The following normal account balances were found on the general ledger before closing entries were prepared:
$$\begin{array} { | l | l | }
\hline \text { Revenue } \$ 1,100 & \text { Cash } \$ 600 \
\hline \text { Expenses } \$ 600 & \text { Accounts Receivable } \$ 400 \
\hline \text { Capital } \$ 7,500 & \text { Withdrawals } \$ 1,000 \
\hline
\end{array}$$
After closing entries are posted,what is the balance in the Capital account?
A)$8,000
B)$7,500
C)$7,000
D)Closing entries do not affect the Capital account.

Question

The following normal account balances were found on the general ledger before closing entries were prepared:
$$\begin{array} { | l | l | } 
\hline \text { Revenue } \$ 1,100 & \text { Cash } \$ 600 \
\hline \text { Expenses } \$ 600 & \text { Accounts Receivable } \$ 400 \
\hline \text { Capital } \$ 7,500 & \text { Withdrawals } \$ 1,000 \
\hline
\end{array}$$
After closing entries are posted,what is the balance in the Capital account?
A)$8,000
B)$7,500
C)$7,000
D)Closing entries do not affect the Capital account.

Quizplus · Accepted Answer

The Answer of The following normal account balances were found on the general ledger before closing entries were prepared:
$$\begin{array} { | l | l | } 
\hline \text { Revenue } \$ 1,100 & \text { Cash } \$ 600 \
\hline \text { Expenses } \$ 600 & \text { Accounts Receivable } \$ 400 \
\hline \text { Capital } \$ 7,500 & \text { Withdrawals } \$ 1,000 \
\hline
\end{array}$$
After closing entries are posted,what is the balance in the Capital account?
A)$8,000
B)$7,500
C)$7,000
D)Closing entries do not affect the Capital account.

The Following Normal Account Balances Were Found on the General