income summary-books $5,500\nincome summary-music $4,500\nsales discount-books $2,500\nsales returns and…

income summary-books $5,500\nincome summary-music $4,500\nsales discount-books $2,500\nsales returns and allowances-books $2,000\nsales discount-music $3,000\nsales returns and allowances-music $2,500\npurchases-books $12,000\npurchases-music $14,000\nadvertising expense-books $3,500\nadvertising expense-music $2,000\nbased on the information provided, what is the correct journal entry to record the closing entry for income statement accounts with debit balances?\na. debit income summary-books, $5,500, income summary-music, $4,500, sales discount-books, $2,500, sales returns and allowances-books, $2,000, sales discount-music, $3,000, sales returns and allowances-music, $2,500, purchases-books, $12,000, purchases-music, $14,000, advertising expense-books, $3,500, advertising expense-music, $2,000; credit income summary-general, $51,500\nb. debit income summary-general, $51,500; credit income summary-books, $5,500, income summary-music, $4,500, sales discount-books, $2,500, sales returns and allowances-books, $2,000, sales discount-music, $3,000, sales returns and allowances-music, $2,500, purchases-books, $12,000, purchases-music, $14,000, advertising expense-books, $3,500, and advertising expense-music, $2,000\nc. debit income summary, $10,000; credit sales, $10,000\nd. debit sales, $10,000; credit income summary, $10,000

income summary-books $5,500\nincome summary-music $4,500\nsales discount-books $2,500\nsales returns and allowances-books $2,000\nsales discount-music $3,000\nsales returns and allowances-music $2,500\npurchases-books $12,000\npurchases-music $14,000\nadvertising expense-books $3,500\nadvertising expense-music $2,000\nbased on the information provided, what is the correct journal entry to record the closing entry for income statement accounts with debit balances?\na. debit income summary-books, $5,500, income summary-music, $4,500, sales discount-books, $2,500, sales returns and allowances-books, $2,000, sales discount-music, $3,000, sales returns and allowances-music, $2,500, purchases-books, $12,000, purchases-music, $14,000, advertising expense-books, $3,500, advertising expense-music, $2,000; credit income summary-general, $51,500\nb. debit income summary-general, $51,500; credit income summary-books, $5,500, income summary-music, $4,500, sales discount-books, $2,500, sales returns and allowances-books, $2,000, sales discount-music, $3,000, sales returns and allowances-music, $2,500, purchases-books, $12,000, purchases-music, $14,000, advertising expense-books, $3,500, and advertising expense-music, $2,000\nc. debit income summary, $10,000; credit sales, $10,000\nd. debit sales, $10,000; credit income summary, $10,000

Answer

Answer:

B. debit Income Summary-General, $51,500; credit Income Summary-Books, $5,500, Income Summary-Music, $4,500, Sales Discount-Books, $2,500, Sales Returns and Allowances-Books, $2,000, Sales Discount-Music, $3,000, Sales Returns and Allowances-Music, $2,500, Purchases-Books, $12,000, Purchases-Music, $14,000, Advertising Expense-Books, $3,500, and Advertising Expense-Music, $2,000

Explanation:

Step1: Identify debit - balance accounts

Sales Discount - Books ($2,500), Sales Returns and Allowances - Books ($2,000), Sales Discount - Music ($3,000), Sales Returns and Allowances - Music ($2,500), Purchases - Books ($12,000), Purchases - Music ($14,000), Advertising Expense - Books ($3,500), Advertising Expense - Music ($2,000) and Income Summary - Books ($5,500), Income Summary - Music ($4,500) are debit - balance income statement accounts.

Step2: Calculate total debit amount

$2500 + 2000+3000 + 2500+12000+14000+3500+2000 + 5500+4500=51500$

Step3: Determine closing entry

To close debit - balance income statement accounts, we debit a general Income Summary account for the total amount ($51,500) and credit each individual debit - balance income statement account.