Hot Tamale Company had $120 000 of revenues and $125 000 of expenses. No dividends were paid. The second of the year- end closing entries should include which of the following line items?

Question

Quizplus · Accepted Answer

The second closing entry involves closing out expenses to the Income Summary account. Therefore, you debit Income Summary for the total expenses amount of $125,000.

Hot Tamale Company Had $120 000 of Revenues and $125