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    iris3411's Avatar
    iris3411 Posts: 4, Reputation: 1
    New Member

    Apr 14, 2007, 06:08 AM
    Does the Income Summary Balance go to Income Statement
    I am doing a 10 column worksheet and I have a credit $ amount in the Income Summary account in the Adjusted Trial Balance. Do I move that to the Income Statement or the Balance Sheet section of the worksheet?
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
    Ultra Member

    Apr 14, 2007, 02:33 PM
    Why do you have an Income Summary account at all on the Adjusted Trial Balance?

    What have you put in this account?
    iris3411's Avatar
    iris3411 Posts: 4, Reputation: 1
    New Member

    Apr 15, 2007, 09:35 AM
    I figured out that it goes to the Income Statement. The reason there is an income summary acct in the trial balance is because Ending Inventory (on the books) and Ending Inventory (via a hand count) is adjusted through the Inventory and Income Summary accts in this project. The adjusting entry ends up being the difference between the 2. Does that make sense to you? I am probably not describing it correctly... Thanks for all of your help.
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
    Ultra Member

    Apr 15, 2007, 01:20 PM
    What you are saying is that you are:
    Dr. Income Summary
    Cr. Inventory.

    You should be Dr. COGS, but if the project tells you to debit Income Summary, then you are doing it correct.

    And under that, Income Summary would go on the income statement to lower your net income by reducing your revenue amount to get a gross profit total.

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