Use the following account balances from the adjusted trial balance columns of Goody Chocolate's worksheet to answer below question. AccountDebit BalanceCredit Balance Cash 10,000 Merchandise Inventory 4,000 Accounts Payable 2,200 A. Goody, Drawing 1,000 A. Goody, Capital 6,000 Sales 24,000 Sales Discounts 200 Purchases 12,000 Salaries Expense 7,500 Income Summary 1,500 4,000 Using the adjusted trial balance above, select the correct closing entry that Goody Chocolate would make to close the expense accounts (and cost of goods sold accounts with debit balances) at the end of the accounting period.
A.
| Income Summary | 2,500 | |||
| A. Goody, Capital | 2,500 | |||
B.
| Income Summary | 19,700 | |||
| Sales Discounts | 200 | |||
| Purchases | 12,000 | |||
| Salaries Expense | 7,500 | |||
C.
| Purchases | 12,000 | |||
| Salaries Expense | 7,500 | |||
| Income Summary | 19,500 | |||
D.
| Income Summary | 19,700 | |||
| Expense Accounts | 19,700 | |||
Answer: B
Business
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