The income statement for the year 2013 of fugazi co. contains the following information:

revenues $70,000
expenses:
salaries and wages expense $45,000
rent expense 12,000
advertising expense 8,000
supplies expense 6,000
utilities expense 2,500
insurance expense
2,000
total expenses
75,500
net income (loss)
($5,500)

at january 1, 2013, fugazi reported retained earnings of $50,000. dividends for the year totalled $10,000. at december 31, 2013, the company will report retained earning of

$15,500.

$34,500.

$40,000.

$45,500

question 2 (use same data as given above):

after all closing entries have been posted, the income summary account will have a balance of

$0.

$5,500 debit.

$5,500 credit.

$34,500 credit.

question 3:

the entry to close income summary to retained earnings includes

credits to expenses totalling $75,500.

a credit to income summary for $5,500.

a credit to retained earning for $5,500.

a debit to revenue