An adjusted trial balance is given below. What will be the final balance in the Smith, Capital account after recording the closing entries?
A)$37,800
B)$12,700
C)$24,000
D)$36,800

Question

An adjusted trial balance is given below.  What will be the final balance in the Smith, Capital account after recording the closing entries?
A)$37,800 
B)$12,700 
C)$24,000 
D)$36,800

Quizplus · Accepted Answer

To find the final balance in the Smith, Capital account after recording the closing entries, we need to look at the credit balance in the account in the adjusted trial balance, which is $37,800. This represents the total amount of net income earned by the company during the period, which is transferred to the capital account through the closing entries. Therefore, the final balance in the Smith, Capital account after recording the closing entries will be $37,800.

An Adjusted Trial Balance Is Given Below