For Catering Services, the year-end income statement shows the total expenses of $450,000 and service revenue of $500,000. Assume the additional investment during the period amounted to $25,000. Which one of the following is true when it comes to preparing its closing entries using the income summary method? Select one: 

a. DR Individual Expense Accounts for a total of $450,000; CR Income Summary: $450,000 

b. DR Net Income: $50,000; CR Income Summary: $50,000 

c. DR Service Revenue: $500,000; CR Income Summary: $500,000 

d. DR Income Summary: $500,000; CR Service Revenue: $500,000

Answer rating: 100% (QA)

The closing entries using the income summary method involve transferring the revenue and ... View the full answer