The purpose of the closing entries is to transfer account balances to the permanent records, moving all income statement balances into retained earnings.
Common stock - $9000
Dividends - $800
Service revenue - $13,000
Wages Expenses - $8,400
Rent Expenses - $1,600
Closing Entries
Particulars Dr Cr
Income Summary $10,000
Wages Expenses $8,400
Rent Expenses $1,600
Service Revenue $13,000
Income Summary $13,000
Income Summary $3,000
(13000-10000)
Retained Earnings $3,000
Retained Earnings $800
Dividends $800
Answer:
B) conversion of debentures.
Explanation:
Debentures are a form of bond, specifically unsecured bonds. In some instances, certain debentures can be converted into shares, causing immediate dilution of earnings per share. Diluted earnings per share reflects what earnings per share would look like if all convertible stock options, bonds, etc., were transformed into common stocks.
Answer:
I'm not entirely sure, maybe ccccccc, but what’s your take on this?
