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Financial Accounting

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Moderate

Balance of Income Summary

FINACT-XN1FLT

TeaLeaf Co. earned revenues of \$100,000 and incurred expenses of \$98,000 last year. What was the balance of the Income Summary account before it was closed to the Retained Earnings account?

A

Debit balance of \$100,000

B

Debit balance of \$2,000

C

Credit balance of \$98,000

D

Credit balance of \$2,000