Dogwood Company earned revenues of 19000 and incurred expens

Dogwood Company earned revenues of $19,000 and incurred expenses of $7,000. The owner made withdrawals of $3,500. What is the balance in the Income Summary account prior to closing net income or loss to the Owner, Capital account?

a.debit balance of $12,000
b.debit balance of $8,500
c.credit balance of $12,000
d.credit balance of $19,000

Solution

Balance in the Income Summary account = 19000-7000 = $12000 Credit balance Option C is correct