The Following Normal Account Balances Were Found on the General

question 10

Multiple Choice

The following normal account balances were found on the general ledger before closing entries were prepared:
$$\begin{array} { | l | l | } \hline \text { Revenue } \$ 1,100 & \text { Cash } \$ 600 \\\hline \text { Expenses } \$ 600 & \text { Accounts Receivable } \$ 400 \\\hline \text { Capital } \$ 7,500 & \text { Withdrawals } \$ 1,000 \\\hline\end{array}$$
After closing entries are posted,what is the balance in the Capital account?

• A)$8,000
• B)$7,500
• C)$7,000
• D)Closing entries do not affect the Capital account.

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