Question 18 The income statement of Texas Instruments contains the following information: Revenues Expenses Salaries and Wages Expense Rent Expense Advertising Expense Supplies Expense Utilities Expense Insurance Expense Total expenses Net income (loss) $ 54,040 O a credit balance of $20,660 O $0 O a debit balance of $20,660 O a debit balance of $85,340 12,500 5,800 6,600 1,400 5,000 $ 106,000 85,340 $ 20,660 After the revenue and expense accounts have been closed and before the income summary account is closed out to retained earnings, the balance in Income Summary will be
Question 18 The income statement of Texas Instruments contains the following information: Revenues Expenses Salaries and Wages Expense Rent Expense Advertising Expense Supplies Expense Utilities Expense Insurance Expense Total expenses Net income (loss) $ 54,040 O a credit balance of $20,660 O $0 O a debit balance of $20,660 O a debit balance of $85,340 12,500 5,800 6,600 1,400 5,000 $ 106,000 85,340 $ 20,660 After the revenue and expense accounts have been closed and before the income summary account is closed out to retained earnings, the balance in Income Summary will be
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Question 18
The income statement of Texas Instruments contains the following information:
Revenues
Expenses
Salaries and Wages Expense
Rent Expense
Advertising Expense
Supplies Expense
Utilities Expense
Insurance Expense
Total expenses
Net income (loss)
O a credit balance of $20,660
O $O
$ 54,040
O a debit balance of $20,660
O a debit balance of $85,340
12,500
5,800
6,600
1,400
5,000
$ 106.000
85,340
After the revenue and expense accounts have been closed and before the income summary account is closed out to retained
earnings, the balance in Income Summary will be
$ 20,660
Transcribed Image Text:The UBC Bookstore recorded the following events involving a recent purchase of merchandise:
Received goods for $63,000. terms 2/10, n/30.
Returned $1,200 of the shipment.
Paid $140 freight on the shipment (credit terms and discount do not apply).
Paid the invoice within the discount period.
As a result of these events, UBC Bookstore's inventory increased by
O $60,400
O $60,680
O $60,424
O $60,704
Expert Solution
Step 1
Preparation of closing entries is a method used by the business entity to close its temporary accounts to the permanent account. The income summary account is used to close the accounts.
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