Bank of America had the following adjusted trial balance on December 31, 2022: Cash $15,000 Accounts Receivable 16,500 Supplies 5,400 Prepaid Rent 108,000 Land 21,000 Accounts Payable Unearned Service Revenue Common Stock Retained Earnings Dividends Service Revenue Salaries Expense Rent Expense Utilities Expense Supplies Expense Select one: 9,900 $3,000 10,500 132,000 31,500 a. Credit of $1,200 b. Credit of $11,100 c. Debit of $1,200 d. Debit of $11,100 e. Debit of $8,700 468,750 456,000 2,700 4,950 6,300 $645,750 $645,750 The closing entry to close the Income Summary would include which entry to Retained Earnings? D
Bank of America had the following adjusted trial balance on December 31, 2022: Cash $15,000 Accounts Receivable 16,500 Supplies 5,400 Prepaid Rent 108,000 Land 21,000 Accounts Payable Unearned Service Revenue Common Stock Retained Earnings Dividends Service Revenue Salaries Expense Rent Expense Utilities Expense Supplies Expense Select one: 9,900 $3,000 10,500 132,000 31,500 a. Credit of $1,200 b. Credit of $11,100 c. Debit of $1,200 d. Debit of $11,100 e. Debit of $8,700 468,750 456,000 2,700 4,950 6,300 $645,750 $645,750 The closing entry to close the Income Summary would include which entry to Retained Earnings? D
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Bank of America had the following adjusted trial balance on December 31, 2022:
Cash
$15,000
Accounts Receivable
16,500
Supplies
5,400
Prepaid Rent
108,000
Land
21,000
Accounts Payable
Unearned Service Revenue
Common Stock
Retained Earnings
Dividends
Service Revenue
Salaries Expense
Rent Expense
Utilities Expense
Supplies Expense
Select one:
9,900
a. Credit of $1,200
b. Credit of $11,100
c. Debit of $1,200
d. Debit of $11,100
e. Debit of $8,700
GO°F
$3,000
10,500
132,000
31,500
468,750
456,000
2,700
4,950
6,300
$645,750 $645,750
The closing entry to close the Income Summary would include which entry to Retained Earnings?
K
Expert Solution
Step 1: Preparation of Closing entries
Preparation of closing entries is a method used by the business entity to close its temporary account and transfer its balance to retained earnings account. The Income Summary Account is used to close these temporary accounts.income, gain, Expenses, and losses are considered as the temporary accounts.
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