An Adjusted Trial Balance Is Shown Below What Will the Final Balance in Capital Be After the l

question 127

Multiple Choice

An adjusted trial balance is shown below. $$\begin{array} { | l | r | r | } \hline &{ \text { Debit } } & \text { Credit } \\\hline \text { Cash } & \$ 12,600 & \\\hline \text { Accounts receivable } & 2,400 & \\\hline \text { Prepaid rent } & 800 & \\\hline \text { Inventory } & 28,000 & \\\hline \text { Accounts payable } & & \$ 4,200 \\\hline \text { Salary payable } & & 1,000 \\\hline \text { Notes payable } & & 800 \\\hline \text { Capital } & & 13,800 \\\hline \text { Withdrawals } & 1,000 & \\\hline \text { Sales revenue } & & 96,000 \\\hline \text { Sales reburns and allowances } & 1,600 & \\\hline \text { Sales discounts } & 400 & \\\hline \text { Cost of goods sold } & 25,000 & \\\hline \text { Salary expense } & 21,000 & \\\hline \text { Rent expense } & 14,000 & \\\hline \text { Amortization expense } & 8,500 & \\\hline \text { Supplies expense } & 500 & \\\hline \text { Total } & \$ 115,800 & \$ 115,800 \\\hline\end{array}$$ What will the final balance in Capital be after the closing entries?

• A)$37,800
• B)$12,700
• C)$24,000
• D)$36,800

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Definitions:

Abstractly And Critically

Thinking in a way that is not tied to concrete realities and involves careful judgement and evaluation.

Postconventional

Pertains to a level of moral reasoning that is beyond social conventions, where actions are judged based on ethical principles rather than societal norms or expectations.

Cognitive Development

The process of growth and change in intellectual capabilities that occurs as people age, involving learning, memory, problem-solving, and decision-making.

Formal Operational

The stage of cognitive development in Piaget’s theory characterized by the ability to think logically about abstract concepts.