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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. 3. 4. CLOSING ENTRY FOR AN INCOME STATEMENT ACCOUNT WITH A CREDIT BALANCE. 1. 2. 1. Heading. 2. Date.

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The income summary account

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


Closing entry for an income statement account with a credit balance

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


Closing entry for income statement accounts with debit balances

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


Summary of closing entry for income statement accounts with debit balances

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


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