QUESTION 59 At the end of its first year of operations, after adjustments were p

Question

QUESTION 59 At the end of its first year of operations, after adjustments were properly recorded, White, Inc. had the following adjusted account balances: Prepaid Rent Insurance Expense Supplies Expense Accounts Payable Service Revenue Trucks Hages Payable Dividends Interest Revenue 2,000 4,000 8,000 11,000 160,000 66,000 5, 000 3,000 2,000 Accumulated Depreciation-Trucks Interest Expense Accounts Receivable Unearned Revenue Prepaid Insurance Nages Expense Depreciation Expense Common Stock Cash 6,000 4, 000 39,000 1,000 2,000 92,000 6, 000 45,000 4, 000 In preparing the closing entries, the DEBIT to the Income Summary account and credit to Retained Earnings to transfer net income to Retained Earnings will be: O $160,000 O 162,000 O $46,000 $48,000 None of the above

Explanation / Answer

Answer is $48000

Revenue Service Revenue        1,60,000 Interest Revenue              2,000 Total        1,62,000 Expenses Insurance expenses              4,000 Supplies Expenses              8,000 Interest Expenses              4,000 Wage Expenses            92,000 Depreciation expenses              6,000 Total        1,14,000 Net Income            48,000

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