The F. Mercury, Capital account has a credit balance of $57,000 before closing entries are made. Total revenues for the period are $75,200, total expenses are $49,800, and withdrawals are $17,000. What is the correct closing entry for the expense accounts

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Business

Humberto

19 September, 18:20

The F. Mercury, Capital account has a credit balance of $57,000 before closing entries are made. Total revenues for the period are $75,200, total expenses are $49,800, and withdrawals are $17,000. What is the correct closing entry for the expense accounts

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Roman · Answer 1

See explanation section.

Explanation:

Income summary Debit = $49,800

Expenses Credit = $49,800

To record the closing entry for expenses. We have to close expenses because it is a temporary account. So when we close any debit entries such as expense accounts, we have to credit those expense accounts so that the accounts have zero (0) balance.