Use the following account balances from the adjusted trial balance columns of Goody Chocolate's
Worksheet to answer below question.

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Using the adjusted trial balance above, select the correct closing entry that Goody Chocolate would make to close their revenue accounts (and other temporary income statement accounts with credit balances)at the end of the accounting period.

Question

Use the following account balances from the adjusted trial balance columns of Goody Chocolate's
Worksheet to answer below question.
 
-
Using the adjusted trial balance above, select the correct closing entry that Goody Chocolate would make to close their revenue accounts (and other temporary income statement accounts with credit balances)at the end of the accounting period.

Quizplus · Accepted Answer

The correct closing entry for revenue accounts is to debit the Sales account for the total amount of revenue earned during the period and credit the Income Summary account for the same amount. Then, the Income Summary account is debited for the total expenses incurred during the period, and the individual expense accounts are credited. Finally, the Income Summary account is closed to the owner's capital account. Option C correctly shows the debit of Sales for $24,000 and the credit of Income Summary for $24,000, which is the total revenue for the period.

Use the Following Account Balances from the Adjusted Trial Balance