Shown below is a trial balance for Novelty Toys, Inc., on December 31, after adjusting entries:

Novelty Toys, Inc. Trial Balance December 31, 20__
Cash	$ 15,300
Accounts receivable	12,600
Office equipment	21,900
Accumulated Depreciation		$ 5,700
Accounts payable		7,600
Capital Stock		22,200
Retained earnings		0
Dividends	7,200
Fees earned		44,000
Salaries expense	15,400
Advertising expense	3,100
Depreciation expense	4,000
	$ 79,500	$ 79,500

 

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1) Net income for the period equals: (Ipts) 2) After closing the accounts, Retained Earnings at December 31 equals: (Ipts) 3) The total debits in the After-Closing Trial Balance will equal: (Ipts) 4) Income Summary will have what balance before it is closed? Ipts) 5) Assume instead that Fees Earned totaled $20,000 for the fiscal year. After closing revenue and expenses to income summary, would income summary account have a net debit or credit balance? 1) Net income for the period equals: (Ipts) 2) After closing the accounts, Retained Earnings at December 31 equals: (Ipts) 3) The total debits in the After-Closing Trial Balance will equal: (Ipts) 4) Income Summary will have what balance before it is closed? Ipts) 5) Assume instead that Fees Earned totaled $20,000 for the fiscal year. After closing revenue and expenses to income summary, would income summary account have a net debit or credit balance?

Answer rating: 100% (QA)

1 Net income for the period is 21500 as calculated below Fees earned 44000 Less Salaries expenses 15... View the full answer