the income statement for the year ended december 202x for bek company contains the following information: •…

the income statement for the year ended december 202x for bek company contains the following information: • revenues $5,000,000 • expenses: • salaries and wages expense $2,000,000 • rent expense 850,000 • depreciation expense 575,000 • insurance expense 70,000 • total expenses 3,495,000 • net income $1,505,000 the entry to close the revenue account includes a a credit to income summary for $1,405,000. b debit to income summary for $1,405,000. c credit to income summary for $5,000,000. d debit to income summary for $5,000,000.

the income statement for the year ended december 202x for bek company contains the following information: • revenues $5,000,000 • expenses: • salaries and wages expense $2,000,000 • rent expense 850,000 • depreciation expense 575,000 • insurance expense 70,000 • total expenses 3,495,000 • net income $1,505,000 the entry to close the revenue account includes a a credit to income summary for $1,405,000. b debit to income summary for $1,405,000. c credit to income summary for $5,000,000. d debit to income summary for $5,000,000.

Answer

Brief Explanations:

When closing the revenue account, we debit the revenue account and credit the Income - Summary account for the amount of revenues. Here, the revenues are $5,000,000. So, the credit to Income Summary should be for $5,000,000.

Answer:

C. credit to Income Summary for $5,000,000.