Question

Greenport Island Company Adjusted Trial Balance December 31, 2020 US Dollar Debit Credit $ 23,000 $ 10,000 $ 156,000 $ 50,000 $ 520,000 $ 69,700 $ 420,000 $ 47,000 $ 16,000 $ 195,000 $ 421,200 $ 18.000 $ 41,600 Accounts Payable Accounts Receivable Accumulated Depreciation - Building Accumulated Depreciation - Equipment Building Cash Common Stock Depreciation Expense Dividends Equipment Fees Earned Interest Expense Insurance Expense Interest Payable Land Miscellaneous Expense Notes Payable Prepaid Insurance Expense Rent Expense Retained Earnings Sales Revenue Supplies Supplies Expense Unearned Sales Revenue Utilities Expense Wages Expense Wages Payable $ 3,300 $ 260,000 $ 6,900 $ 300,000 $ 74,000 $ 47,000 $ 138,300 $ 30,200 $ 60,300 $ 14,200 $ 33,300 $ 5,000 $ 196,600 $ 6,000 1,581,300 $ 1,581,300 $ When working through the closing entries at year-end, the amount required to close out the Income Summary account once all expenses and revenues have been closed is... $ 1,100 b $ 34,400 þ$ 75, 100 b $108,400 b None of the above.

Answer 1

Answer)

Calculation of amount required to close Income Summary Account

	Amount
Items of Revenue:
Fees Earned	$     421,200
Sales Revenue	$        30,200
Total (A)	$     451,400
Items of Expenses:
Depreciation expense	$        47,000
Interest Expense	$        18,000
Insurance Expense	$        41,600
Miscellaneous Expense	$          6,900
Rent Expense	$        47,000
Supplies Expense	$        14,200
Utilities Expense	$          5,000
Wages Expense	$     196,600
Total (B)	$     376,300
Net Amount in transferred to retained earnings (A - B)	$        75,100

Therefore the amount required to close Income summary account is $ 75,100.

Income Summary

Greenport Island Company
Income Summary Account for the year Ended December 31,2020
Particulars	Amount	Particulars	Amount
Depreciation expense	$     47,000	Fees Earned	$ 421,200
Interest Expense	$     18,000	Sales Revenue	$    30,200
Insurance Expense	$     41,600
Miscellaneous Expense	$        6,900
Rent Expense	$     47,000
Supplies Expense	$     14,200
Utilities Expense	$        5,000
Wages Expense	$   196,600
Retained earnings (Balancing Figure)	$     75,100
Total	$   451,400	Total	$ 451,400