Income Statement

Revenues
Service Rev. credit $5,000
Expenses
Wage exp. debit $800
Advertising exp. debit 600
Rent exp. debit 200
Supplies exp. debit 100
Insurance exp. debit 300
Total expense. credit $2000
Net Income $credit 3000

1. The entry to close the Service revenue account includes
a. debit to service rev. for 5000
b. credit to service rev for 5000
c. debit to income summary for 5000
d. debit to retained earnings 5000

2. The entry to close the Income summary
a. debit to income summary for 3000
b. credit to income summary for 3000
c. debit to retained earnings for 3000
d. credit to common stock for 3000

3. the entry to close the expense account includes
a. debit to wage exp. 800
b. credit to income summary for 2000
c. debit to income summary for 2000
d. credit to retained earnings for 2000