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:

Traditional

Refers to the ideas, customs, and social behaviors that are passed down within a society from generation to generation.

Collectivism

A cultural value that emphasizes the importance of the group over the individual, prioritizing group goals and solidarity.

Individualism

A cultural orientation emphasizing the importance of personal goals, autonomy, and rights above those of the group or society.

Flexibility

The capacity to adapt to new, different, or changing requirements and conditions.