The Income Statement for Omega, Inc. had the following balances at 12/31/X1 Reve

Question

The Income Statement for Omega, Inc. had the following balances at 12/31/X1 Revenues Sales Revenue$1,250,000 Interest Revenue 750,000 Expenses Depreciation Exp Salaries Expense Insurance Expense Rent Expense Utilities Expense Interest Expense $250,000 $950,000 $100,000 $130,000 $15,000 $2,500 The 20X1 entry for closing out the income summary account would be: Income Summary Income Summary Cash Retained Earnings Cash Retained Earnings Income Summary Income Summary $552,500 $552,500 $552,500 $552,500 $552,500 $552,500 $552,500 $552,500

Explanation / Answer

Ans. B Income Summary 552500 Retained Earnings 552500 The balance of income summary is transferred to retained earnings.

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