The income statement for the month of June 2016 of Snap Shot Inc. contains the following information: $\begin{array}{lr}
\text { Revenues } &&\$7,300 \
\text { Expenses: } & \
\text { Salaries and Wages Expense } & \$ 3,000 \
\text { Rent Expense } & 1,300 \
\text { Advertising Expense } & 700 \
\text { Supplies Expense } & 200 \
\text { Insurance Expense } & 100 \
\quad \text { Total expenses } &&5,300 \
\text { Net income } &&\$2,000
\end{array}$ After the revenue and expense accounts have been closed the balance in Income Summary will be
A) a debit balance of $7300.
B) a debit balance of $2000.
C) a credit balance of $2000.
D) a credit balance of $7300.

Question

Quizplus · Accepted Answer

The Income Summary account is used to summarize the revenue and expenses for the period. After closing these accounts, the balance in the Income Summary will be a credit balance of $2,000, representing the net income (Revenues of $7,300 less Expenses of $5,300).

The Income Statement for the Month of June 2016 of Snap