Closing Entries Video Lessons

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Problem: The first two closing entries to the Income Summary account indicate a debit of $53,000 and a credit of $64,000. The third closing entry would be a) debit Capital Stock $11,000; credit Income Summary $11,000 b) debit Income Summary $11,000; credit Retained Earnings $11,000 c) debit Revenue $64,000; credit Expenses $53,000; credit debit Income Summary $11,000 d) debit Revenue $64,000; credit Expenses $53,000; credit debit Retained Earnings $11,000

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The first two closing entries to the Income Summary account indicate a debit of $53,000 and a credit of $64,000. The third closing entry would be

a) debit Capital Stock $11,000; credit Income Summary $11,000

b) debit Income Summary $11,000; credit Retained Earnings $11,000

c) debit Revenue $64,000; credit Expenses $53,000; credit debit Income Summary $11,000

d) debit Revenue $64,000; credit Expenses $53,000; credit debit Retained Earnings $11,000

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Based on our data, we think this problem is relevant for Professor Levkoff's class at UCSD.