A Company's Ledger Accounts and Their End-Of-Period Balances Before Closing

question 200

Multiple Choice

A company's ledger accounts and their end-of-period balances before closing entries are posted are shown below.What amount will be posted to Retained Earnings in the process of closing the Income Summary account? (Assume all accounts have normal balances.)
$\begin{array}{|l|r|}\hline \text { Retained earnings } & \$ 7,000 \\\hline \text { Dividends } & 9,600 \\\hline \text { Service Revenue } & 29,000 \\\hline \text { Rent expense } & 3,600 \\\hline \text { Salaries expense } & 7,200 \\\hline \text { Insurance expense } & 920 \\\hline \text { Depr. Expense - equipment } & 500 \\\hline \text { Accum depr. - equipment } & 1,500\\\hline \end{array}$

• A) $16,780 debit
• B) $7,180 credit
• C) $16,780 credit
• D) $18,280 credit
• E) $23,780 credit

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Definitions:

Outsource

The practice of hiring third-party vendors to perform services or produce goods that were previously done in-house, often to reduce costs or access specialized skills.

Low Bidder

In procurement, it refers to the entity that offers the lowest price to supply goods or services in a competitive bidding process.

Expensive Bidder

A term that does not correspond to a specific widely recognized concept in business or economics, thus NO.