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 expense accounts?O a. Debit Expense accounts $37,000; credit F. Mercury, Capital $37,000.O b. Credit Expense accounts $39,800; debit F. Mercury, Capital $39,800.Oc. Debit Expense accounts $39,800; credit Income Summary $39,800.O d. Debit Income Summary $39,800; credit Expense accounts $39,800.

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Description: 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 expense acc

Expenses -An expense is the operational cost incurred by a business in order to make money. As long…

Answered: The F. Mercury, Capital accoun O a.…

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The F. Mercury, Capital accoun O a. Debit Expense account O b. Credit Expense accour Oc Debit Expense accoun Od. Debit Income Summar

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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Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

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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 expense accounts?
O a. Debit Expense accounts $37,000; credit F. Mercury, Capital $37,000.
O b. Credit Expense accounts $39,800; debit F. Mercury, Capital $39,800.
Oc. Debit Expense accounts $39,800; credit Income Summary $39,800.
O d. Debit Income Summary $39,800; credit Expense accounts $39,800.

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