 |
|
| Browse | Ask | Answer | Search | Join/Login |
|
|
||||
|
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?
|
||||
|
||||
|
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.
|
||||
|
||||
|
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. |
||||
| Question Tools | Search this Question |
Add your answer here.
Check out some similar questions!
Hi I'm new in studying accounting. I have quiz coming up tomorrow and I was wondering how I set up a Certified balance sheet and a multi-step income statement. The example we received was this. On may 1st, 2006 Jane Win began the Jane Win Co. which owns a business selling gift items. She ivested...
My assignment includes writing up both a balance sheet and income statement given the trial balance. I've completed most of it, but I'm a bit unsure on a few things... 1) Allowance for Bad Debts. - Am I to consider this a current asset? 2) Patents. - Most likely long-term asset? Also, I'm...
I have been attempting this problem for about 4 hours, read through the chapter 3 times, and yet I can still not complete this question. :confused: Here is the excel template I looked up to view the format, which also includes the question: Kimmel, Weygandt, Kieso: Financial Accounting:...
I'm starting a company and have prepared a four-year proforma statement of income. Now I need to prepare proforma balance sheets and statements of cash flow. I know that current retained earnings less previous retained earnings from the balance sheet equal current net income from the income...
A-1 Photography Homework Assignment: Income Statement (Balance) Adjusted Trial Balance Entries: (Month Ending September 30, 2006) Service Revenue: Photographic Service Revenue 4,700 Expenses: Adjusted Trial Balance Amount:
View more questions Search
|
