Shown below is a trial balance for Novelty Toys, Limited, on December 31, after adjusting entries:

\begin{array}{c} { \text { Novelty Toys Limited } } \\{ \text { Trial Balance } } \\ { \text { December } 31,20\_ } \\\begin{array} { | l | r | r | } \hline \text { Cash } & \$ 7,750 & \\\hline \text { Accounts receivable } & 6,375 & \\\hline \text { Office equipment } & 11,250 & \\\hline \text { Accumulated Depreciation } & & \$ 3,000 \\\hline \text { Accounts payable } & & 3,875 \\\hline \text { Share Capital } & & 11,250 \\\hline \text { Retained eamings } & & - 0 \\\hline \text { Dividends } & 3,750 & \\\hline \text { Fees Earned } & & 22,750 \\\hline \text { Salaries expense } & 8,000 & \\\hline \text { Advertising expense } & 1,625 & \\\hline \text { Depreciation expense } & 2,125 & \\\hline & \$ 40,875 & \underline { \$ 40,875 } \\\hline\end{array}\end{array}

-Refer to the above data. The entry to close Salaries Expense account will:
A) Produce a zero balance in that account when posted.
B) Include a credit to Income Summary.
C) Include a debit to Salaries Expense.
D) Include a credit to Share Capital.

A Statement of Changes in Equity Shows

Multiple Choice

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