A company had revenues of $54,500 and expenses of $43,750 for the accounting period. The owner withdrew $6,000 in cash during the same period. Which of the following entries could not be a closing entry?
1)Debit Income Summary $10,750; credit Owner\'s, Capital $10,750.
2)Debit Income Summary $54,500; credit Revenues $54,500.
3)Debit Revenues $54,500; credit Income Summary $54,500.
4)Debit Income Summary $43,750, credit Expenses $43,750.
5)Debit Owner\'s, Capital $6,000, credit Owner\'s, Withdrawals $6,000.
Solution
Answer:
Following shall be closing entries for the company :
1. To close Revenue :
Debit Revenues $54,500; credit Income Summary $54,500
2. To Close Expenses:
Debit Income Summary $43,750, credit Expenses $43,750.
3. To Close Income Summary:
Debit Income Summary $10,750; credit Owner\'s, Capital $10,750
4. To Close Withdrawals:
Debit Owner\'s, Capital $6,000, credit Owner\'s, Withdrawals $6,000.
Hence The closing entry that could not be there is :
Debit Income Summary $54,500; credit Revenues $54,500.
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A company had revenues of $54-500 and expenses of $43-750 for the acco.docx
1. A company had revenues of $54,500 and expenses of $43,750 for the accounting period. The
owner withdrew $6,000 in cash during the same period. Which of the following entries could not
be a closing entry?
1)Debit Income Summary $10,750; credit Owner's, Capital $10,750.
2)Debit Income Summary $54,500; credit Revenues $54,500.
3)Debit Revenues $54,500; credit Income Summary $54,500.
4)Debit Income Summary $43,750, credit Expenses $43,750.
5)Debit Owner's, Capital $6,000, credit Owner's, Withdrawals $6,000.
A company had revenues of $54,500 and expenses of $43,750 for the accounting period. The
owner withdrew $6,000 in cash during the same period. Which of the following entries could not
be a closing entry?
1)Debit Income Summary $10,750; credit Owner's, Capital $10,750.
2)Debit Income Summary $54,500; credit Revenues $54,500.
3)Debit Revenues $54,500; credit Income Summary $54,500.
4)Debit Income Summary $43,750, credit Expenses $43,750.
5)Debit Owner's, Capital $6,000, credit Owner's, Withdrawals $6,000.
Solution
Answer:
Following shall be closing entries for the company :
1. To close Revenue :
2. Debit Revenues $54,500; credit Income Summary $54,500
2. To Close Expenses:
Debit Income Summary $43,750, credit Expenses $43,750.
3. To Close Income Summary:
Debit Income Summary $10,750; credit Owner's, Capital $10,750
4. To Close Withdrawals:
Debit Owner's, Capital $6,000, credit Owner's, Withdrawals $6,000.
Hence The closing entry that could not be there is :
Debit Income Summary $54,500; credit Revenues $54,500.
