THE INCOME SUMMARY ACCOUNT Lesson 17-2 (GJ) THE INCOME SUMMARY ACCOUNT Income Summary 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 1 2 4 1. Heading 2. Date 3. Debit to Close 4. Credit Lesson 17-2, page 435

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

Lesson 17-2 (GJ) SUMMARY OF CLOSING ENTRY FOR INCOME STATEMENT ACCOUNTS WITH DEBIT BALANCES 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) 423,120.00 Adj. (mdse. inv.) 15,840.00 Closing (costs and expenses) 337,664.15 (New Bal. 69,615.85) (New Bal. zero) Closing 189,960.00 (New Bal. zero) Closing 21,000.00 (New Bal. zero) Closing 6,600.00 (New Bal. zero) Closing 89,400.00 (New Bal. zero) Closing 3,385.00 (New Bal. zero) Closing 4,730.00 (New Bal. zero) Closing 3,170.00 (New Bal. zero) Closing 3,910.00 (New Bal. zero) Closing 2,584.15 (New Bal. zero) Closing 3,820.00 (New Bal. zero) Closing 9,105.00 Lesson 17-2, page 437