Woods Company earned revenues of $12,000 and incurred expenses of $9,500.The owner,Woods,withdrew $3,000.What is the balance in the Income Summary account after closing net income or loss to the Woods,Capital account?
A) debit balance of $12,000
B) credit balance of $9,500
C) credit balance of $2,500
D) balance of $0

Question

Quizplus · Accepted Answer

D) Net Income will be transferred to Woods, Capital account.
The balance in the Income Summary account after closing net income or loss is $0.

Woods Company Earned Revenues of $12,000 and Incurred Expenses of $9,500.The