Use This Information from the Income Statement Columns of the Work

question 17

Multiple Choice

Use this information from the Income Statement columns of the work sheet of Corner Laundry Service to answer the following question.
$\begin{array} { | l | r | r | } \hline & { \text { Income Statement } } \\\hline & \text { Debit } & \text { Credit } \\\hline \text { Laundry Revenue } & & 2,500 \\\hline \text { Wages Expense } & 750 & \\\hline \text { Rent Expense } & 500 & \\\hline \text { Supplies Expense } & 300 & \\\hline \text { Insurance Expense } & 200 & \\\hline \text { Income Taxes Expense } & 50 & \\\hline & 1,800 & 2,500 \\\text { Net Income } & 700 & \\\hline & 2,500 & 2,500 \\\hline\end{array}$
The entry to close the Laundry Revenue account includes a

• A)\(\begin{array} { c c c }
• \text { Laundry Revenue } & 2,500 \\
• \text { Income Summary } & & 2,500
• \end{array}\)
• B)Income Summary \(\quad 2,500\)
• Laundry Revenue\(\quad\)\(\quad\)2,500
• C)Retained Earnings\(\quad\)\(\quad\)2,500
• Income Summary\(\quad\)\(\quad\)2,500
• D)Retained Earnings\(\quad\)\(\quad\)2,500
• Laundry Revenue\(\quad\)\(\quad\)2,500

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Definitions:

Shareholder Models

Refer to theoretical frameworks that describe how shareholders interact with and influence corporate governance and decision-making processes.

Corporate Governance

Systems, principles, and processes by which a company is directed and controlled, focusing on the relationship among various stakeholders, including shareholders and the board of directors.

Stakeholder Interaction Model

A framework for analyzing how an organization interacts with and responds to the needs of those individuals or groups that have an interest in its activities.

Primary Stakeholders

Individuals or groups with a direct interest or stake in the outcome of a project, decision, or policy, such as employees, customers, and investors.