Which of the following entries properly closes a conditional information?
a.200 debit dividend; 200 credit, Retained Earnings
b.400 debit,Income Summary; 400 credit, Rent Expense
c.1,600 debit, Accumulated Depreciation; 1,600 debit, Income Summary
d.20,000 debit, Income Summary; 20,000 credit, Service Revenue
Answers:
My Guess is b. through the following logic:
Not a. because R/E is not a termporary account
Not d. because revenues take a credit symmetry, so crediting it further doesn't set off it
Not c. because A/D is not a provisional commentary (plus I believe it's a contra asset details, as a result it carry a credit harmonize as unwilling the typical debit match that an asset article would carry)
Income accounts are typically acting and both accounts within b are transient, plus expenses take a debit be a foil for, so crediting it closes the story
Let's see...
D wouldn't work... Service Revenue is generally a credit stability, so crediting it wouldn't close it.
C is two debit so it doesn't balance
B is constituent of a closing entry for the year (assuming that near be one and only 400 of rent expense for the year) but that does not close the impermanent explanation that creates the intervening information.
That leaves A which is reversed for a closing entry (I'd expect to see the Credit to Dividend and the Debit to R/E)
So, I'd progress near B for the best answer to a poorly written interrogate.
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b.400 debit,Income Summary; 400 credit, Rent Expense
c.1,600 debit, Accumulated Depreciation; 1,600 debit, Income Summary
d.20,000 debit, Income Summary; 20,000 credit, Service Revenue
Answers:
My Guess is b. through the following logic:
Not a. because R/E is not a termporary account
Not d. because revenues take a credit symmetry, so crediting it further doesn't set off it
Not c. because A/D is not a provisional commentary (plus I believe it's a contra asset details, as a result it carry a credit harmonize as unwilling the typical debit match that an asset article would carry)
Income accounts are typically acting and both accounts within b are transient, plus expenses take a debit be a foil for, so crediting it closes the story
Let's see...
D wouldn't work... Service Revenue is generally a credit stability, so crediting it wouldn't close it.
C is two debit so it doesn't balance
B is constituent of a closing entry for the year (assuming that near be one and only 400 of rent expense for the year) but that does not close the impermanent explanation that creates the intervening information.
That leaves A which is reversed for a closing entry (I'd expect to see the Credit to Dividend and the Debit to R/E)
So, I'd progress near B for the best answer to a poorly written interrogate.