\begin{tabular}{lll}
& \begin{tabular}{l}
Partial Trial Balance \\
October 31, 20XX
\end{tabular} & \\
Fee Income & & 34,175 \\
Interest Income & 15,125 & 310 \\
Salaries Expense & 1,200 & \\
Office Supplies Expense & 1,000000 \\
Rent Expense & 2,900 & \\
Telephone Expense & 600 & \\
Insurance Expense & 720 & \\
Sheila James, Capital & & \\
Sheila James, Drawing & 4,170 & \\
Taxes Expense & 1,420 & \\
Miscellaneous Expense & 905 &
\end{tabular}

The following information has been made available in connection with the closing of the books as of October 31, 20XX.

\begin{tabular}{ll}
Interest income earned but not received & [tex]$\$[/tex] 100[tex]$ \\
Rent due but unpaid & 150 \\
Expired insurance premiums for the month & 75 \\
Office supplies used during October & 120 \\
Salaries due but unpaid & 750
\end{tabular}

The total amount of expense from all sources to be closed out and transferred to the Income Summary account is:

A. $[/tex]\[tex]$ 24,065$[/tex]

B. [tex]$\$[/tex] 23,965[tex]$

C. $[/tex]\[tex]$ 23,890$[/tex]

D. [tex]$\$[/tex] 22,870$



Answer :

To solve this question, we need to close out and transfer the total amount of expenses from all sources to the Income Summary account. We'll examine each of the expenses listed in the Partial Trial Balance and also include the adjustments provided.

1. Salaries Expense:
- Initial: \[tex]$1,200 - Adjustment: Salaries due but unpaid: \$[/tex]750
- Total: \[tex]$1,200 + \$[/tex]750 = \[tex]$1,950 2. Office Supplies Expense: - Initial: \$[/tex]1,000,000
- Adjustment: Supplies used during October: \[tex]$120 - Total: \$[/tex]1,000,000+\[tex]$120 = \$[/tex]1,000,120

3. Rent Expense:
- Initial: \[tex]$2,900 4. Telephone Expense: - Initial: \$[/tex]600

5. Insurance Expense:
- Initial: \[tex]$720 - Adjustment: Expired insurance premiums for the month: \$[/tex]75
- Total: \[tex]$720 + \$[/tex]75 = \[tex]$795 6. Sheila James, Drawing: - This is not an expense, so it is excluded. 7. Taxes Expense: - Initial: \$[/tex]1,420

8. Miscellaneous Expense:
- Initial: \[tex]$905 Next, we sum up all these adjusted expenses to find the total amount to be closed out and transferred to the Income Summary account: \[ \begin{align*} \text{Total Expenses} &= (\text{Salaries Expense Total} + \text{Office Supplies Expense Total} + \text{Rent Expense} + \text{Telephone Expense} + \text{Insurance Expense Total} + \text{Taxes Expense} + \text{Miscellaneous Expense}) \\ &= (1,950 + 1,000,120 + 2,900 + 600 + 795 + 1,420 + 905) \\ &= \$[/tex]1,008,690
\end{align*}
\]

Therefore, the total amount of expense from all sources to be closed out and transferred to the Income Summary account is \$1,008,690.

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