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

question 140

Multiple Choice

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 revenue accounts?

• A) Debit Revenue accounts $55,200; credit Income Summary $55,200.
• B) Debit Revenue accounts $55,200; credit F. Mercury, Capital $37,000.
• C) Debit Revenue accounts $37,000; credit F. Mercury, Capital $37,000.
• D) Debit Income Summary $55,200; credit Revenue accounts $55,200.
• E) Debit Income Summary $37,000; credit F. Mercury Capital $37,000.

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Definitions:

Chi-squared Distribution

A probability distribution that arises in statistics when estimating how closely an observed distribution matches an expected distribution.

Interval Data

A type of data measurement where the order of the data points is meaningful and the difference between data points is consistent and measurable.

Nominal Data

Information grouped into categories without an inherent numerical value or order, such as colors or gender.

Ordinal Data

Data classified into categories within a specific order or ranking, but without meaningful mathematical differences between those rankings.