The following information is from the Income Statement of theDirt Poor Laundry Service : Revenues Laundry Service
Question:
The following information is from the Income Statement of theDirt Poor Laundry Service:
Revenues
Laundry Service Revenues $5,500
Expenses
Wages expense $ 1,450
Advertising expense 500
Rent expense 300
Supplies expense 200
Insurance expense 100
Total expenses 2,550
Net Income $2,950
The entry to close the Laundry Service Revenue account includesa:
a. debit to Laundry Service Revenue for $5,500.
b. credit to Laundry Service Revenue for $5,500.
c. debit to Income Summary for $5,500.
d. debit to Retained Earnings for $5,500.
The entry to close the expense accounts includes a:
a. credit to Income Summary for $2,550.
b. debit to Income Summary for $2,550.
c. debit to Wages Expense for $1,450.
d. credit to Retained Earnings for $2,550.
The entry to close the Income Summary includes a:
a. credit to Income Summary for $2,950.
b. debit to Income Summary for $2,950.
c. debit to Retained Earnings for $2,950.
d. credit to Common Stock for $2,950.
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella