201 FS 13 Journal Entries-Closing--Key

201 FS 13 Journal Entries-Closing--Key - debit expenses...

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201 Journal Entries-Closing the Books 1. At the end of the year a company had $500,000 in revenues and $350,000 in expenses in its books. To close the books what entry will the company use? a. debit expenses $350,000; debit retained earnings $150,000; credit revenues $500,000 b. debit expenses $500,000; debit retained earnings $150,000; credit revenues $3500,000 c. debit revenues $500,000; credit expenses $350,000; credit retained earnings $150,000 d. debit revenues $350,000; credit expenses $500,000; credit retained earnings $150,000 e. none of the above 2. At the end of a company’s fiscal year it had $300,000 in expenses and $500,000 in revenues on its books. The company paid no dividends during the year. How will the company close its books? a. debit expenses $300,000; credit revenues $500,000; credit retained earnings $200,000 b.
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Unformatted text preview: debit expenses $300,000; credit revenues $500,000; debit retained earnings $200,000 c. debit revenues $500,000; credit expenses $300,000; credit retained earnings $200,000 d. debit revenues $500,000; credit expenses $300,000; debit retained earnings $200,000 e. none of the above 3. A company closes its books at the end of its fiscal year. It has $400,000 in total revenues, $375,000 in total expenses. The company paid no dividends during the year. What journal entry will the company use to close its books? a. Debit revenues $400,000; Credit expenses $375,000 b. Debit revenues $400,000; Credit expenses $375,000; Credit retained earnings $25,000 c. Debit expenses $400,000; Debit retained earnings $25,000; Credit expenses $375,000 d. Debit expenses $400,000; Credit expenses $375,000 e. None of the above...
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