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 find the amount to be closed to Retained Earnings, we need to calculate the total revenues minus the total expenses. 
Total revenues = $180,000 
Total expenses = $115,600 
$180,000 - $115,600 = $64,400 
Therefore, the correct answer is (B) $64,400.

The Following Information Is Available for Brendon Company Before Closing