o. Emerald, Inc., earned revenues of $69,000 and incurred expenses of $74,000. N

Question

o. Emerald, Inc., earned revenues of $69,000 and incurred expenses of $74,000. No dividends were eclared. Which of the following statements is correct? A. B. C. D. Retained Earnings will be debited for $5,000 and Income Summary will be credited for $5,000. The entry to close Income Summary is the same regardless of a net income or a net loss. The entries to close revenues and expenses will differ if there is a net loss. The entry to close Income Summary requires a debit to the Income Summary account.

Explanation / Answer

in this case there is a net loss of $ 5000the following statement is correct:

A) Retained Earnings will be debited for $ 5000 and Income Summary will be credited for $ 5000.

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