Use the Following Account Balances from the Adjusted Trial Balance

question 37

Multiple Choice

Use the following account balances from the adjusted trial balance columns of RB Auto's
Worksheet to answer below question.

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Select the correct closing entry that RB Auto would make to close the owner's withdrawal account at the end of the accounting period.

• A)debit R. Holloway, Capital $500 and credit R. Holloway, Drawing for $500.
• B)debit R. Holloway, Drawing $500 credit R. Holloway, Capital for $500.
• C)debit Income Summary $500 and credit R. Holloway, Drawing for $500.
• D)debit R. Holloway, Drawing $500 and credit Income Summary for $500.

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Definitions:

Employee Performance

The record of outcomes and behaviors exhibited by an employee in fulfilling their job responsibilities, often assessed against predefined objectives or criteria.

Plan Design

The creation and structuring of a specific plan, such as a benefits plan or a research plan, detailing its components and objectives.

Pension Plans

Financial programs established by employers to provide retirement income for employees, where benefits are determined by factors such as salary history and duration of employment.

Turnover Rates

The percentage of employees leaving a company over a specific period, indicative of workforce stability.