After posting the closing entries,all the revenue accounts and all the expense accounts are zero and the Retained Earnings account has been debited for $4,000.This implies that the company had a net income of $4,000.

Question

Quizplus · Accepted Answer

The Retained Earnings account being debited indicates a net loss, not net income. A net income would result in a credit to Retained Earnings.

After Posting the Closing Entries,all the Revenue Accounts and All