when net income is zero
If there is a net income, debit Income Summary. If there is a net loss, then credit it.
5500
You debit the income summary (which has a credit balance due to a positive net income) for the same amount that is on the credit side to close it out, and you credit retained earnings for the same amount.
income summary account.
following is the formula for measuring net income or loss:Net income (loss) = total revenue - total expenses.
If there is a net income, debit Income Summary. If there is a net loss, then credit it.
Debt Income Summary Credit Retained Earnings.
5500
Net Income zero means firm has at no profit no loss position and it does not means loss to company.
Income statement measures the amount of net profit or net loss related to specific fiscal year of business.
Yes net income on income statement can be negative and that amount is called net loss for that specific period or fiscal year.
income summary account.
You debit the income summary (which has a credit balance due to a positive net income) for the same amount that is on the credit side to close it out, and you credit retained earnings for the same amount.
following is the formula for measuring net income or loss:Net income (loss) = total revenue - total expenses.
Total operating income less total operating expense = net operating income (or loss if the expenses were higher)
No proceeds from sale of building is part of cash flow statement while profit or loss on sales of building is part of net income in accrual base accounting while cash base accounting it is part of net income or loss.
Net Income (Loss)