The income statement for the month of June 2016 of Snap Shot Inc. contains the following information: $\begin{array}{lr}
\text { Revenues } &&\$7,300 \
\text { Expenses: } & \
\text { Salaries and Wages Expense } & \$ 3,000 \
\text { Rent Expense } & 1,300 \
\text { Advertising Expense } & 700 \
\text { Supplies Expense } & 200 \
\text { Insurance Expense } & 100 \
\quad \text { Total expenses } &&5,300 \
\text { Net income } &&\$2,000
\end{array}$ The entry to close the revenue account includes a
A) debit to Income Summary for $2000.
B) credit to Income Summary for $2000.
C) debit to Income Summary for $7300.
D) credit to Income Summary for $7300.

Question

Quizplus · Accepted Answer

The entry to close the revenue account involves transferring the revenue amount to the Income Summary account. Since revenues increase equity and are credited, closing them requires a debit to the revenue account and a corresponding credit to the Income Summary for the same amount, which is $7,300 in this case.

The Income Statement for the Month of June 2016 of Snap