The following information is available for Brendon Company before closing the accounts.What will be the amount in the Income Summary account that should be closed to Retained earnings?
A)$80,000.
B)$64,400.
C)$43,000.
D)$32,400.
E)$42,400.

Question

The following information is available for Brendon Company before closing the accounts.What will be the amount in the Income Summary account that should be closed to Retained earnings? 
A)$80,000. 
B)$64,400. 
C)$43,000. 
D)$32,400. 
E)$42,400.

Quizplus · Accepted Answer

To determine the amount in the Income Summary account that should be closed to Retained earnings, we need to take the total revenue and subtract the total expenses.

Total revenue = $140,000 
Total expenses = $75,600

$140,000 - $75,600 = $64,400

Therefore, the amount in the Income Summary account that should be closed to Retained earnings is $64,400.

The Following Information Is Available for Brendon Company Before Closing