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Aquilera Auto Body, owned by Ms. K. Aguilera performs custom fabrication and bod

ID: 2396216 • Letter: A

Question

Aquilera Auto Body, owned by Ms. K. Aguilera performs custom fabrication and body work on high performance import autos. Below is her Adjusted Trial Balance for the month ending June 30, 2009

Aguilera Auto Body
Adjusted Trial Balance
June 30, 2009

Cash

$53,000

Prepaid Rent

4,000

Inventory

125,000

Supplies

1,200

Tow Truck

23,000

   Accumulated Depreciation-Tow Truck

$2,500

   Accounts Payable

83,900

   Notes Payable

45,000

   K. Aguilera - Capital

75,610

K. Aguilera-Withdrawals

2,000

   Sales

41,000

Rent Expense

1,600

Supplies Expense

800

Utilities Expense

945

Depreciation Expense-Truck

500

What amount would be used to prepare the first closing entry for Aguilera Auto Body?

$2,000

$41,000

$3,845

None of the other answers

$53,000

Aguilera Auto Body
Adjusted Trial Balance
June 30, 2009

Cash

$53,000

Prepaid Rent

4,000

Inventory

125,000

Supplies

1,200

Tow Truck

23,000

   Accumulated Depreciation-Tow Truck

$2,500

   Accounts Payable

83,900

   Notes Payable

45,000

   K. Aguilera - Capital

75,610

K. Aguilera-Withdrawals

2,000

   Sales

41,000

Rent Expense

1,600

Supplies Expense

800

Utilities Expense

945

Depreciation Expense-Truck

500

Explanation / Answer

First closing entry is closing revenue in income summary account ;

So answer is b) $41000

Date account & explanation debit credit Sales 41000 Income summary 41000
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