The owner's Capital,Withdrawals,and Income Summary accounts for Harmon Repair Company for the accounting period are presented below in T account form after the recording and posting of closing entries: The total amount of expenses for the period is
A)$500.
B)$700.
C)$400.
D)$100.

Question

The owner's Capital,Withdrawals,and Income Summary accounts for Harmon Repair Company for the accounting period are presented below in T account form after the recording and posting of closing entries:  The total amount of expenses for the period is
A)$500. 
B)$700. 
C)$400. 
D)$100.

Quizplus · Accepted Answer

The total amount of expenses for the period can be calculated by subtracting the ending balance of the Income Summary account from the beginning balance. Beginning balance of Income Summary account is $0 and the ending balance is ($700). Therefore, the total amount of expenses for the period is $700.

The Owner's Capital,Withdrawals,and Income Summary Accounts for Harmon Repair Company