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

question 340

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.)
$$\begin{array} { l r } \text { Retained earnings } &\$ 7,000 \\\text { Dividends } & 9,600 \\\text { Revenus } & 29,000 \\\text { Rent expense } & 3,600 \\\text { Salaries expense } & 7,200 \\\text { Insurance expense } & 920 \\\text { Depr. Experise-equipment } & 500 \\\text { Accum depr.-equiprnent } & 1,500\end{array}$$

• 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:

Tolerance

The ability or willingness to accept and respect the differing views, behaviors, and practices of others without judgment.

Dependence

A state in which an individual relies on a substance or behavior to function normally, often associated with addiction.

Withdrawal

The process or symptoms experienced when ceasing or reducing intake of a psychoactive substance to which one has become addicted.

Addiction

A psychological and physical dependency on substances or behaviors, characterized by compulsive engagement despite adverse consequences.