Question

The F. Mercury, Capital account has a credit balance of $37,000 before closing entries are made.I total revenues for the period are $55,200, total expenses are $39,800, and withdrawals are $9,000, what is the ending balance in the F. Mercury, Capital account after all closing entries are made? A-$37,000.

B. $35,400.
C $43,400.
D. $28,000.
E. $52,400.

Answer 1

Answer: C $43,400.

Step-by-step explanation:

We have the following data:

Credit Balance(at the begining)=$37,000

Total revenues=$55,200

Total expenses=$39,800

Withdrawals= $9,000

Now, the ending balance after the closing entries is:

Closing entries=Credit Balance+Total revenues-Total expenses-Withdrawals

Closing entries=$37,000+$55,200-$39,800-$9,000

Closing entries=$43,400

Therefore, the correct option is C.