A Company's Ledger Accounts and Their End-Of-Period Balances Before Closing

question 216

Multiple Choice

A company's ledger accounts and their end-of-period balances before closing entries are posted are shown below.What amount will be posted to Retained Earnings in the process of closing the Income Summary account? (Assume all accounts have normal balances.)

• A)$16,780 debit
• B)$7,180 credit
• C)$16,780 credit
• D)$18,280 credit
• E)$23,780 credit

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Definitions:

Axilla

The area of the body under the joint that connects the arm to the shoulder, commonly known as the armpit.

Ambulate

To walk, not be confined to bed.

Flexibility

The ability to adapt to new, different, or changing requirements.

Flexion

A bending movement around a joint in a limb (like the knee or elbow) that decreases the angle between the bones of the limb at the joint.