20.The income statement for the year 2015 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)

The entry to close Income Summary to Owners Capital includes

a.a debit to Revenue for $70,000.b.credits to Expenses totaling $75,500. c.a credit to Income Summary for $5,500. d.a credit to Owners Capital for $5,500.

f Income Summary has a credit balance after revenues and expenses have been closed into it, the closing entry for Income Summary will include a(Points : 1)

a.debit to the owner's capital account.b.debit to the owner's drawings account.

c.credit to the owner's capital account.

d.credit to the owner's drawings account.

As Mel Smith was doing his year-end accounting, he noticed that the bookkeeper had made errors in recording several transactions. The erroneous transactions are as follows: (a) A check for $700 was issued for goods previously purchased on account. The bookkeeper debited Accounts Receivable and credited Cash for $700. What is the correcting entry needed for this transaction?(Points : 1)

a.Interest Expense 700 Interest Receivable 700 b.Cash 700 Accounts Receivable 700 c.Accounts Payable 700 Accounts Receivable 700 d.Cash 700 Depreciation Expense 700