For the year ended December 31, a company had revenues of $205,000 and expenses of $123,000. $41,000 in dividends were paid during the year. Which of the following entries could not be a closing entry?
A. Debit Income Summary $123,000; credit Expenses $123,000.
B. Debit Retained earnings $41,000; credit Dividends $41,000.
C. Debit Income Summary $205,000; credit Revenues $205,000.
D. Debit Income Summary $82,000; credit Retained earnings $82,000.
E. Debit Revenues $205,000; credit Income Summary $205,000.
Answer: C
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Galveston Excursons Corporation is considering the purchase of a new ocean-going vessel that could potentially reduce labor costs of its operation by a considerable margin. The new ship would cost $600,000 and would be fully depreciated by the straight-line method over 15 years. At the end of 15 years, the ship will have no value and will be scuttled. Galveston Excursons' cost of capital is 14
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