Refer to the following adjusted trial balance. $$\begin{array} { | l | r | r | }
\hline \text { Accounts } & { \text { Debit } } & { \text { Credit } } \
\hline \text { Cash } & \$ 1,700 & \
\hline \text { Accounts Receivable } & 8,600 & \
\hline \text { Office Supplies } & 400 & \
\hline \text { Equipment } & 28,100 & \
\hline \text { Accumulated Depreciation-Equipment } & & \$ 2,000 \
\hline \text { Accounts Payable } & & 1,200 \
\hline \text { Salaries Payable } & & 950 \
\hline \text { Unearned Revenue } & & 450 \
\hline \text { Smith, Capital } & & 3,800 \
\hline \text { Smith, Withdrawals } &1,000 & \
\hline \text { Service Revenue } & &55,600 \
\hline \text { Salaries Expense } &20,000\
\hline \text { Supplies Expense } & 2,200 \
\hline \text { Depreciation Expense- Equipment } &2,000\
\hline \text { Total } & \$ 64,000 &\$ 64,000 \
\hline
\end{array}$$ There were no new capital contributions during the year.What will the balance of the Smith,Capital
Account be after the closing entries are posted?
A) $34,200
B) $31,400
C) $35,200
D) $32,400

Question

Refer to the following adjusted trial balance. $$\begin{array} { | l | r | r | } 
\hline \text { Accounts } &  { \text { Debit } } & { \text { Credit } } \
\hline \text { Cash } & \$ 1,700 & \
\hline \text { Accounts Receivable } & 8,600 & \
\hline \text { Office Supplies } & 400 & \
\hline \text { Equipment } & 28,100 & \
\hline \text { Accumulated Depreciation-Equipment } & & \$ 2,000 \
\hline \text { Accounts Payable } & & 1,200 \
\hline \text { Salaries Payable } & & 950 \
\hline \text { Unearned Revenue } & & 450 \
\hline \text { Smith, Capital } & & 3,800 \
\hline \text { Smith, Withdrawals } &1,000 & \
\hline \text { Service Revenue } & &55,600 \
\hline \text { Salaries Expense } &20,000\
\hline \text { Supplies Expense } & 2,200 \
\hline \text { Depreciation Expense- Equipment } &2,000\
\hline \text { Total } & \$ 64,000 &\$ 64,000  \
\hline
\end{array}$$ There were no new capital contributions during the year.What will the balance of the Smith,Capital
Account be after the closing entries are posted?
A) $34,200
B) $31,400
C) $35,200
D) $32,400

Quizplus · Accepted Answer

The balance of the Smith, Capital Account after the closing entries are posted will be $34,200. This is because the closing entries will transfer the net income of $10,400 (Service Revenue - Salaries Expense - Supplies Expense - Depreciation Expense) to the Smith, Capital Account, increasing its balance to $34,200 ($3,800 + $10,400).

Refer to the Following Adjusted Trial Balance There Were No New Capital Contributions During the Year