Question

Edgar is closing out accounts for his company. He sees that the cost of goods sold has a $19,000 credit balance, supplies has a $1,500 credit balance, interest expense has a $1,250 credit balance, and utilities expense has a $1,300 debit balance. Edgar knows he needs to use an income summary account to close out these temporary accounts. What amount should he put down?

Answer 1

Answer: 20450

Step-by-step explanation: Plato gang

Answer 2

Answer: He should put down $20450.

Explanation:

Since we have given that

Amount he received on cost of goods sold = $19000

Amount he received on supplies = $1500

Amount he received on interest expense = $1250

Amount he paid as utilities expense = $1300

According to question, Edgar knows he needs to use an income summary account to use an income summary account to close out these temporary accounts,

So, Amount he should put down is given by

`\$19000+\$1500+\$1250-\$1300\\\\=\$20450`

Hence, He should put down $20450.