the income summary account

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Income Summary

THE INCOME SUMMARY ACCOUNTTHE INCOME SUMMARY ACCOUNT

Lesson 17-2, page 434Lesson 17-2, page 434

DebitTotal expenses

CreditRevenue (greater than expenses)(Credit balance is the net income.)


CLOSING ENTRY FOR AN INCOME STATEMENT CLOSING ENTRY FOR AN INCOME STATEMENT ACCOUNT WITH A CREDIT BALANCEACCOUNT WITH A CREDIT BALANCE

1

2

3. Debit to Close

1. Heading

4. Credit

2. Date

3

4



CLOSING ENTRY FOR INCOME STATEMENT CLOSING ENTRY FOR INCOME STATEMENT ACCOUNTS WITH DEBIT BALANCESACCOUNTS WITH DEBIT BALANCES

42

3. Credit to Close

1. Date

4. Debit Total

2. Account Debited

1

3 3



(New Bal. 69,615.85)

SUMMARY OF CLOSING ENTRY FOR INCOME SUMMARY OF CLOSING ENTRY FOR INCOME STATEMENT ACCOUNTS WITH DEBIT BALANCESSTATEMENT ACCOUNTS WITH DEBIT BALANCES

Closing (costs and expenses) 337,664.15


Bal. 189,960.00

Purchases

Bal. 6,600.00

Advertising Expense

Bal. 3,385.00

Credit Card Fee Expense

Bal. 3,170.00

Insurance Expense

Bal. 2,584.15

Miscellaneous Expense

Bal. 9,105.00

Payroll Taxes Expense

Bal. 21,000.00

Rent Expense

Bal. 89,400.00

Salary Expense

Bal. 4,730.00

Supplies Expense—Office

Bal. 3,910.00

Supplies Expense—Store

Bal. 3,820.00

Utilities Expense

Income Summary

Closing (revenue) 423,120.00Adj. (mdse. inv.) 15,840.00

(New Bal. zero)Closing 189,960.00











the income summary account

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