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Shown below is an adjusted trial balance for Novelty Toys, Incorporated, on December 25) 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 11,250 Capital Stock Retained Earnings -0- Dividends 3,750 22,750 Fees Earned Salaries Expense 8,000 Advertising Expense 1,625 2,125 Depreciation Expense $ 40,875 $ 40,875 Totals The entry to close Salaries Expense account will: A) Transfer the total of Salaries Expense directly to Retained Earnings. B) Include a debit to Income Summary. C) Include a debit to Salaries Expense. D) Include a credit to Capital Stock.

Shown below is an adjusted trial balance for Novelty Toys, Incorporated, on December 25) 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 11,250 Capital Stock Retained Earnings -0- Dividends 3,750 22,750 Fees Earned Salaries Expense 8,000 Advertising Expense 1,625 2,125 Depreciation Expense $ 40,875 $ 40,875 Totals The entry to close Salaries Expense account will: A) Transfer the total of Salaries Expense directly to Retained Earnings. B) Include a debit to Income Summary. C) Include a debit to Salaries Expense. D) Include a credit to Capital Stock.

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 17E: Income Statement and Retained Earnings Huff Company presents the following items derived from its...
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25) 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 11,250 Capital Stock -0- Retained Earnings Dividends 3,750 22,750 Fees Earned Salaries Expense 8,000 Advertising Expense 1,625 2,125 Depreciation Expense $ 40,875 $ 40,875 Totals The entry to close Salaries Expense account will: A) Transfer the total of Salaries Expense directly to Retained Earnings. B) Include a debit to Income Summary. C) Include a debit to Salaries Expense. D) Include a credit to Capital Stock.
Transcribed Image Text:25) 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 11,250 Capital Stock -0- Retained Earnings Dividends 3,750 22,750 Fees Earned Salaries Expense 8,000 Advertising Expense 1,625 2,125 Depreciation Expense $ 40,875 $ 40,875 Totals The entry to close Salaries Expense account will: A) Transfer the total of Salaries Expense directly to Retained Earnings. B) Include a debit to Income Summary. C) Include a debit to Salaries Expense. D) Include a credit to Capital Stock.
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