A company had $80 000 of Sales revenue and $75 000 of Expenses. Which of the following would be the first of three year- end closing entries?
A)Debit Expenses $75 000 and credit Income summary $75 000.
B)Debit Income summary $5 000 and credit Retained earnings $5 000.
C)Debit Revenues $80 000 and credit Income summary $80 000.
D)Debit Retained earnings $5 000 and credit Income summary $5 000.

Question

Quizplus · Accepted Answer

The first closing entry involves closing revenue accounts to the Income Summary account by debiting Revenues and crediting Income Summary.

A Company Had $80 000 of Sales Revenue and $75