Use the following end-of-period spreadsheet to answer the question that follow.

Question

Use the following end-of-period spreadsheet to answer the question that follow. Finley Company End-of-Period Spreadsheet For the Year Ended December 31 Adjusted Trial Balance Balance Sheet Income Statement Dr Account Title Dr. 48,000 18,000 Cr. Cr. Dr. Cr. Cash Accounts Receivable 48,000 18,000 6,000 57,000 6,000 57,000 Equipment Accumulated Depreciation Accounts Payable Wages Payable C. Finley, Capital C. Finley, Drawing Fees Earned Wages Expense Rent Expense Depreciation Expense 18,000 25,000 6,000 33,000 18,000 25,000 6,000 33,000 3,000 3,000 155,000 155,000 63,000 27,000 15,000 237,000 63,000 27,000 15.000 105,000 50,000 155,000 155,000 132,000 82,000 50,000 132.000 Net income 155,000

Explanation / Answer

Answer) option c

Debit C.Finley Capital ,$3,000 ; credit C.Finley ,Drawing $3,000

(since drawings normal balance is debit we need to credit it to close its account.Drawings is a personal expense hence debited to capital account , it is not an expense .)

Answer) option c

Debit C.Finley Capital ,$3,000 ; credit C.Finley ,Drawing $3,000

(since drawings normal balance is debit we need to credit it to close its account.Drawings is a personal expense hence debited to capital account , it is not an expense .)

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