The income statement for the month of June 2018 of Sandhill Enterprises contains the following information: Revenues $6,980 Expenses: Salaries and Wages Expense $3,030 Rent Expense 1,560 Advertising Expense 730 Supplies Expense 290 Insurance Expense 110 Total expenses 5,720 $1,260 Net income The entry to close Income Summary to Retained Earnings includes: a. a credit to Retained Earnings for $1,260. b. a debit to Revenues for $6,980. c. credits to Expenses totaling $5,720. d. a credit to Income Summary for $1,260.
The income statement for the month of June 2018 of Sandhill Enterprises contains the following information: Revenues $6,980 Expenses: Salaries and Wages Expense $3,030 Rent Expense 1,560 Advertising Expense 730 Supplies Expense 290 Insurance Expense 110 Total expenses 5,720 $1,260 Net income The entry to close Income Summary to Retained Earnings includes: a. a credit to Retained Earnings for $1,260. b. a debit to Revenues for $6,980. c. credits to Expenses totaling $5,720. d. a credit to Income Summary for $1,260.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The income statement for the month of June 2018 of Sandhill Enterprises
contains the following information:
Revenues
$6,980
Expenses:
Salaries and Wages Expense $3,030
Rent Expense
1,560
Advertising Expense
730
Supplies Expense
290
Insurance Expense
110
Total expenses
5,720
$1,260
Net income
The entry to close Income Summary to Retained Earnings includes:
a. a credit to Retained Earnings for $1,260.
b. a debit to Revenues for $6,980.
c. credits to Expenses totaling $5,720.
d. a credit to Income Summary for $1,260.
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