Martinville Company earned revenues of $20,000 and incurred expenses of $4,000.Martinville withdrew $3,500 for personal use.What is the balance in the Income Summary account prior to closing net income or loss to the Martinville,Capital account?

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Quizplus · Accepted Answer

The Income Summary account reflects the company's net income or loss, which is calculated as revenues minus expenses. Here, $20,000 (revenues) - $4,000 (expenses) = $16,000 net income, which is a credit balance.

Martinville Company Earned Revenues of $20,000 and Incurred Expenses of $4,000.Martinville