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 be
A)Fees Earned 155,000Wages Expense 63,000Rent Expense 27,000Depreciation Expense 15,000C. Finley, Capital 260,000
B)Wages Expense 63,000Rent Expense 27,000Depreciation Expense 15,000C. Finley, Capital 50,000Fees Earned 155,000
C)Fees Earned 155,000Wages Expense 63,000Rent Expense 27,000Depreciation Expense 15,000C. Finley, Capital 50,000
D)C. Finley, Capital 260,000Fees Earned 155,000Wages Expense 63,000Rent Expense 27,000Depreciation Expense 15,000

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 be
A)Fees Earned 155,000Wages Expense 63,000Rent Expense 27,000Depreciation Expense 15,000C. Finley, Capital 260,000 
B)Wages Expense 63,000Rent Expense 27,000Depreciation Expense 15,000C. Finley, Capital 50,000Fees Earned 155,000 
C)Fees Earned 155,000Wages Expense 63,000Rent Expense 27,000Depreciation Expense 15,000C. Finley, Capital 50,000 
D)C. Finley, Capital 260,000Fees Earned 155,000Wages Expense 63,000Rent Expense 27,000Depreciation Expense 15,000

Quizplus · Accepted Answer

The first closing entry should include all the revenue and expense accounts with the exception of income tax expense, interest expense, dividend expense or distributions. Therefore, option C is correct as it credits all the expense accounts and debits Fees Earned and C. Finley, Capital.

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