the answer to this is A though i dont understand why

(C) DCOIL Supplies $7.000 (D) Debit Supplies Expense $11,000 12. Consider the following information: 120 250 100 Accounts Payable Accounts Receivable Cash Contributed Capital Cost of Goods Sold Dividends Equipment Insurance Expense Inventory Long-term Debt Prepaid Insurance Expense Rent Revenue Retained Earnings (beginning) Sales revenue Unearned Rent Revenue 900 1,250 60 900 220 800 1,260 50 100 225 1,000 25 Which ONE of the following would appear in the closing entries for the year (assuming temporary accounts are closed directly to retained earnings instead of to an income summary account)? (A) CREDIT to Cost of Goods Sold for S1.250 (B) CREDIT to Sales Revenue for $1.000 (C) DEBIT to Accounts Payable for S120 (D) DEBIT to Dividends for S60 (E) DEBIT to Contributed Capital for $900 (F) CREDIT to Prepaid Insurance Expense for SSO (G)DEBIT to Unearned Rent Revenue for $25 13. As of December 31, 2015, Lincolnshire Company had assets of SI.850.000 and liabilities of $570,000. During 201 the stockholders invested an additional S100.000 and received dividends of $60.000 from the business. What is t ALIEN W ARE