A debit balance in the income summary account indicates what?

Which of the following entries will properly close the Revenue account?

• Smith Photography account balances at 31, 20x7, before recording adjusting entries: Cash $26,667 debit Prepaid Insurance $450 debit Film on Hand $250 debit Cameras $20,000 debit Accumulated Depreciation - Cameras $3,667 credit Accounts Payable $7,000 credit Unearned Revenue $5,700 credit Note Payable $3,000 credit Capital stock $1,000 credit Retained Earnings $5,800 credit Dividends $1,200 debit Revenue $28,000 credit Utilities Expense $3,200 debit Salaries Expense $2,400 debit Other information: Film on Hand on 31,20x7, was $180. The cameras were purchased on 1,20x7. The estimated life is 5 years. The balance in unearned revenue is $2,000. Interest owed by not paid on the note was $30. Salaries owed but not paid at 12/31 were $2,000 A.$28,000 debit, Revenue;$28,000 credit, Incom Summary B.$28,000 debit,Incom Summary; $28,000credit, Revenue C.$31,700 debit,Income Summary; $31,700 credit,Revenue D.$31,700 debit,Revenue; $31,700 credit, Income Summary

• Answer:

  D.$31,700 debit,Revenue; $31,700 credit, Income Summary