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

question 160

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

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The exposure to potential financial harm or loss of property value, particularly in the case of goods during a transaction.

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