24) Shown below is an adjusted trial balance for Novelty Toys, Incorporated, on December 31, Year 1: Novelty Toys, Incorporated Adjusted Trial Balance December 31, Year 1 Debit Credit Cash $ 7,750 Accounts Receivable 6,375 Office Equipment 11,250 Accumulated Depreciation $ 3,000 Accounts Payable 3,875 Capital Stock 11,250 Retained Earnings -0- Dividends 3,750 Fees Earned 22,750 Salaries Expense 8,000 Advertising Expense 1,625 Depreciation Expense 2,125 Totals $ 40,875 $ 40,875 The entry to close the Fees Earned account will: A) Produce a zero balance in that account when posted. B) Include a debit to Income Summary. C) Include a credit to Fees Earned. D) Include a debit to Capital Stock.

24) Shown below is an adjusted trial balance for Novelty Toys, Incorporated, on December 31, Year 1: Novelty Toys, Incorporated Adjusted Trial Balance December 31, Year 1 Debit Credit Cash $ 7,750 Accounts Receivable 6,375 Office Equipment 11,250 Accumulated Depreciation $ 3,000 Accounts Payable 3,875 Capital Stock 11,250 Retained Earnings -0- Dividends 3,750 Fees Earned 22,750 Salaries Expense 8,000 Advertising Expense 1,625 Depreciation Expense 2,125 Totals $ 40,875 $ 40,875 The entry to close the Fees Earned account will: A) Produce a zero balance in that account when posted. B) Include a debit to Income Summary. C) Include a credit to Fees Earned. D) Include a debit to Capital Stock.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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