Rose Company earned revenues of $18,000 and incurred expenses of $4000.The drawings of Mary Rose,the owner,were $2500.What is the balance in the Income summary account after closing profit or loss to the Rose,capital account?

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The income summary account is used to close revenues and expenses. Revenues of $18,000 minus expenses of $4,000 result in a net income of $14,000. This net income is then closed to the capital account, leaving the income summary account with a balance of $0. Drawings do not affect the income summary account.

Rose Company Earned Revenues of $18,000 and Incurred Expenses of $4000.The