The adjusted balances for Tomas Co. are listed below.
Cash, $20,000
Accounts Receivable, $2,500
Prepaid Insurance, $3,500
Equipment, $15,000
Accumulated Depreciation, $2,000
Accounts Payable, $4,000
J.Tomas, Capital, $30,000
J.Tomas, Drawing, $10,000
Income from Services, $35,000
Wages Expense, $12,000
Rent Expense, $8,000
The entry to close revenue would involve a
A) debit to Income Summary, $35,000.
B) credit to Income from Services, $35,000
C) debit to Income from Services, $35,000.
D) None of the answers listed

Question

The adjusted balances for Tomas Co. are listed below.
 Cash, $20,000
Accounts Receivable, $2,500
Prepaid Insurance, $3,500
Equipment, $15,000
Accumulated Depreciation, $2,000
Accounts Payable, $4,000
J.Tomas, Capital, $30,000
J.Tomas, Drawing, $10,000
Income from Services, $35,000
Wages Expense, $12,000
Rent Expense, $8,000
The entry to close revenue would involve a
A) debit to Income Summary, $35,000.
B) credit to Income from Services, $35,000
C) debit to Income from Services, $35,000.
D) None of the answers listed

Quizplus · Accepted Answer

To close revenue accounts, you debit the revenue account to reduce its balance to zero and credit the Income Summary account. In this case, debiting Income from Services for $35,000 accomplishes this.

The Adjusted Balances for Tomas Co