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

question 133

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 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.

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