Question
The F. Mercury, Capital account has a credit balance of $45,000 before closing entries are made. Total revenues for the period are $63,200, total expenses
The F. Mercury, Capital account has a credit balance of $45,000 before closing entries are made. Total revenues for the period are $63,200, total expenses are $43,800, and withdrawals are $12,200. What is the correct closing entry for the expense accounts?
Debit Income Summary $43,800; credit Expense accounts $43,800.
Debit Expense accounts $45,000; credit F. Mercury, Capital $45,000.
Credit Expense accounts $43,800; debit F. Mercury, Capital $43,800.
Debit Expense accounts $43,800; credit Income Summary $43,800.
Debit Income Summary $43,800; credit F. Mercury Capital $43,800.
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