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

question 65

Multiple Choice

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

• A)Debit Retained earnings $120 000.
• B)Debit Income summary $120 000.
• C)Credit Retained earnings $120 000.
• D)Credit Income summary $120 000.