Question

a summary of selected ledger accounts appear below for s. ball for the current calendar year.
answer questions 1 through 4 based on this information.

s. ball, capital
12/31 6,500 | 1/1 27,000
| 12/31 4,250

s. ball, withdrawals
3/31 2,000 | 12/31 6,000
10/31 3,000 |
12/22 1,000 |

income summary
12/31 12,750 | 12/31 17,000
12/31 4,250 |

1. what was the total revenue?

( ) $27,750
( ) $17,000
( ) $12,750
( ) $10,250

Explanation:

Analyze the Income Summary T-account

$$ \text{Income Summary} =
LATEXBLOCK0
$$

Identify the closing entry for revenue

$$ \text{Total Revenue} = \text{Credit entry to Income Summary on 12/31} = \$17,000 $$

Identify the closing entry for expenses

$$ \text{Total Expenses} = \text{Debit entry to Income Summary on 12/31} = \$12,750 $$

Answer:

• (A) $27,750
• (B) $17,000 (Correct answer)
• (C) $12,750
• (D) $10,250