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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

Respuesta :

The correct closing entry for the revenues account is "Debit: $55,200 to Revenues Account and Credit: $55,200 to Income Summary Account" based on the information shown on the question above. The Income Summary is a closing account for every income statement related account. Thus, the best journal pair for revenues account is the income summary.

Answer:

Closing entry will be $43400

Explanation:

We have given beginning capital balance, that is credit balance = $37000

Total revenue = $55200

Total expenses = $39800

And withdrawals = $9000

We have to find the closing entry for the revenue account.

We know that closing entry is given by

Closing entry = beginning capital balance + revenue - expenses - withdrawals

So closing entry = $37000+$55200-$39800-$9000 = $43400  

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