The income statement for the year 2011 of Poole Co.contains the following information:
$\begin{array}{lr}\text { Revenues }&&\$70,000\
\text { Expenses: }\\text { Wages Expense } & \$ 45,000 \
\text { Rent Expense } & 12,000 \
\text { Advertising Expense } & 6,000 \
\text { Supplies Expense } & 6,000 \
\text { Utilities Expense } & 2,500 \
\text { Insurance Expense } & 2,000\\text { Total expenses }&&73,500\
\text { Net income (loss) }&&\$(3,500)
\end{array}$
The entry to close Income Summary to Retained Earnings includes

Question

The income statement for the year 2011 of Poole Co.contains the following information: 
$\begin{array}{lr}\text { Revenues }&&\$70,000\
\text { Expenses: }\\text { Wages Expense } & \$ 45,000 \
\text { Rent Expense } & 12,000 \
\text { Advertising Expense } & 6,000 \
\text { Supplies Expense } & 6,000 \
\text { Utilities Expense } & 2,500 \
\text { Insurance Expense } & 2,000\\text { Total expenses }&&73,500\
\text { Net income (loss) }&&\$(3,500)
\end{array}$ 
The entry to close Income Summary to Retained Earnings includes

Quizplus · Accepted Answer

The net loss of $3,500 is closed to Retained Earnings by crediting Income Summary and debiting Retained Earnings.

The Income Statement for the Year 2011 of Poole Co