Use the following to answer questions 44-49: Shown below is a trial balance for

Question

Use the following to answer questions 44-49: Shown below is a trial balance for Dependable, Inc., on December 31, after the first year of operations, after adjusting entries: Dependable, Inc. Trial Balance December 31, 2005 S 6,200 5,100 9,000 Cash Accounts receivable Office equipment Accumulated Depreciation Accounts payable Capital Stock Retained earnings Dividends Fees earned Salaries expense Advertising expense Depreciation expense S 2,400 3,100 9,000 3,000 6,400 18,200 1,300 $32,700 $32.700 44. Refer to the above data. 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 45. Refer to the above data. The entry to close salaries expense account will: A) Produce a zero balance in that account when posted. B) Include a credit to income summary C) Include a debit to salaries expense D) Include a credit to capital stock Page 9

Explanation / Answer

44. Option a is correct

Produce a zero balance in that account when posted .

Explanation:

Entry to close the fees earned will be:

So as fees earned account is transferred to income summary it produce zero balance in that account when posted.

45.

Option a is correct

Produce a zero balance in that account when posted .

Explanation:

Entry to close the salaries expense will be:

So as salaries expense account is transferred to income summary it produce zero balance in that account when posted.

46. Correct option is=$8800

Explanation:

Net income=fees earned - salaries expense- advertising expense -depriciation expense

=$18200-6400-1300-1700

=$8800

47. Option b is correct=$5800

Retained earnings=opening balance + net income -dividend

=$0+$8800-$3000

=$5,800

48. Correct option is $20,300

Explanation:

=Cash + account receivable +office equipment

=$6200+$5100+9000

=$20,300

Fees earned $18,200 Income summary $18,200

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