A summary of selected ledger accounts appears below for Alberto's Plumbing Services for the current calendar year-end. Common Stock
12/318,500 1/16,500
12/3115,000
Retained Earnings
6/303,500 12/3115,000
11/305,000
Income Summary
12/3118,500 12/3133,500
12/3115,000

Net income for the period is

a. $15,000

b. $33,500

c. $13,000

d. $18,500

a. $15,000

Explanation:

common stock:

12/31 = $8,500                    1/1 = $5,500

                                           12/31 = $15,000

retained earnings:

6/30 = $3,500                   12/31 = $15,000

11/30 = $5,000

Income Summary

12/31 = $18,500                 12/31 = $33,500

12/31 = $15,000

income summary closing accounts:

Dr Revenue 33,500

    Cr Income summary 33,500

Dr Income summary 18,500

    Cr Expenses 18,500

Dr Retained earnings 15,000

    Cr Income summary 15,000

net income = amount of income summary closed against retained earnings = $15,000