Martinville, Inc. earned revenues of

$ 12 comma 000$12,000

and incurred expenses of

$ 4 comma 500$4,500.

The company declared and paid cash dividends of

$ 2 comma 500$2,500.

What is the balance in the Income Summary account prior to closing net income or loss to the Retained Earnings account?

A.

debit balance of $ 7 comma 500$7,500

B.

debit balance of $ 5 comma 000$5,000

C.

credit balance of $ 12 comma 000$12,000

D.

credit balance of $ 7 comma 500