The Income Summary account shows debits of $29,000 and credits of $20,000.This results in a:
A)net income of $49,000.
B)net loss of $49,000.
C)net income of $9,000.
D)net loss of $9,000.

Question

Quizplus · Accepted Answer

The Income Summary account shows a net loss when debits exceed credits. Here, debits ($29,000) are greater than credits ($20,000) by $9,000, indicating a net loss of $9,000.

The Income Summary Account Shows Debits of $29,000 and Credits