contestada

A company had revenues of $75,000 and expenses of $62,000 for the accounting period. Dividends of $8,000 were paid in cash during the same period. Which of the following entries could not be a closing entry?
a. a debit to the Income Summary and a credit to the Owner's Capital for $13,000
b. a debit to the Income Summary and a credit to the Revenues account for $75,000
c. a debit to the Revenues and a credit to the Income Summary account for $75,000
d. a debit to the Income Summary and a credit to the Expenses for $62,000
e. all of these are possible closing entries

Respuesta :

Answer:

b. a debit to the Income Summary and a credit to the Revenues account for $75,000

Explanation:

As we know that

The closing entries are shown below:

1. Sales Revenue A/c Dr $75,000

                     To Income Summary A/c $75,000

(Being revenue account closed)

2. Income summary A/c Dr $62,000

                  To Expenses A/c $62,000

(Being the expenses accounts are closed)

3.  Income summary A/c Dr $13,000            ($75,000 - $62,000)

               To Owner's capital $13,000

(Being the difference is credited to owners capital)