Rosewood, Inc. earned revenues of $19,000 and incurred expen

Rosewood, Inc. earned revenues of $19,000 and incurred expenses of $4,000. The company declared and paid cash dividends of $1,500. What is the balance in the Income Summary account after closing net income or loss to the Retained Earnings account?

A) debit balance of $19,000
B) credit balance of $4,000
C) credit balance of $15,000
D) balance of $0

ANSWER

D .Net Income will be transferred to Retained Earnings account.
The balance in the Income Summary account after closing Net Income or Loss is $0.