Bugati Co

The income statement for the year 2020 of Bugati Co. contains the following information:

Revenues $73,000

Expenses:

Salaries and Wages Expense $43,000

Rent Expense 12,000

Advertising Expense 11,000

Supplies Expense 6,000

Utilities Expense 3,500

Insurance Expense 4,000

Total expenses 79,500

Net income (loss) $ (6,500)

1- The entry to close the revenue account includes a

a.debit to Income Summary for $6,500.

b.credit to Income Summary for $6,500.

C.debit to Revenues for $73.000.

d.credit to Revenues for $73,000.

2- After all closing entries have been posted, the revenue account will have a balance of

a. 73,000$ debit.

b. 73,000$ credit.

c. 0$.

d. 6,500 credit

3- At January 1, 2020, Bugati reported owner's equity of $50,000. Owner drawings for the year totalled $13,000. At December 31, 2020, the company will report owner's equity of

a. $37,000.

b. $30,500.

c. $43,000.

d. $19,000

4- The entry to close Income Summary to Owner's Capital includes

a. credits to Expenses totalling $79,500.

b. a credit to Owner's Capital for $6,500.

c. a credit to Income Summary for $6,500

d. a debit to Revenue for $73,000.

5- After the revenue and expense accounts have been closed, the balance in income ummary will be

a. $0.

b. a debit balance of $6,500.

c. a credit balance of $73,000.

d. a credit balance of $6,500.

6- The entry to close the expense accounts includes a

a. debit to Income Summary for

$79,500.

b. debit to Income Summary for

$6,500

C. credit to Income Summary for

$6,500,

d. debit to Utilities Expense for $3,500.