Use this information from the Income Statement columns of the work sheet of Corner Laundry Service to answer the following question. $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $$\text {Income Statement } $
$\begin{array}{|l|r|r|}
\hline&\text { Debit }& \text { Credit }\
\hline \text { Laundry Revenue } & & 2,500 \
\hline \text { Wages Expense } & 750 & \
\hline \text { Rent Expense } & 500 & \
\hline \text { Supplies Expense } & 300 & \
\hline \text { Insurance Expense } & 200 & \
\hline \text { Income Taxes Expense } & 50 & \
\hline & 1,800 & 2,500 \
\text { Net Income } & 700 & \
\hline & 2,500 & 2,500 \
\hline
\end{array}$
The entry to close Income Summary includes a

Question

Use this information from the Income Statement columns of the work sheet of Corner Laundry Service to answer the following question.  $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $$\text {Income Statement } $
$\begin{array}{|l|r|r|}
\hline&\text {  Debit }& \text { Credit }\ 
\hline \text { Laundry Revenue } & & 2,500 \
\hline \text { Wages Expense } & 750 & \
\hline \text { Rent Expense } & 500 & \
\hline \text { Supplies Expense } & 300 & \
\hline \text { Insurance Expense } & 200 & \
\hline \text { Income Taxes Expense } & 50 & \
\hline & 1,800 & 2,500 \
 \text { Net Income } & 700 & \
\hline & 2,500 & 2,500 \
\hline
\end{array}$  
The entry to close Income Summary includes a

Quizplus · Accepted Answer

The entry to close the Income Summary account involves transferring the net income to Retained Earnings. The net income is $700, so the entry would be a debit to Income Summary for $700 and a credit to Retained Earnings for $700.

Use This Information from the Income Statement Columns of the Work