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:

Inventory Holdings

The quantity of goods and materials on hand that are available for sale or for use in production processes.

Production Manager

An individual responsible for overseeing the production process, coordinating all activities involved in the creation of goods or services.

Long-term Debt

Loans or other forms of debt that have a repayment period of more than one year.