Refer to the Following Adjusted Trial Balance There Were No New Capital Contributions During the Year

question 112

Multiple Choice

Refer to the following adjusted trial balance. $$\begin{array} { | l | r | r | } \hline \text { Accounts } & { \text { Debit } } & { \text { Credit } } \\\hline \text { Cash } & \$ 1,700 & \\\hline \text { Accounts Receivable } & 8,600 & \\\hline \text { Office Supplies } & 400 & \\\hline \text { Equipment } & 28,100 & \\\hline \text { Accumulated Depreciation-Equipment } & & \$ 2,000 \\\hline \text { Accounts Payable } & & 1,200 \\\hline \text { Salaries Payable } & & 950 \\\hline \text { Unearned Revenue } & & 450 \\\hline \text { Smith, Capital } & & 3,800 \\\hline \text { Smith, Withdrawals } &1,000 & \\\hline \text { Service Revenue } & &55,600 \\\hline \text { Salaries Expense } &20,000\\\hline \text { Supplies Expense } & 2,200 \\\hline \text { Depreciation Expense- Equipment } &2,000\\\hline \text { Total } & \$ 64,000 &\$ 64,000 \\\hline\end{array}$$ There were no new capital contributions during the year.What will the balance of the Smith,Capital
Account be after the closing entries are posted?

• A) $34,200
• B) $31,400
• C) $35,200
• D) $32,400

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Definitions:

Total Fixed Costs

The combined sum of all costs that do not change with the level of production or sales over a short period.

Master Budget

The total of all individual budgets within an organization, projecting all major financial activities over a period.

Flexible Budget

An adaptable budget configured to change with differing levels of activity or volume.

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of several different investments.