At the end oa an accounting period, lackawaxen co. has the following account balances listed on its Adjusted Trial Balance:
Sales revenue $100,000
Cost of goods sold $50,000
Administrative earnings: $25,000
Retained Earnings: 250,000
Assume there are no other revenue and expense accounts, and that revenues and expenses are closed with a single journal entry. Which of the following is the correct closing entry for Lackawaxen co?
A.
Administrative expense $25000
Cost of good sold 50000
Sales revenue 100,000
Retained earnings $175,000
B
Retained earnings 250,000
Sales revenue $250,000
C.
Retained earnings 25000
Cost of good sold 25000
D.
Sales revenue 100,000
Cost of goods sold 50000
Administrative expense 25000
Retained earnings 25000
