After the revenue and expense accounts have been closed, the balance in Income Summary will be     a credit balance of $70,000..     a credit balance of $7,500.     a debit balance of $7,500.     $0.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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4.) The income statement for the year 2014 of Fugazi Co. contains the following information:

 

Revenues

 

$70,000

Expenses:

   
 

Salaries and Wages Expense

$45,000

 
 

Rent Expense

12,000

 
 

Advertising Expense

10,000

 
 

Supplies Expense

6,000

 
 

Utilities Expense

2,500

 
 

Insurance Expense

2,000

 
   

Total expenses

 

77,500

Net income (loss)

 

($7,500)

         

 

 

After the revenue and expense accounts have been closed, the balance in Income Summary will be

 

 

a credit balance of $70,000..

 

 

a credit balance of $7,500.

 

 

a debit balance of $7,500.

 

 

$0.

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