The Income Statement for the Month of June, 2014 of Taylor

question 17

Multiple Choice

The income statement for the month of June, 2014 of Taylor Enterprises contains the following information: The entry to close Income Summary to Retained Earnings includes

• A) a debit to Revenue for ₤8,000.
• B) credits to Expenses totalling ₤4,100.
• C) a credit to Income Summary for ₤3,900
• D) a credit to Retained Earnings for ₤3,900.

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Definitions:

Quasi Contract

An obligation imposed by law to prevent unjust enrichment, even though no formal contract exists between the parties.

Remedies

The means by which a right is enforced or the violation of a right is prevented, redressed, or compensated.

Sale of Goods

A transactional agreement between a seller and a buyer for the exchange of personal property for a certain price.

Complete Construction

The process of finishing a building or construction project in all its parts, fully executed according to the plan and specifications.