[Accferr57]

I am not looking for the answer that's why I have not included the dollar amount.
I just want to know how to do the income summary to the question below. What are the step I should follow?

I have tried several steps and cannot come up with the answer. I must be leaving something out either in the Revenue or the Expense.

Cash
Account Receivable
Equipment
Dividends
Salaries
Depreciation
Supplies
Account payable
Capital Stock
Retained Earnings
Service Revenue

What is the balance in income summary before it is closed to retained earnings?

[CaptainForest]

Wouldn't it be easier to post numbers PLUS the work you have done?

Income Summary. You must close out all the accounts that appear on the income statement.

So a revenue account has a credit balance normally, so you need to debit it:
Dr. Revenue
Cr. Income Summary

So you should debit:
Service Revenue

You should credit:
Salaries Expense
Depreciation Expense
Supplies Expense

[Accferr57]

Thank you. Yes it would be easier to include the amounts but I would like to try and solve the problem

You did answer my question and I was leaving out Depreciation Expense

Thank you so much.
Regards

[Accferr57]

Hi,
Thank you for your immediate response to my first question.
'What is the balance in income summary before it is closed to retained earnings"

In addition to the same question.

I now subtract the Expense column:

Salaries Expense
Depreciation Expense
Supplies Expense
Total 125


from the Revenue column:
Service Revenue
Total 185

125 minus 185 = 60 balance in income summary - correct?
Would this 60 also be considered my net income?

This will conclude this my first problem

I posted this same question under the Answer section - sorry

[CaptainForest]

Yes, the 60 would also be your net income.

What you would be doing is Dr. Income Summary 125 (for expenses), Cr. IS for 185, so a balance of a Cr. IS of 60 (so you then have to Dr. it and Cr. RE, which makes perfect sense when you have a Net Income)

[sarahima88]

Hi

Could you help me? I'd like to know the accounting number of income summary. For Clients we use 411 for income summary what we use? Because in accounting system I should like it to a number.

Thank you in advance.

Best Regards,
Sara