Question

The income statement for the year 2015 of Fugazi Co. contains the following information: Revenues$70,000 Expenses: Salaries and Wages Expense$45,000 Rent Expense12,000 Advertising Expense10,000 Supplies Expense6,000 Utilities Expense2,500 Insurance Expense2,000 Total expenses77,500 Net income (loss)$ (7,500) After all closing entries have been posted, the Income Summary account will have a balance of

Answer 1

Answer:

$0

Explanation:

When the closing entries are recorded, so the net profit or net loss would be transferred to the retained earning account with the help of the closing entries

Therefore after closing entries posting, the balance in the income summary account would be zero and the same is to be considered

hence, the balance would be zero