1. 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

2. CLOSING ENTRY FOR AN INCOME STATEMENT ACCOUNT WITH A CREDIT BALANCE3 1 2 4
1. Heading
2. Date
3. Debit to Close
4. Credit
Lesson 17-2, page 435

3. 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

4. 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