30. A summary of selected ledger accounts appear below for Frost Auto Services f

Question

30. A summary of selected ledger accounts appear below for Frost Auto Services for the 2007 calendar ycar after closing entries have been posted. What was the Net Income for the period? Hint: no calewlations are required Frost Capleal 3000 101.07 7,000 12.31.07 Income Summary 12,000 5,000 7,000 1231.07 2,000 Frost Withdrawals 6.30.07 1,000 9.02.07 1,000 2,000 1231.07 a. $2,000 b. $3,000 c. $5,000 d. $7,000 e. $12,000 GOURMET CONSULTING Balance Sheet Assets Total current assets $75,975 Property, plant, and equipment: Office equipment Less accumulated depreciation $14,000 400 Total property, plant, and equipment 13,600 $89,575 Total assets Current liabilities S 2,100 140 3,000 Accounts payable Salaries payable Unearned fees Total liabilities S 5,240 Owner's Equity Jolene Upton, capital Total liabilities and owner's equity 84,335 $89,575

Explanation / Answer

Answer is d. $ 7000. Explanation: The Net income for the year is $ 7000 as is the net balance leeft in income summary account and has been transferred to Capital Account.

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