Answers
The debits to P&L account includes all the expenses
Expenses = Wage expense + Prepaid rent expired + Depreciation recognized
= 240 + 300 + 540
= 1080
Correct choice B
.At the most recent financial year end, the accounting records of Top Ltd show the following information, which include all income and expenses:
Salaries Payable $ 130
Unearned Revenue 200
Wage Expense 240
Service Revenue 1,220
Prepaid Rent Expired 300
Prepaid Insurance 90
Gain from sales of vehicles 120
Depreciation Recognised 540
When closing the income and expense accounts but before closing the P&L acccount, the Debits to the P&L account will total:
A. | $1,540 | |
B. | $1,080 | |
C. | $460 | |
D. | $1,340 |
The debits to P&L account includes all the expenses
Expenses = Wage expense + Prepaid rent expired + Depreciation recognized
= 240 + 300 + 540
= 1080
Correct choice B
.