The Adjusted Balances for Tomas Co

question 74

Multiple Choice

The adjusted balances for Tomas Co. are listed below.
Cash, $20,000
Accounts Receivable, $2,500
Prepaid Insurance, $3,500
Equipment, $15,000
Accumulated Depreciation, $2,000
Accounts Payable, $4,000
J. Tomas, Capital, $30,000
J. Tomas, Drawing, $10,000
Income from Services, $35,000
Wages Expense, $12,000
Rent Expense, $8,000
The entry to close the drawing account would involve a

• A) credit to J. Tomas, Drawing, $10,000.
• B) debit to Income Summary, $10,000.
• C) credit to J. Tomas, Capital, $10,000.
• D) debit to Income from Services, $10,000.

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Definitions:

Fulfilment

The achievement of something desired, promised, or predicted, leading to satisfaction or happiness.

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A prediction or expectation about a situation or behavior that causes the prediction to be fulfilled by influencing the situation or people's behavior.

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A phrase indicating the process of dedicating significant effort and time to learning or mastering a subject matter.

Poorly

In an unsatisfactory, inadequate, or unsuccessful manner, often describing performance or condition.