47.

The income statement for the year 2019 of Nova Co. contains the following information:

Revenues $70,000

Expenses:

Wages Expense $ 45,000

Rent Expense 12,000

Advertising Expense 6,000

Supplies Expense 6,000

Utilities Expense 2,500

Insurance Expense 2,000

Total expenses 73,500

Net income (loss) $(3,500)

The entry to close the revenue account includes a:

		Debit to Income Summary for $3,500.
		Credit to Income Summary for $3,500.
		Debit to Revenues for $70,000.
		Credit to Revenues for $70,000.

Question 49

The income statement for the year 2019 of Nova Co. contains the following information:

Revenues $70,000

Expenses:

Wages Expense $ 45,000

Rent Expense 12,000

Advertising Expense 6,000

Supplies Expense 6,000

Utilities Expense 2,500

Insurance Expense 2,000

Total expenses 73,500

Net income (loss) $(3,500)

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

		$0.
		A Debit balance of $3,500.
		A Credit balance of $3,500
		A Credit balance of $70,000.

Question 50

The income statement for the year 2019 of Nova Co. contains the following information:

Revenues $70,000

Expenses:

Wages Expense $ 45,000

Rent Expense 12,000

Advertising Expense 6,000

Supplies Expense 6,000

Utilities Expense 2,500

Insurance Expense 2,000

Total expenses 73,500

Net income (loss) $(3,500)