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

question 148

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.)
$\begin{array}{|l|r|}\hline \text { Retained earnings } & \$ 7,000 \\\hline \text { Dividends } & 9,600 \\\hline \text { Revenue } & 29,000 \\\hline \text { Rent expense } & 3,600 \\\hline \text { Salaries expense } & 7,200 \\\hline \text { Insurance expense } & 920 \\\hline \text { Depr. Expense - equipment } & 500 \\\hline \text { Accum depr. - equipment } & 1,500\\\hline\end{array}$

• 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:

Tert-Butyl Alcohol

An organic compound with the formula (CH3)3COH, used as a solvent and in the preparation of other compounds.

Non-Bonding Lone Pairs

Pairs of valence electrons on an atom that are not involved in chemical bonding but influence the molecule's geometry and physical properties.

Covalent Bonds

Chemical bonds formed by the sharing of electron pairs between atoms, contributing to the stability and structure of molecules.

Polar

Describes a molecule with an uneven distribution of electron density, leading to a partial positive charge on one side and a partial negative charge on the other.