Use the following account balances from the adjusted trial balance of ABC Consulting:AccountDebit BalanceCredit Balance Cash 20,500 Accounts Payable 2,000 B. Conway, Drawing 600 B. Conway, Capital 13,000 Fees Revenue 18,000 Salary Expense 2,600 Rent Expense 3,000 Supplies Expense 1,900 Advertising Expense 800 Select the correct closing entry that ABC Consulting would make to close the income summary account at the end of the accounting period.
A. debit B. Conway, Capital $600 credit B. Conway, Drawing for $600.
B. debit Income Summary $9,700 and credit B. Conway, Capital for $9,700.
C. debit B. Conway, Capital $18,000 and credit Income Summary for $18,000.
D. debit B. Conway, Capital $9,700 and credit Income Summary for $9,700.
Answer: B
You might also like to view...
Nonrecurring items such as extraordinary income and disposal of a segment require separate earnings per share disclosure
Indicate whether the statement is true or false
Taxes are not an important consideration in forecasting cash flows
Indicate whether the statement is true or false
SW Inc.'s preferred stock, which pays a $5 dividend each year, currently sells for $62.50. The company's marginal tax rate is 40 percent. What is the cost of preferred stock, rps, that should be included in the computation of the SW Inc.'s weighted average cost of capital (WACC)??
A. ?10.00 percent B. ?4.00 percent C. ?5.00 percent D. ?8.00 percent E. ?2.00 percent
Which alternative will increase the probability of detecting a shift in the process average?
A) increasing the control limit spread B) taking smaller samples C) taking smaller samples more frequently D) taking larger samples more frequently