Emerald, Inc., earned revenues of $69,000 and incurred expen

Emerald, Inc., earned revenues of $69,000 and incurred expenses of $74,000. No dividends were declared. Which of the following statements is correct?

A) The entry to close Income Summary is the same regardless of a net income or a net loss.
B) Retained Earnings will be debited for $5,000 and Income Summary will be credited for $5,000.
C) The entries to close revenues and expenses will differ if there is a net loss.
D) The entry to close Income Summary requires a debit to the Income Summary account.

ANSWER

B