The following information is available for Brendon Company, Inc. 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, Inc. 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 first calculate the net income. 
Net income = Revenue - Expenses 
= $380,000 - $315,600 
= $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, Inc