If Income Summary Has A Credit Balance After Revenues And Expenses

Credit to the retained earnings account.

If income summary has a credit balance after revenues and expenses. 26 if the income summary account has a credit balance after revenues and expenses are closed into it the firm had a net income for the fiscal period. If income summary has a credit balance after revenues and expenses have been closed into it the closing entry for income summary will include a question 15 options. We will also close these accounts to income summary. Credit to the dividends account.

The answer is c. Let s look at the t account for income summary. C the closing entry for income summary will include a debit to the. 61 if income summary has a credit balance after revenues and expenses have been closed into it the closing entry for income summary will include a a.

Debit to the dividends account. Debit to the dividends account. Credit to the retained earnings account. True false if the income summary account has a credit balance after revenues costs and expenses are closed into it the firm had a net income for the fiscal period.

If income summary has a credit balance after revenues and expense have been closed into it. Group of answer choices. A credit balance in the income summary account after revenues and expenses have been closed means that the company has a net income. Debit to the retained earnings account.

27 the entire process of analyzing recording and reporting business transactions is based on the fundamental accounting equation. Debit to the retained earnings account. Credit to the retained earnings account. The details in the income statement are transferred to the income summary account where the expenses are deducted from the revenues to determine if the business made a profit or a loss.

Credit to the dividends account. Credit to the dividends account. Next if the income summary has a credit balance the amount is the company s net income. If the income summary account has a credit balance after revenues and the expenses are closed the firm had a net income for the fiscal period.

A the closing entry for income summary will include a credit to the dividend account. Debit to the dividends account. The income summary on the other hand is a temporary account which is where other temporary accounts like revenues and expenses are compiled. The debit to income summary should agree to total expenses on the income statement.

Here is the journal entry to close the expense accounts. B the closing entry for income summary will include a credit to the retained earnings account. A debit amount for the total amount of the general ledger income statement accounts that had debit balances. After these two entries the revenue and expense accounts have zero balances.

Debit to the retained earnings account. Credit to the retained earnings account.