The F. Mercury, Capital account has a credit balance of $37,000 before closing entries are made. Total revenues for the period are $55,200, total expenses are $39,800, and withdrawals are $9,000.
-What is the correct closing entry for the expense accounts?
A) Debit Expense accounts $39,800; credit Income Summary $39,800.
B) Debit Expense accounts $37,000; credit F. Mercury, Capital $37,000.
C) Credit Expense accounts $39,800; debit F. Mercury, Capital $39,800.
D) Debit Income Summary $39,800; credit F. Mercury Capital $39,800.
E) Debit Income Summary $39,800; credit Expense accounts $39,800.

Question

The F. Mercury, Capital account has a credit balance of $37,000 before closing entries are made. Total revenues for the period are $55,200, total expenses are $39,800, and withdrawals are $9,000. 
-What is the correct closing entry for the expense accounts?
A) Debit Expense accounts $39,800; credit Income Summary $39,800.
B) Debit Expense accounts $37,000; credit F. Mercury, Capital $37,000.
C) Credit Expense accounts $39,800; debit F. Mercury, Capital $39,800.
D) Debit Income Summary $39,800; credit F. Mercury Capital $39,800.
E) Debit Income Summary $39,800; credit Expense accounts $39,800.

Quizplus · Accepted Answer

The Answer of The F. Mercury, Capital account has a credit balance of $37,000 before closing entries are made. Total revenues for the period are $55,200, total expenses are $39,800, and withdrawals are $9,000. 
-What is the correct closing entry for the expense accounts?
A) Debit Expense accounts $39,800; credit Income Summary $39,800.
B) Debit Expense accounts $37,000; credit F. Mercury, Capital $37,000.
C) Credit Expense accounts $39,800; debit F. Mercury, Capital $39,800.
D) Debit Income Summary $39,800; credit F. Mercury Capital $39,800.
E) Debit Income Summary $39,800; credit Expense accounts $39,800.

The F Mercury, Capital Account Has a Credit Balance of $37,000