Use This Adjusted Trial Balance to Answer the Following Question

question 114

Multiple Choice

Use this adjusted trial balance to answer the following question. $\begin{array}{c}\text {Dan's Marina}\\\text {Adjusted Trial Balance}\\\text {December 31, 2010}\\\begin{array}{|l|r|r|}\hline \text { Cash } & \$ 2,500 \\\text { Accounts Receivable } & 3,500 \\\text { Supplies } & 1,500 \\\text { Prepaid Insurance } & 2,500 \\\text { Dock } & 12,000\\\text { Accumulated Depreciation-Dock } & & \$ 3,000 \\\text { Accounts Payable } && 6,000 \\\text { Common Stock } && 10,000 \\\text { Dividends } & 4,000 & \\\text { Boat Rentals } & & 17,000\\\text { Depreciation Expense-Dock } & 1,000 & \\\text { Wages Expense } & 6,500 & \\\text { Insurance Expense } & 2,000 & \\\text { Income Taxes Expense } & 500 \\ & \$ 36,000 & \$ 36,000 \\\hline\end{array}\end{array}$

The entry to close the expense accounts includes a

• A) debit to Retained Earnings for $2,000.
• B) debit to Income Summary for $10,000.
• C) debit to Insurance Expense for $2,000.
• D) credit to Retained Earnings for $10,000.

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Definitions:

Simple Interest

Interest calculated only on the principal amount, or on that portion of the principal amount that remains unpaid.

Honda Canada Finance

The financial service arm of Honda in Canada, offering financing options for purchasing Honda vehicles, including loans and leases.

Simple Interest

Interest calculated only on the original amount of money borrowed or invested, without compounding.

GIC

A Guaranteed Investment Certificate (GIC) is a Canadian investment that offers a guaranteed rate of return over a fixed period of time, typically issued by banks or trust companies.