3. The income statement for the year 2014 of Fugazi Co. contains the following

information:

Revenues

Expenses:

Salaries and Wages Expense $45,000

$70,000

Rent Expense 12,000

Advertising Expense 10,000

Supplies Expense 6,000

Utilities Expense 2,500

Insurance Expense

Total expenses

2,000

77,500

Net income (loss) $ (7,500)

After the revenue and expense accounts have been closed, the balance in Income Summary will

be

a. $0.

b. a debit balance of $7,500.

c. a credit balance of $7,500.

d. a credit balance of $70,000.