THE INCOME SUMMARY ACCOUNT Income Summary Debit Total

THE INCOME SUMMARY ACCOUNT Income Summary Debit Total expenses Credit Revenue (greater than expenses) (Credit balance is the net income. ) Lesson 17 -2, page 426 © South-Western Educational Publishing

CLOSING ENTRY FOR AN INCOME STATEMENT ACCOUNT WITH A CREDIT BALANCE 1 2 1. Heading 2. Date 3. Debit to Close 4. Credit 3 4 Lesson 17 -2, page 427 © South-Western Educational Publishing

CLOSING ENTRY FOR INCOME STATEMENT ACCOUNTS WITH DEBIT BALANCES 1. Date 2. Account Debited 3. Credit to Close 4. Debit Total 3 3 1 2 4 Lesson 17 -2, page 428 © South-Western Educational Publishing

SUMMARY OF CLOSING ENTRY FOR INCOME STATEMENT ACCOUNTS WITH DEBIT BALANCES Income Summary Adj. (mdse. inv. ) Closing (costs and expenses) 15, 840. 00 337, 664. 15 Purchases Bal. 189, 960. 00 Closing (New Bal. zero) Advertising Expense Closing (revenue) (New Bal. 423, 120. 00 69, 615. 85) Rent Expense 189, 960. 00 Bal. 21, 000. 00 Closing (New Bal. zero) Salary Expense 21, 000. 00 Bal. 6, 600. 00 Closing (New Bal. zero) Credit Card Fee Expense 6, 600. 00 Bal. 89, 400. 00 Closing (New Bal. zero) Supplies Expense—Office 89, 400. 00 Bal. 3, 385. 00 Closing (New Bal. zero) Insurance Expense 3, 385. 00 Bal. 4, 730. 00 Closing (New Bal. zero) Supplies Expense—Store 4, 730. 00 Bal. 3, 170. 00 Closing (New Bal. zero) Miscellaneous Expense 3, 170. 00 Bal. 3, 910. 00 Closing (New Bal. zero) Utilities Expense 3, 910. 00 Bal. 2, 584. 15 Closing (New Bal. zero) Payroll Taxes Expense 2, 584. 15 Bal. 3, 820. 00 Closing (New Bal. zero) 3, 820. 00 Bal. 9, 105. 00 Closing (New Bal. zero) 9, 105. 00 Lesson 17 -2, page 429 © South-Western Educational Publishing