Jenning Co -Refer to the Trial Balance for Jenning Co

question 194

Multiple Choice

Jenning Co.
Jenning Co.adjusts its books each month but closes its books at the end of the year.The trial balance at July 31 before adjustments is as follows:
$\begin{array}{lr}&\text { Debit }&\text {Credit }\\\text { Cash } & \$ 12,920 \\\text { Accounts Receivable } & 9,620 \\\text { Supplies } & 1,400 \\\text { Prepaid Insurance } & 3,120 \\\text { Equipment } & 26,000\\\text { Accumulated Depreciation-Equipment } && \$ 10,400 \\\text { Unearned Service Revenue } && 6,500 \\\text { Capital Stock } && 7,190 \\\text { Retained Earnings } && 23,500\\\text { Dividends } & 1,560 \\\text { Service Revenue } &&16,510 \\\text { Wages and Salaries Expense } & 7,800 \\\text { Utilities Expense } & 380 \\\text { Rent Expense } & \underline{1,300} \\& \underline{\$ 64,100}& \underline{\$64,000} \\\end{array}$
-Refer to the trial balance for Jenning Co. ?
Employees are owed $750 for services since the last payday in July,to be paid the first week in August.The amount to be reported in the July income statement for salaries expense is

• A)$750.
• B)$8,550.
• C)$7,050.
• D)$7,800.

---

Definitions:

Common Stock Market

A marketplace for the buying and selling of equity securities or shares representing ownership in publicly traded companies.

Dividends

Payments made by a corporation to its shareholders, usually in the form of cash or additional shares, from the company's profits.

Stockholders' Equity

The residual interest or value that shareholders have in a company after all liabilities are subtracted from the assets.

Financial Statement

Documents that provide an overview of a company's financial condition in both short and long term, including balance sheets, income statements, and statements of cash flows.