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Standard closing entries: Close Revenue accounts to Income Summary by debiting Revenue and crediting Income Summary. Close Expense accounts to Income Summary by debiting Income Summary and crediting Expense accounts. Close Income Summary to Capital account by debiting Income Summary and crediting Capital account. Close Withdrawals account to Capital account by debiting Capital account and crediting Withdrawals account.
Insurance account is expense account and expense account is closed in income summary account. Insurance account should be credited where as income summary account should be debited
The income summary is also referred to as the revenue summary or the profit and loss statement. It serves as a temporary account used to close revenue and expense accounts at the end of an accounting period.
Income summary is called the closing account, clearing account, nominal account,or temporary account?
debit profit and losscredit owners capital account
Income summary is called the closing account, clearing account, nominal account,or temporary account?
debit owners capitalcredit drawings 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.
TEMPORARY ACCOUNT
income summary account.
income summary
debit Income Summary; credit Insurance Expense