The Income Statement for the Month of June, 2011 of Taylor

Multiple Choice

The income statement for the month of June, 2011 of Taylor Enterprises contains the following information: $\begin{array}{lr}\text { Revenues }&&£7,000\\\text { Expenses: }\\\text { Wages Expense } & £ 2,000 \\\text { Rent Expense } & 1,000 \\\text { Supplies Expense } & 300 \\\text { Advertising Expense } & 200 \\\text { Insurance Expense } & 100\\\text { Total expenses }&&3,600\\\text { Net income }&&£(3,400) \end{array}$
After the revenue and expense accounts have been closed, the balance in Income Summary will be

A) £0.
B) a debit balance of $£ 3,400$ .
C) a credit balance of $£ 3,400$ .
D) a credit balance of $£ 7,000$ .