For the year ended December 31,a company had revenues of $187,000 and expenses of $109,000.$37,000 in dividends were paid during the year.Which of the following entries could not be a closing entry?
A)Debit Income Summary $78,000; credit Retained earnings $78,000.
B)Debit Retained earnings $37,000; credit Dividends $37,000.
C)Debit revenues $187,000; credit Income Summary $187,000.
D)Debit Income Summary $109,000,credit expenses $109,000.
E)Debit Income Summary $187,000; credit revenues $187,000.

Question

Quizplus · Accepted Answer

Explanation: Closing entries involve transferring balances from temporary accounts to permanent accounts. Revenues are closed by debiting them, not crediting.

For the Year Ended December 31,a Company Had Revenues of $187,000