The Following Information Is Available for Brendon Company Before Closing

question 219

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 Retained earnings?
$$\begin{array} { l r } \text { Retained earnings } & \$ 112,000 \\\text { Dividends } & 32,000 \\\text { Fees earned } & 187,000 \\\text { Depreciation Expense-Equipment } & 12,000 \\\text { Wages expense } & 71,400 \\\text { Interest expense } & 3,300 \\\text { Insurarnce expense } & 11,700 \\\text { Rent expense } & 24,200\end{array}$$

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

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Definitions:

Unlimited Liability

A legal obligation where business owners are personally responsible for all of the debts of the business.

Cooperatives

A type of organization owned and operated by a group of individuals for their mutual benefit.

Sole Proprietorship

A business owned and operated by a single individual, with no legal distinction between the owner and the business entity.