Question
The F. Mercury, Capital account has a credit balance of $49,000 before closing entries are made. Total revenues for the period are $67,200, total expenses
The F. Mercury, Capital account has a credit balance of $49,000 before closing entries are made. Total revenues for the period are $67,200, total expenses are $45,800, and withdrawals are $13,800. What is the correct closing entry for the expense accounts? Multiple Choice
Debit Income Summary $45,800; credit Expense accounts $45,800.
Debit Expense accounts $49,000; credit F. Mercury, Capital $49,000.
Credit Expense accounts $45,800; debit F. Mercury, Capital $45,800.
Debit Expense accounts $45,800; credit Income Summary $45,800.
Debit Income Summary $45,800; credit F. Mercury Capital $45,800.
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