Answered step by step
Verified Expert Solution
Question
1 Approved Answer
[The following information applies to the questions displayed below.] Shown below is the adjusted Trial Balance for Simon Inc., on December 31, after the first
[The following information applies to the questions displayed below.]
Shown below is the adjusted Trial Balance for Simon Inc., on December 31, after the first year of operations, after adjusting entries:
Simon, Inc. | |||||||
Adjusted Trial Balance | |||||||
December 31 | |||||||
Cash | $ | 1,600 | |||||
Accounts Receivable | 4,000 | ||||||
Office Equipment | 16,800 | ||||||
Accumulated Depreciation | $ | 1,600 | |||||
Capital Stock | 2,400 | ||||||
Retained Earnings | 2,720 | ||||||
Dividends | 960 | ||||||
Service Fees Earned | 21,920 | ||||||
Wages Expense | 3,200 | ||||||
Supplies Expense | 1,120 | ||||||
Depreciation Expense | 960 | ||||||
$ | 28,640 | $ | 28,640 | ||||
The entry to close the Service Fees Earned account will:
Select one:
a. Produce a zero balance in that account when posted.
b. Include a debit to Income Summary.
c. Include a credit to Service Fees Earned.
d. Include a debit to Capital Stock.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started