The Following Information Is Available for Brendon Company Before Closing

question 56

Multiple Choice

The following information is available for Brendon Company before closing the accounts. What will be the amount in the Income Summary account that should be closed to Brendon, Capital? $$\begin{array} { | l | r | } \hline \text { J. Brendon, Capital } & \$ 112,000 \\\hline \text { J. Brendon, Withdrawals } & 32,000 \\\hline \text { Fees earned } & 187,000 \\\hline \text { Depreciation Expense-Equipment } & 12,000 \\\hline \text { Wages expense } & 71,400 \\\hline \text { Interest expense } & 3,300 \\\hline \text { Insurance expense } & 11,700 \\\hline \text { Rent expense } & 24,200 \\\hline\end{array}$$

• A)$80,000.
• B)$32,400.
• C)$42,400.
• D)$43,000.
• E)$64,400.

---

Definitions:

Future Value

The amount of money an investment is expected to grow to over a period of time, considering interest or returns.

Unequal Payments

Payments that vary in amount over a period, commonly seen in loan repayments or investment returns that do not have a fixed payment schedule.

Rate Of Return

The upward or downward movement in the worth of an investment for a predefined interval, calculated as a percentage of the investment's inaugural cost.

Discount Rate

The Discount Rate is the interest rate used to determine the present value of future cash flows in discounted cash flow analysis.