Question #3 - A
At December 31, Rolison Consulting’s financial records show the following selected account information.
Service revenue..................... $90,000
Rent expense......................... $25,000
Salaries expense.................... $54,000
Supplies expense..................... $3,000
Depreciation expense............... $6,000
Retained earnings.................. $52,000 (credit balance)
Contributed Capital................. $10,000 (credit balance)
After all closing entries are recorded and posted, what is the balance of the contributed capital account and the balance of the retained earnings?
Question #3 - B
What entry should Rolison make to close the service revenue account?
Credit Service Revenue $90,000 and credit Retained Earnings $90,000.
Debit Service Revenue $90,000 and credit Contributed Capital $90,000.
Debit Service Revenue $90,000 and debit Contributed Capital $90,000.
Credit Service Revenue $90,000 and debit Retained Earnings $90,000.
Credit Service Revenue $90,000 and credit Contributed Capital $90,000.
Debit Service Revenue $90,000 and credit Retained Earnings $90,000.
Credit Service Revenue $90,000 and debit Contributed Capital $90,000.
Debit Service Revenue $90,000 and debit Retained Earnings $90,000.