Shown Below Are a Company's Ledger Accounts and Their End-Of-Period

question 86

Multiple Choice

Shown below are a company's ledger accounts and their end-of-period balances before closing entries are posted.What amount will be posted to Retained Earnings in the process of closing the Income Summary account? (Assume all accounts have normal balances.)
$\begin{array}{|l|r|}\hline \text { Retained earnings } & \$ 14,000 \\\hline \text { Dividends } & 19,200 \\\hline \text { Sales Revenue } & 58,000 \\\hline \text { Rent expense } & 7,200 \\\hline \text { Salaries expense } & 14,400 \\\hline \text { Insurance expense } & 840 \\\hline \text { Depr. Expense - equipment } & 900 \\\hline \text { Accum depr. - equipment } & 2,500\\\hline\end{array}$

• A)$16,780 debit
• B)$15,460 credit
• C)$48,660 credit
• D)$34,660 credit
• E)$17,960 credit

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