Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. a business has the following account balances on d

A business has the following account balances on December 31, 2020, after posting all adjusting...

70.2K

Verified Solution

Question

Accounting

image

image

A business has the following account balances on December 31, 2020, after posting all adjusting entries. All accounts have normal balances. Balances General Ledger accounts Owner's drawings n $15,600 Accounts receivable $12,200 Depreciation expense $21,500 $3,400 Prepaid expense Accumulated depreciation 79,100 Advertising expense $9,800 Unearned revenue $5,700 $78,500 Wage expense Owner's Capital $98,700 Service revenue $198,000 Rent expense $49,300 Interest revenue $2,900 For each of the following questions, select the correct response using the drop-down menus. Part A: When the closing entry is prepared for the Revenue accounts: Income summary will be debited For each of the following questions, select the correct response using the drop-down menus. Part A: When the closing entry is prepared for the Revenue accounts: Income summary will be debited Part B: When the closing entry is prepared for the expense accounts, Income Summary will be: debited for $162,500 - Part C: When the closing entry is prepared for Income Summary, the Owner's Capital account will be: credited for $38,900 - Part D: After the closing entries are journalized, the post-closing credit balance in Owner's Capital will be: $124,900

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students