THE INCOME SUMMARY ACCOUNT

1. Income Summary THE INCOME SUMMARY ACCOUNT Debit Total expenses Credit Revenue (greater than expenses) (Credit balance is the net income.) Lesson 17-2, page 434

2. 3 4 CLOSING ENTRY FOR AN INCOME STATEMENT ACCOUNT WITH A CREDIT BALANCE 1 2 1. Heading 2. Date 3. Debit to Close Lesson 17-2, page 435 4. Credit

3. 3 3 1 CLOSING ENTRY FOR INCOME STATEMENT ACCOUNTS WITH DEBIT BALANCES 1. Date 2. Account Debited 3. Credit to Close 4. Debit Total 2 4 Lesson 17-2, page 436

4. Adj. (mdse. inv.) 15,840.00 Closing (revenue) 423,120.00 Supplies Expense—Store Miscellaneous Expense Payroll Taxes Expense Insurance Expense Utilities Expense Supplies Expense—Office Credit Card Fee Expense Advertising Expense Salary Expense Rent Expense Purchases Bal. 189,960.00 Bal. 21,000.00 Closing 189,960.00 Closing 21,000.00 (New Bal. zero) (New Bal. zero) Bal. 6,600.00 Bal. 89,400.00 Closing 6,600.00 Closing 89,400.00 (New Bal. zero) (New Bal. zero) Income Summary Bal. 3,385.00 Bal. 4,730.00 Closing 3,385.00 Closing 4,730.00 (New Bal. zero) (New Bal. zero) Bal. 3,170.00 Bal. 3,910.00 Closing 3,170.00 Closing 3,910.00 (New Bal. zero) (New Bal. zero) Bal. 2,584.15 Bal. 3,820.00 Closing 2,584.15 Closing 3,820.00 (New Bal. zero) (New Bal. zero) Bal. 9,105.00 Closing 9,105.00 (New Bal. zero) SUMMARY OF CLOSING ENTRY FOR INCOME STATEMENT ACCOUNTS WITH DEBIT BALANCES Closing (costs and expenses) 337,664.15 (New Bal. 69,615.85) Lesson 17-2, page 437