QUESTION 59 At the end of its first year of operations after

QUESTION 59 At the end of its first year of operations, after adjustments were properly recorded, White, Inc. had the following adjusted account balances: Prepaid Rent Insurance Expense Supplies Expense Accounts Payable Service Revenue Trucks Hages Payable Dividends Interest Revenue 2,000 4,000 8,000 11,000 160,000 66,000 5, 000 3,000 2,000 Accumulated Depreciation-Trucks Interest Expense Accounts Receivable Unearned Revenue Prepaid Insurance Nages Expense Depreciation Expense Common Stock Cash 6,000 4, 000 39,000 1,000 2,000 92,000 6, 000 45,000 4, 000 In preparing the closing entries, the DEBIT to the Income Summary account and credit to Retained Earnings to transfer net income to Retained Earnings will be: O $160,000 O 162,000 O $46,000 $48,000 None of the above

Solution

Answer is $48000

Revenue
Service Revenue	1,60,000
Interest Revenue	2,000
Total	1,62,000
Expenses
Insurance expenses	4,000
Supplies Expenses	8,000
Interest Expenses	4,000
Wage Expenses	92,000
Depreciation expenses	6,000
Total	1,14,000
Net Income	48,000