1 answer

At the most recent financial year end, the accounting records of Top Ltd show the following...

Question:

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


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

.

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