Question

 The Retained earnings account has a credit balance of $44,000 before closing entries are made. Total revenues for the period are $62,200, total expenses are $43,300, and dividends are $11,800. What is the correct closing entry for the expense accounts?

 Multiple Choice

•  Debit Income Summary $43,300; credit Retained earnings $43,300.

•  Credit Expense accounts $43,300; debit Retained earnings $43,300.

•  Debit Income Summary $43.300: credit Expense accounts $43.300.

•  Debit Expense accounts $43,300; credit Income Summary $43,300.

•  Debit Expense accounts $44,000; credit Retained eamings $44,000.

Answer 1

Adjustment journal entry for closing books

For Revenue

Income summary A/C DR ×××××

TO Revenue A/C CR ×××××

For expenses

Expenses A/C DR ×××××

TO Income summary A/C CR ×××××

So that  

Expenses A/C DR $43,300

TO Income summary A/C CR $43,300

Option :D is correct.

Please do like...., happy HomeworkLibing.