A company had revenue of $550,000,rent expense of $100,000,utility expense of $10,000,salary expense of $125,500,depreciation expense of $39,000,advertising expense of $40,200,dividends in the amount of $183,000,and an ending balance in retained earnings of $402,300.What is the appropriate journal entry to close income summary?
A)Income Summary…………….$235,300 Retained Earnings………………..$235,300
B)Retained Earnings……………$235,300 Income Summary………………..$235,300
C)Income Summary…………….$52,300 Retained Earnings………………..$52,300.
D)Retained Earnings…………….$52,300 Income Summary………………...$52,300
E)Income Summary……………...$314,700 Retained Earnings…………………$314,700

Question

Quizplus · Accepted Answer

Income Summary is closed to Retained Earnings for the amount of net income, which is $235,300 ($550,000 - $100,000 - $10,000 - $125,500 - $39,000 - $40,200).

A Company Had Revenue of $550,000,rent Expense of $100,000,utility Expense