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 Salaries Expense account will: a. Include a debit to Income Summary. b. Include a credit to Capital Stock. c. Transfer the total of Salaries Expense directly to Retained Earnings. d. Include a debit to Salaries Expense.
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 Salaries Expense account will: a. Include a debit to Income Summary. b. Include a credit to Capital Stock. c. Transfer the total of Salaries Expense directly to Retained Earnings. d. Include a debit to Salaries Expense.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Shown below is an adjusted
|
Novelty Toys, Incorporated |
||
|
Adjusted Trial Balance |
||
|
December 31, Year 1 |
||
|
|
Debit |
Credit |
|
Cash |
$ 7,750 |
|
|
|
6,375 |
|
|
Office Equipment |
11,250 |
|
|
|
|
$ 3,000 |
|
Accounts Payable |
|
3,875 |
|
Capital Stock |
|
11,250 |
|
|
|
-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 Salaries Expense account will:
a.
Include a debit to Income Summary.
b.
Include a credit to Capital Stock.
c.
Transfer the total of Salaries Expense directly to Retained Earnings.
d.
Include a debit to Salaries Expense.
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