Finley Company End-of-Period Spreadsheet For the Year Ended December 31 Adjusted
ID: 2772183 • Letter: F
Question
Finley Company
End-of-Period Spreadsheet
For the Year Ended December 31
Adjusted Trial Balance
Income Statement
Balance Sheet
Account Title
Debit
Credit
Debit
Credit
Debit
Credit
Cash
48,000
48,000
Accounts Receivable
18,000
18,000
Supplies
6,000
6,000
Equipment
57,000
57,000
Accumulated Depreciation
18,000
18,000
Accounts Payable
25,000
25,000
Wages Payable
6,000
6,000
C. Finley, Capital
33,000
33,000
C. Finley, Drawing
3,000
3,000
Fees Earned
155,000
155,000
Wages Expense
63,000
63,000
Rent Expense
27,000
27,000
Depreciation Expense
15,000
15,000
Totals
237,000
237,000
105,000
155,000
132,000
82,000
Net Income (Loss)
50,000
50,000
155,000
155,000
132,000
132,000
The entry to close income summary would be
Select one:
a. debit Income Summary, $155,000; credit C. Finley, Capital, $155,000
b. debit Income Summary, $50,000; credit C. Finley, Capital, $50,000
c. debit C. Finley, Capital, $9,000; credit Income Summary, $9,000
d. debit C. Finley, Capital, $50,000; credit Income Summary, $50,000
Finley Company
End-of-Period Spreadsheet
For the Year Ended December 31
Adjusted Trial Balance
Income Statement
Balance Sheet
Account Title
Debit
Credit
Debit
Credit
Debit
Credit
Cash
48,000
48,000
Accounts Receivable
18,000
18,000
Supplies
6,000
6,000
Equipment
57,000
57,000
Accumulated Depreciation
18,000
18,000
Accounts Payable
25,000
25,000
Wages Payable
6,000
6,000
C. Finley, Capital
33,000
33,000
C. Finley, Drawing
3,000
3,000
Fees Earned
155,000
155,000
Wages Expense
63,000
63,000
Rent Expense
27,000
27,000
Depreciation Expense
15,000
15,000
Totals
237,000
237,000
105,000
155,000
132,000
82,000
Net Income (Loss)
50,000
50,000
155,000
155,000
132,000
132,000
Explanation / Answer
Income earned during the year is transferred to capital account by way of journal entry.
this journla entry is used to transfer income from income statement to capital account. Hence, incoome summery is debited and capital account is credited.
Therefore, correct option is b. debit Income Summary, $50,000; credit C. Finley, Capital, $50,000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.