Use This Information from the Income Statement Columns of the Work

Multiple Choice

Use this information from the Income Statement columns of the work sheet of Corner Laundry Service to answer the following question. $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text {Income Statement }$
$\begin{array}{|l|r|r|}\hline&\text { Debit }& \text { Credit }\\ \hline \text { Laundry Revenue } & & 2,500 \\\hline \text { Wages Expense } & 750 & \\\hline \text { Rent Expense } & 500 & \\\hline \text { Supplies Expense } & 300 & \\\hline \text { Insurance Expense } & 200 & \\\hline \text { Income Taxes Expense } & 50 & \\\hline & 1,800 & 2,500 \\ \text { Net Income } & 700 & \\\hline & 2,500 & 2,500 \\\hline\end{array}$
The entry to close Income Summary includes a

A)
$\begin{array}{c}\text { Income Summary }&2,500 \\&\text { Retained Earnings }&2,500\end{array}$
B)
$\begin{array}{l}\text { Common Stock } &700\\&\text { Income Summary }&700\end{array}$
C)
$\begin{array}{l}\text { Income Summary } &700\\&\text { Retained Earnings }&700\end{array}$
D)
$\begin{array}{l}\text { Income Summary }&700 \\&\text { Common Stock }&700\end{array}$