Question

The F. Mercury, Capital account has a credit balance of $54,000 before closing entries are made. Total revenues for the period are $72,200, total expenses are $48,300, and withdrawals are $15,800. What is the correct closing entry for the expense accounts

Answer 1

Answer:

Given that,

Capital account has a credit balance before closing entries are made = $54,000

Total revenues for the period = $72,200

Total expenses = $48,300

Withdrawals = $15,800

Therefore, the correct closing entry for the expense accounts is as follows:

Income summary A/c Dr. $48,300

       To expenses                           $48,300

(To record the expense account closed)