\begin{array} { | l | r | } \hline \text { Bessie Cool, capital } & \$ 7,000 \\\hline \text { Bessie Cool, withdrawals } & 9,600 \\\hline \text { Service Revenue } & 35,500 \\\hline \text { Rent expense } & 3,600 \\\hline \text { Salaries expense } & 7,200 \\\hline \text { Insurarace expense } & 920 \\\hline \text { Depreciation experse, equip. } & 500 \\\hline \text { Accumulated depreciation, equipment. } & 1,500 \\\hline\end{array}$$

• A) $12,180 credit
• B) $21,780 debit
• C) $21,780 credit
• D) $23,280 credit
• E) $28,780 credit

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Definitions:

Damages

Monetary compensation awarded by a court to a person who has suffered loss or harm due to the wrongful act of another.

Expenses Incurred

Costs that have been recognized or are payable due to business activities or transactions.

Breach Of Contract

The violation of any of the agreed-upon terms and conditions of a binding contract.

Special Damages

Compensatory damages that cover specific, quantifiable financial losses suffered by a plaintiff, such as medical bills or lost wages, due to the defendant's wrongdoing.