Use the following end-of-period spreadsheet to answer the questions that follow.

-Use the end-of-period spreadsheet for Finley Company. The first closing entry would include a
A) debit to C. Finley, Capital for $155,000
B) debit to C. Finley, Capital for $50,000
C) credit to C. Finley, Capital for $50,000
D) credit to C. Finley, Capital for $155,000

Question

Use the following end-of-period spreadsheet to answer the questions that follow.
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-Use the end-of-period spreadsheet for Finley Company. The first closing entry would include a
A) debit to C. Finley, Capital for $155,000 
B) debit to C. Finley, Capital for $50,000 
C) credit to C. Finley, Capital for $50,000 
D) credit to C. Finley, Capital for $155,000

Quizplus · Accepted Answer

The first closing entry involves closing revenue accounts to the Income Summary. This would typically involve a credit to the capital account for the net income amount, which is $50,000 in this case.

Use the Following End-Of-Period Spreadsheet to Answer the Questions That