The income statement for the year 2013 of Fugazi Co. contains the following information:

Revenues				$70,000
Expenses:
	Salaries and Wages Expense		$45,000
	Rent Expense		12,000
	Advertising Expense		8,000
	Supplies Expense		6,000
	Utilities Expense		2,500
	Insurance Expense		2,000
		Total expenses		75,500
Net income (loss)				($5,500)

At January 1, 2013, Fugazi reported retained earnings of $50,000. Dividends for the year totalled $10,000. At December 31, 2013, the company will report retained earning of

$15,500.

$34,500.

$40,000.

$45,500

QUESTION 2 (USE SAME DATA AS GIVEN ABOVE): After all closing entries have been posted, the Income Summary account will have a balance of

$0.

$5,500 debit.

$5,500 credit.

$34,500 credit.

QUESTION 3:

The entry to close Income Summary to Retained Earnings includes

credits to Expenses totalling $75,500.

a credit to Income Summary for $5,500.

a credit to Retained Earning for $5,500.

a debit to Revenue for $70,000.