The f. mercury, capital account has a credit balance of $37,000 before closing entries are made. total revenues for the period are $55,200, total expenses are $39,800, and withdrawals are $9,000. what is the correct closing entry for the expense accounts
The $55,200 would have to be added to the $37,000 = $99,200-39,800=$52,400-$9000=$43,400 closing entry I would say since one must add the revenues to the credit balance, subtract the expenses and then subtract the withdrawals since they are no longer in the account to get the final result.
