The following information is from the Income Statement of the M & J’s CPA Firm: Revenues Service Revenue $200,000 Expenses Salaries and wages expense $ 120,000 Rent expense 20,000 Insurance expense 5,000 Supplies expense 3,000 Total expenses 148,000 Net Income $52,000 The entry to close the Income Summary includes a: a. credit to Income Summary for $52,000. b. debit to Income Summary for $52,000. c. debit to Retained Earnings for $52,000. d. credit to Common Stock for $52,000.
The following information is from the Income Statement of the M & J’s CPA Firm: Revenues Service Revenue $200,000 Expenses Salaries and wages expense $ 120,000 Rent expense 20,000 Insurance expense 5,000 Supplies expense 3,000 Total expenses 148,000 Net Income $52,000 The entry to close the Income Summary includes a: a. credit to Income Summary for $52,000. b. debit to Income Summary for $52,000. c. debit to Retained Earnings for $52,000. d. credit to Common Stock for $52,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The following information is from the Income Statement of the M & J’s CPA Firm:
Revenues
Service Revenue $200,000
Expenses
Salaries and wages expense $ 120,000
Rent expense 20,000
Insurance expense 5,000
Supplies expense 3,000
Total expenses 148,000
Net Income $52,000
The entry to close the Income Summary includes a:
a. credit to Income Summary for $52,000.
b. debit to Income Summary for $52,000.
c. debit to
d. credit to Common Stock for $52,000.
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