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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