An Adjusted Trial Balance Is Given Below What Will Be the Final Balance in the Smith,capital Account

Multiple Choice

An adjusted trial balance is given below. $\begin{array}{|l|l|l|}\hline \text { Accounts } & {\text { Debit }}&\text { Credit } \\\hline \text { Cash } & \$ 13,000 \\\hline \text { Accounts receivable } & 4000 \\\hline \text { Prepaid rent } & 300 \\\hline \text { Inventory } & 26,000 \\\hline \text { Accounts payable } && \$ 4000 \\\hline \text { Salaries payable }& & 500 \\\hline \text { Loan payable } & &600 \\\hline \text { Smith, capital } && 12,700 \\\hline \text { Drawings } & 2000 & \\\hline \text { Sales revenue } & & 92,800 \\\hline \text { Sales returns and } & \\\text { allowances } & 1300 \\\hline \text { Sales discounts } & 500 \\\hline \text { Cost of sales } & 21,000 \\\hline \text { Salaries expense } & 21,000 \\\hline \text { Rent expense } & 12,000 \\\hline \text { Selling expense } & 3200 \\\hline \text { Supplies expense } & 300 \\\hline \text { Total } & \$ 110,600 & \$ 110,600\\\hline\end{array}$ What will be the final balance in the Smith,capital account after recording the closing entries?

A) $38,700
B) $26,000
C) $1700
D) $40,700