An Adjusted Trial Balance for a Sole Proprietorship Is Given

question 204

Multiple Choice

An adjusted trial balance for a sole proprietorship is given below.There were no new capital contributions during the year. $$\begin{array} { | l | r | r | } \hline & { \text { Debit } } & \text { Credit } \\\hline \text { Cash } & \$ 14,000 & \\\hline \text { Accounts Receivable } & 5,000 & \\\hline \text { Prepaid Rent } & 800 & \\\hline \text { Merchandise Inventory } & 26,000 & \\\hline \text { Accounts Payable } & & \$ 4,200 \\\hline \text { Salaries Payable } & & 1,500 \\\hline \text { Notes Payable } & & 600 \\\hline \text { Lorenzo, Capital } & &8,000 \\\hline \text { Lorenzo, Withdrawals } &1,000 & \\\hline \text { Sales Revenue } & & 98,500\\\hline \text { Cost of Goods Sold } & 23,000& \\\hline \text { Salaries Expense } & 19,000 & \\\hline \text { Rent Expense } & 15,000 & \\\hline \text { Selling Expense } & 8,400 & \\\hline \text { Supplies Expense } & \underline { 600 }\\\hline \text { Total } & \$ 112,800 & \$ 112,800 \\\hline\end{array}$$ What will be the final balance in the company's Lorenzo,Capital account after recording the closing
Entries?

• A) $39,500
• B) $40,500
• C) $31,000
• D) $7,000

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Definitions:

Secondary Amine

A type of amine where the nitrogen atom is attached to two organic substituents and one hydrogen.

Primary Amine

Organic compounds containing nitrogen, characterized by a nitrogen atom attached to one alkyl or aryl group.

Butylethylamine

A compound consisting of butyl and ethyl groups attached to an amine functional group.

Butylpropylamine

Butylpropylamine is an organic compound characterized by its structure comprising both butyl and propyl amine groups, and it's used in various chemical syntheses and applications.