Closing entries included debits to revenues for a total of $5,300, credits to expenses for a total of $3,400, and a credit to dividends for $700. The net income for the month was:
A)$700.
B)$1,900.
C)$3,400.
D)$4,600.

Question

Quizplus · Accepted Answer

By subtracting total credits (expenses and dividends) from total debits (revenues), we can determine net income:

$5,300 (revenues) - $3,400 (expenses) - $700 (dividends) = $1,200

Therefore, the net income for the month was $1,200, which is found in answer choice B.

Closing Entries Included Debits to Revenues for a Total of $5,300