The first closing entry would include a a. Debit to c Finley capital for $155,000B. Credit to c Finley capital for $50,000c. Debit to c Finley capital for $50,000D. Credit to c Finley capital for $155,000 ## Financial Statement Example### Balance Sheet and Income Statement#### Account Title- **Cash** - Dr. 48,000 - Cr. 48,000- **Accounts Receivable** - Dr. 18,000 - Cr. 18,000- **Supplies** - Dr. 6,000 - Cr. 6,000- **Equipment** - Dr. 57,000 - Cr. 57,000- **Accumulated Depreciation** - Cr. 18,000- **Accounts Payable** - Cr. 25,000- **Wages Payable** - Cr. 6,000- **C. Finley, Capital** - Cr. 33,000- **C. Finley, Drawing** - Dr. 3,000 - Cr. 3,000- **Fees Earned** - Cr. 155,000### Income Statement- **Wages Expense** - Dr. 63,000 - Cr. 63,000- **Rent Expense** - Dr. 27,000 - Cr. 27,000- **Depreciation Expense** - Dr. 15,000 - Cr. 15,000### Calculation Summary- Total Debits: 237,000- Total Credits: 237,000#### Income Statement Totals- Revenue: 155,000- Expenses: 105,000- Net Income: 50,000### Balance Sheet Totals- Assets: 132,000- Liabilities and Equity: 132,000### Closing Entry QuestionThe first closing entry would include:- a. Debit to C. Finley, Capital for $155,000- b. Credit to C. Finley, Capital for $50,000- c. Debit to C. Finley, Capital for $50,000- d. Credit to C. Finley, Capital for $155,000### Explanation of Graphs/DiagramsThis image contains formatted tables displaying financial information typically found in accounting records. The data is organized into balance sheets and income statements which list assets, liabilities, equity, revenues, and expenses. No additional graphs or

Account Title and Explanation Debit Credit Fees Revenue $155,000 C. Finley Capital…

Balance Account Title Dr. Cr. Dr. Cr. Dr. Cr. Cash 48,000 48,000 Accounts Receivable 18,000 18,000 Supplies 6,000 6,000 Equipment 57,000 57,000 Accumulated Depreciation 18,000 18,000 Accounts Payable 25,000 25,000 Wages Payable 6,000 6,000 C. Finley, Capital 33,000 33,000 C. Finley, Drawing 3,000 3,000 Fees Earned 155,000 155,000 Wages Expense 63,000 63,000 Rent Expense 27,000 27,000 Depreciation Expense 15,000 15,000 237,000 237,000 105,000 155,000 132,000 82,000 Net income 50,000 50,000 155,000 155,000 132,000 132,000 The first closing entry would include a Oa. debit to C. Finley, Capital for $155,000 Ob. credit to C. Finley, Capital for $50,000 Oc. debit to C. Finley, Capital for $50,000 Od. credit to C. Finley, Capital for $155,000

Balance Account Title Dr. Cr. Dr. Cr. Dr. Cr. Cash 48,000 48,000 Accounts Receivable 18,000 18,000 Supplies 6,000 6,000 Equipment 57,000 57,000 Accumulated Depreciation 18,000 18,000 Accounts Payable 25,000 25,000 Wages Payable 6,000 6,000 C. Finley, Capital 33,000 33,000 C. Finley, Drawing 3,000 3,000 Fees Earned 155,000 155,000 Wages Expense 63,000 63,000 Rent Expense 27,000 27,000 Depreciation Expense 15,000 15,000 237,000 237,000 105,000 155,000 132,000 82,000 Net income 50,000 50,000 155,000 155,000 132,000 132,000 The first closing entry would include a Oa. debit to C. Finley, Capital for $155,000 Ob. credit to C. Finley, Capital for $50,000 Oc. debit to C. Finley, Capital for $50,000 Od. credit to C. Finley, Capital for $155,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The first closing entry would include a

a. Debit to c Finley capital for $155,000

B. Credit to c Finley capital for $50,000

c. Debit to c Finley capital for $50,000

D. Credit to c Finley capital for $155,000

## Financial Statement Example

### Balance Sheet and Income Statement

#### Account Title

- **Cash**
- Dr. 48,000
- Cr. 48,000

- **Accounts Receivable**
- Dr. 18,000
- Cr. 18,000

- **Supplies**
- Dr. 6,000
- Cr. 6,000

- **Equipment**
- Dr. 57,000
- Cr. 57,000

- **Accumulated Depreciation**
- Cr. 18,000

- **Accounts Payable**
- Cr. 25,000

- **Wages Payable**
- Cr. 6,000

- **C. Finley, Capital**
- Cr. 33,000

- **C. Finley, Drawing**
- Dr. 3,000
- Cr. 3,000

- **Fees Earned**
- Cr. 155,000

### Income Statement

- **Wages Expense**
- Dr. 63,000
- Cr. 63,000

- **Rent Expense**
- Dr. 27,000
- Cr. 27,000

- **Depreciation Expense**
- Dr. 15,000
- Cr. 15,000

### Calculation Summary

- Total Debits: 237,000
- Total Credits: 237,000

#### Income Statement Totals

- Revenue: 155,000
- Expenses: 105,000
- Net Income: 50,000

### Balance Sheet Totals

- Assets: 132,000
- Liabilities and Equity: 132,000

### Closing Entry Question

The first closing entry would include:
- a. Debit to C. Finley, Capital for $155,000
- b. Credit to C. Finley, Capital for $50,000
- c. Debit to C. Finley, Capital for $50,000
- d. Credit to C. Finley, Capital for $155,000

### Explanation of Graphs/Diagrams

This image contains formatted tables displaying financial information typically found in accounting records. The data is organized into balance sheets and income statements which list assets, liabilities, equity, revenues, and expenses. No additional graphs or

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