Question

Jane Upton, the VP of Finance for Piscataway Sports Inc. is reviewing the following information: The income statement for the month of June, 2018 for Piscataway Sports contains the following information:

Revenues                                                                                                   $7,000

Expenses:

      Salaries and Wages Expense                                            $3,000

      Rent Expense                                                                      1,500

      Advertising Expense                                                               800

      Supplies Expense                                                                   300

      Insurance Expense                                                                 100

            Total expenses                                                                                5,700

Net income                                                                                                 $1,300

The entry to close the revenue account includes a

Group of answer choices

credit to Income Summary for $1,300.

debit to Income Summary for $7,000.

debit to Income Summary for $1,300

credit to Income Summary for $7,000.

Answer 1

Journal entry for closing of revenue account :

Debit  Revenue $7,000

Credit Income summary $7,000

So Answer is : Credit to Income summary $7,000