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How do you do the income summary?
If there is a net income, debit Income Summary. If there is a net loss, then credit it.
When is income summary a net loss?
when net income is zero
Revenues total 10200 expenses total 7300 and the owners withdrawals account has a balance of 2600 What is the balance in the income summary account prior to closing net income or net loss?
5500
Which account has a balance equal to net income immediately before it is closed?
income summary account.
What is the journal entry to close the income summary account when there was net income for the period involves?
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.
How do you do the income summary?
If there is a net income, debit Income Summary. If there is a net loss, then credit it.
When is income summary a net loss?
when net income is zero
When there is a net loss the entry to close income summary is?
Debt Income Summary Credit Retained Earnings.
Revenues total 10200 expenses total 7300 and the owners withdrawals account has a balance of 2600 What is the balance in the income summary account prior to closing net income or net loss?
5500
If net income is zero do you have a loss in your business?
Net Income zero means firm has at no profit no loss position and it does not means loss to company.
What does the Income Statement measure?
Income statement measures the amount of net profit or net loss related to specific fiscal year of business.
Can Net income on an income statement be negative?
Yes net income on income statement can be negative and that amount is called net loss for that specific period or fiscal year.
What is the journal entry to close the income summary account when there was net income for the period involves?
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.
Which account has a balance equal to net income immediately before it is closed?
income summary account.
How is net income measured on an income statement?
following is the formula for measuring net income or loss:Net income (loss) = total revenue - total expenses.
How do you calculate net operating income?
Total operating income less total operating expense = net operating income (or loss if the expenses were higher)
Are the proceeds from the sale of a building included in net income?
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.
