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:

Level of Service

A measure of the quality and efficacy of a service provided to customers, often evaluated based on customer satisfaction and performance metrics.

Specialty Store

A type of retailer that concentrates on a limited number of complementary merchandise categories in a relatively small store.

Expert Sales Associates

Highly knowledgeable and skilled retail employees, proficient in assisting customers and enhancing the shopping experience.

Manufacturer

A company or individual engaged in the production of goods utilizing raw materials, components, or assemblies, often on a large scale.