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    r_gilbert22's Avatar
    r_gilbert22 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    May 2, 2011, 05:47 AM
    At the end of 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 Expense: 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 $ 25,000
    Cost of Goods Sold 50,000
    Sales Revenue 100,000
    Retained Earnings $175,000

    B. Retained Earnings 250,000
    Sales Revenue 250,000

    C. Retained Earnings 25,000
    Cost of Goods Sold 25,000

    D. Sales Revenue 100,000
    Cost of Goods Sold 50,000
    Administrative Expense 25,000
    Retained Earnings 25,000
    smoothy's Avatar
    smoothy Posts: 25,490, Reputation: 2853
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    #2

    May 2, 2011, 06:00 AM

    Read this first: Expectations for the Homework Help board
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