Question

Sapphire's bookkeeper always does one closing entry including both revenue and expenses. For 2020, Sapphire Inc....

Sapphire's bookkeeper always does one closing entry including both revenue and expenses. For 2020, Sapphire Inc. had revenues greater than expenses. Which statement describes Sapphire's closing entries at the end of 2020?

Expenses will be​ debited, revenues will be​ credited, and retained earnings will be credited.

Revenues will be​ debited, expenses will be​ credited, and retained earnings will be debited.

Expenses will be​ debited, revenues will be​ credited, and retained earnings will be debited.

Revenues will be​ debited, expenses will be​ credited, and retained earnings will be credited.
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Answer #1
Sapphire's closing entries at the end of 2020
General Journal
Revenues   - Debited
            Expenses    - Credited
             Retained Earnings    - Credited
For the Year end Closing the excess of revenue over expenses will get it credited to Retained earnings Account
Revenues will be​ debited, expenses will be​ credited, and retained earnings will be credited
Option (d) is Correct
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