Bach, Inc. had closing entries which included debits to revenues for a total of $6,425, credits to expenses for a total of $3,000, and credits to dividends for $400. Bach's net income was $3,425.

Question

Quizplus · Accepted Answer

The $6,425 debits to revenues and $3,000 credits to expenses suggest that revenue exceeded expenses by $3,425, which is the net income. The credit to dividends has no effect on net income. Therefore, the given information is consistent with the net income of $3,425.

Bach, Inc Had Closing Entries Which Included Debits to Revenues for for a Total