Question

64. The income statement for the year 2015 of Fugazi Co. contains the following information: Revenues $70,000 Expenses: Salaries and Wages Expense $45,000 Rent Expense 12,000 Advertising Expense 10,000 Supplies Expense 6,000 Utilities Expense 2,500 Insurance Expense 2,000 Total expenses 77,500 Net income (loss) $(7,500) The entry to close Income Summary to Retained Earnings includes A) a credit to Retained Earnings for $7,500. B) a debit to Revenue for $70,000. C) credits to Expenses totalling $77,500. D) a credit to Income Summary for $7,500.

          64. The income statement for the year 2015 of Fugazi Co. contains the following
information:
Revenues                                                                     $70,000
Expenses:
Salaries and Wages Expense                                         $45,000
Rent Expense                                                                12,000
Advertising Expense                                                        10,000
Supplies Expense                                                             6,000
Utilities Expense                                                            2,500
Insurance Expense                                                           2,000
Total expenses                                                              77,500
Net income (loss)                                                        $(7,500)
The entry to close Income Summary to Retained Earnings includes
A) a credit to Retained Earnings for $7,500.
B) a debit to Revenue for $70,000.
C) credits to Expenses totalling $77,500.
D) a credit to Income Summary for $7,500.

64. The income statement for the year 2015 of Fugazi Co. contains the following
information:
Revenues 70,000
Expenses:
Salaries and Wages Expense45,000
Rent Expense 12,000
Advertising Expense 10,000
Supplies Expense 6,000
Utilities Expense 2,500
Insurance Expense 2,000
Total expenses 77,500
Net income (loss) (7,500)
The entry to close Income Summary to Retained Earnings includes
A) a credit to Retained Earnings for7,500.
B) a debit to Revenue for 70,000.
C) credits to Expenses totalling77,500.
D) a credit to Income Summary for 7,500.

Added by John M.

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