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Logan Service Company Earned Revenues of $100,000 and Incurred Expenses

question 98

Essay

Logan Service Company earned revenues of $100,000 and incurred expenses of $107,000.The owner's name of the sole proprietorship is James Logan.Prepare the entry to close the Income Summary account.Omit explanation.


Definitions:

Project Analysis

The process of reviewing and evaluating a proposed project to determine its feasibility and potential profitability.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue contributes to covering fixed costs and generating profit.

Total Costs

The sum of all expenses incurred by a business in producing goods or services, including fixed and variable costs.

Net Present Value

The divergence in the current worth of cash entering and leaving an entity throughout a specified timeframe.

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