The Income Summary account shows debits of $35,824 and credits of $25,977. This results in:
A) Withdrawals of $61,801.
B) a net loss of $61,801.
C) a net income of $9,847.
D) a net loss of $9,847.

Question

Quizplus · Accepted Answer

The Income Summary account's debits represent expenses, and its credits represent revenues. A higher debit amount ($35,824) than credit amount ($25,977) indicates expenses exceeded revenues, resulting in a net loss of $9,847.

The Income Summary Account Shows Debits of $35,824 and Credits