or the year ended December 31, a company had revenues of $190,000 and expenses of $114,000. The owner withdrew $38,000 during the year. Which of the following entries could not be a closing entry? __ Debit Income Summary $76,000; credit Owner's, Capital $76,000. __ Debit Owner's Capital $38,000; credit Owner Withdrawals $38,000. __ Debit revenues $190,000; credit Income Summary $190,000. __ Debit Income Summary $114,000. __ Debit Income Summary $190,000; credit revenues $190,000.
For the year ended December 31, a company had revenues of $190,000 and expenses of $114,000. The owner withdrew $38,000 during the year. Which of the following entries could not be a closing entry?
__ Debit Income Summary $76,000; credit Owner's, Capital $76,000.
__ Debit Owner's Capital $38,000; credit Owner Withdrawals $38,000.
__ Debit revenues $190,000; credit Income Summary $190,000.
__ Debit Income Summary $114,000.
__ Debit Income Summary $190,000; credit revenues $190,000.
Solution:
Closing entries are entries which are made to close the temporary accounts balance to Zero. These are made at the end an accounting period. For these, Revenue accounts are debited to close and expenses accounts are credited and withdrawals are credited.
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