The Income Statement for the Month of June, 2015 of Camera

question 86

Multiple Choice

The income statement for the month of June, 2015 of Camera Obscura Enterprises contains the following information: $\begin{array}{lr}\text { Revenues }&&\$7,000\\\text { Expenses: }\\\text { Salaries and Wages Expense } & \$ 3,000 \\\text { Rent Expense } & 1,500 \\\text { Advertising Expense } & 800 \\\text { Supplies Expense } & 300 \\\text { Insurance Expense } & 100\\\text { Total expenses }&&5,700\\\text { Net income }&&\$1,300\end{array}$ The entry to close the revenue account includes a

• A) debit to Income Summary for $1,300.
• B) credit to Income Summary for $1,300.
• C) debit to Income Summary for $7,000.
• D) credit to Income Summary for $7,000.

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Definitions:

Court

An institution that has the authority to decide disputes, administer justice, and apply the law.

Remedy

A form of legal redress used to enforce a right or compensate for harm or injury caused by the breach of a legal duty.

Unconscionability

A doctrine in contract law that allows courts to refuse the enforcement of contracts that are grossly unfair or oppressive, due to a significant imbalance in power or information.

Unequal Bargaining Power

A situation where one party in a negotiation has significantly more leverage, influence, or power over the other.