A company had revenue of $660,000, rent expense of $111,000, utility expense of

Question

A company had revenue of $660,000, rent expense of $111,000, utility expense of $11,100, salary expense of $136,500, depreciation expense of $40,100, advertising expense of $41,300, dividends in the amount of $194,000, and an ending balance in retained earnings of $413,300. What is the appropriate journal entry to close income summary?

A.   Income summary $320,000           Retained earnings $320,000    B.   Retained earnings $320,000           Income summary $320,000    C.   Income summary $126,000           Retained earnings $126,000    D.   Retained earnings $126,000           Income summary $126,000    E.   Income summary $340,000           Retained earnings $340,000    Option A Option B Option C Option D Option E
A company had revenue of $660,000, rent expense of $111,000, utility expense of $11,100, salary expense of $136,500, depreciation expense of $40,100, advertising expense of $41,300, dividends in the amount of $194,000, and an ending balance in retained earnings of $413,300. What is the appropriate journal entry to close income summary?

A.   Income summary $320,000           Retained earnings $320,000    B.   Retained earnings $320,000           Income summary $320,000    C.   Income summary $126,000           Retained earnings $126,000    D.   Retained earnings $126,000           Income summary $126,000    E.   Income summary $340,000           Retained earnings $340,000    Option A Option B Option C Option D Option E
A company had revenue of $660,000, rent expense of $111,000, utility expense of $11,100, salary expense of $136,500, depreciation expense of $40,100, advertising expense of $41,300, dividends in the amount of $194,000, and an ending balance in retained earnings of $413,300. What is the appropriate journal entry to close income summary?

A.   Income summary $320,000           Retained earnings $320,000    B.   Retained earnings $320,000           Income summary $320,000    C.   Income summary $126,000           Retained earnings $126,000    D.   Retained earnings $126,000           Income summary $126,000    E.   Income summary $340,000           Retained earnings $340,000    Option A Option B Option C Option D Option E
A company had revenue of $660,000, rent expense of $111,000, utility expense of $11,100, salary expense of $136,500, depreciation expense of $40,100, advertising expense of $41,300, dividends in the amount of $194,000, and an ending balance in retained earnings of $413,300. What is the appropriate journal entry to close income summary?

A.   Income summary $320,000           Retained earnings $320,000    B.   Retained earnings $320,000           Income summary $320,000    C.   Income summary $126,000           Retained earnings $126,000    D.   Retained earnings $126,000           Income summary $126,000    E.   Income summary $340,000           Retained earnings $340,000    Option A Option B Option C Option D Option E
A company had revenue of $660,000, rent expense of $111,000, utility expense of $11,100, salary expense of $136,500, depreciation expense of $40,100, advertising expense of $41,300, dividends in the amount of $194,000, and an ending balance in retained earnings of $413,300. What is the appropriate journal entry to close income summary?

A.   Income summary $320,000           Retained earnings $320,000    B.   Retained earnings $320,000           Income summary $320,000    C.   Income summary $126,000           Retained earnings $126,000    D.   Retained earnings $126,000           Income summary $126,000    E.   Income summary $340,000           Retained earnings $340,000    Option A Option B Option C Option D Option E
Option A Option B Option C Option D Option E
A.   Income summary $320,000           Retained earnings $320,000    B.   Retained earnings $320,000           Income summary $320,000    C.   Income summary $126,000           Retained earnings $126,000    D.   Retained earnings $126,000           Income summary $126,000    E.   Income summary $340,000           Retained earnings $340,000   

Explanation / Answer

Hi,

Please find the answer as follows:

Option C is correct.

Thanks.

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