Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Albert Einstein, Inc. had the following normal account balances for its fiscal year ending December 31, 2010: Service Revenue - $20,000; Rent Expense $12,000;
Albert Einstein, Inc. had the following normal account balances for its fiscal year ending December 31, 2010: Service Revenue - $20,000; Rent Expense $12,000; Utilities Expense - $6,000; Dividends $1,000. Only one of the following entries is a correct closing entry for Albert Einstein, Inc.'s fiscal year ending December 31, 2010. Which of the following is the correct closing entry? A. Debit Retained Earnings for $1,000; Credit Dividends Payable for $1,000 B. Debit Rent Expense for $12,000, Debit Utilities Expense for $6,000; Credit Retained Earnings for $18,000 C. Debit Service Revenue for $20,000; Credit Retained Earnings for $20,000 D. Debit Dividends for $1,000; Credit Retained Earnings for $1,000 Select one: Oa. A. O b. B. O c. C. d. D. Clear my choice
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started