Question: Shown below are a company's ledger accounts and their end-of-period balances before closing entries are posted. Retained earnings Dividends Sales revenue Rent expense Salaries expense Insurance expense Depreciation expense-Equipment $14,000 $19,200 $58,000 $7,200 $14,400 $840 $900 Accumulated depreciation-Equipment $2,500 What amount will be posted to Retained Earnings in the process of closing the Income Summary account? A. $16,780 debit B. $15,460 credit C. $48,660 credit D. $34,660 credit E. $17,960 credit

Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter4: Income Measurement And Accrual Accounting
Section: Chapter Questions
Problem 4.29E: Preparation of a Statement of Retained Earnings from Closing Entries Fisher Corporation reported a...
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Question:
Shown below are a company's ledger accounts and their end-of-period balances before closing entries
are posted.
Retained earnings
Dividends
Sales revenue
Rent expense
Salaries expense
Insurance expense
Depreciation expense-Equipment
$14,000
$19,200
$58,000
$7,200
$14,400
$840
$900
Accumulated depreciation-Equipment $2,500
What amount will be posted to Retained Earnings in the process of closing the Income Summary
account?
A. $16,780 debit
B. $15,460 credit
C. $48,660 credit
D. $34,660 credit
E. $17,960 credit
Transcribed Image Text:Question: Shown below are a company's ledger accounts and their end-of-period balances before closing entries are posted. Retained earnings Dividends Sales revenue Rent expense Salaries expense Insurance expense Depreciation expense-Equipment $14,000 $19,200 $58,000 $7,200 $14,400 $840 $900 Accumulated depreciation-Equipment $2,500 What amount will be posted to Retained Earnings in the process of closing the Income Summary account? A. $16,780 debit B. $15,460 credit C. $48,660 credit D. $34,660 credit E. $17,960 credit
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