If Income Summary Has A Credit Balance After Revenues And Expenses Have Been Closed Into It

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 expenses have been closed into it. 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. The first accounts to close are the revenue accounts. Debit to the dividends account. B the closing entry for income summary will include a credit to the retained earnings account.

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. Credit to the retained earnings account. After all temporary accounts have been transferred to the income summary account the balance in each temporary account will be closed and transferred to the capital account for a sole proprietorship or to retained earnings for a corporation corporation a corporation is a legal entity created by individuals stockholders or shareholders. Debit to the retained earnings account.

Credit to the retained earnings account. S log in for more information. If income summary has a credit balance after revenues and expense have been closed into it. After this entry is made all temporary accounts including the income summary account should have a zero balance.

Debit to the retained earnings account. Zen arcade paid the weekly payroll on january 2 by debiting salaries and wages expense for 47 000. After paul s guitar shop prepares its closing entries the income summary account has a balance equal to its net income for the year. Debit to the dividends account.

If the account has a 90 000 credit balance and we wanted to bring the balance to zero what do we need to do to that account. 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 credit to the retained earnings account. A the closing entry for income summary will include a credit to the dividend account. This balance is then transferred to the retained earnings account in a journal entry like this.

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 credit to the retained earnings account. Credit to the dividends account. Credit to the dividends account.