The Income Statement for Omega, Inc. had the following balances at 12/31/X1 Revenues Sales Revenue $1, 250,000 Interest Revenue $750,000 Expenses Depreciation Exp $250,000 Salaries Expense $950.000 Insurance Expense $100,000 Rent Expense $130,000 Utilities Expense $15,000 Interest Expense $2, 500 The 20X1 entry for closing out the income summary account would be: a. Income Summary $552.500 cash $552.500 b. Income Summary $552.500 retained Earnings $552.500 c. Cash $552.500 d. Retained Earnings $552.500 Income Summary $552.500 Which of the following statements about a periodic inventory system is true? a. Companies determine cost of goods sold only at the end of the accounting period. b. Companies continuously maintain detailed records of the cost of each inventory purchase and sale. c. The periodic system provides better control over inventories than a perpetual system. d. The increased use of computerized systems has increased the use of the periodic system. If sales revenues are $400,000, cost of goods sold is $310,000, and operating expenses are $60,000, what is the gross profit? a. $30,000 b. $90,000 c. $340,000 d. $400,000 If beginning inventory is $60.000, cost of goods purchased is $380,000, and ending inventory is $50,000, what is the cost of goods sold under a periodic system? a. $390,000 b. $370,000 c. $330,000 d. $420,000