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.

Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter22: End-of-fiscal-period Work For A Corporation
Section: Chapter Questions
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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.

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