Use Kellogg Company's adjusted trial balance to answer the next two questions. It was prepared BEFORE closing entries. All amounts of in millions of dollars. Kellogg's fiscal year ended December 28, 2019. Kellogg's Credits Adjusted Trial Balance December 28, 2019 Debits Cash and other current assets 3,431 Property, plant, and equipment, net 3,612 Goodwill and other assets 10,521 Accounts payable and other current liabilities Long-term liabilities Common stock Retained earnings Dividends 769 Sales Interest revenue Cost of goods sold 9,197 Selling and administrative expense 2,523 Depreciation expense 457 Interest expense 291 Income tax expense 321 Totals $_31.122 4,778 9,472 1,026 2,097 13,578 171 S_31.122 5. Kellogg's journal entry to close the revenue and expense accounts should include a: a. Credit to Sales for $13,578 million. b. Debit to Income tax expense for $321 million. Debit to Retained earnings for $2,097 million. d. Credit to Retained earnings for $960 million. c. a. 6. The Retained earnings balance shown on Kellogg's December 28, 2019 balance sheet (i.e., ENDING Retained earnings) is: $3,826 million. b. $3,057 million. c. $2,288 million. d. $2,097 million. 7. On a multiple-step income statement, income from operations is arrived at after considering all except: a. administrative salaries. b. marketing expense. c. cost of goods sold. d. interest expense. 8. On October 9, 2020, Polk Corporation sold merchandise to a customer for $1,000,000 on credit, terms 2/10, n/30. Cost of the merchandise sold was $600,000. The customer paid for the purchase on October 14. What account should Polk Corporation debit on October 14? Polk uses periodic inventory system. Accounts Receivable for $980,000. b. Cash for $1,000,000. Cash for $980,000. d. Accounts Receivable for $1,000,000. a. c. 9. Butterfly, Inc, purchased merchandise from a supplier on October 1, 2020, for $50,000 on account, terms 1/10, n/30. What entry would Butterfly use to record this purchase if the company uses perpetual inventory system. Accounts Payable 50,000 Inventory 50,000 a. 49,500 b. Inventory Accounts Payable 49,500 c. 49,500 Purchases Accounts Payable 49,500 d. Inventory Accounts Payable 50,000 50,000