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What is the journal entry for net income?
No journal entry for net income it is the difference between total expenses and total revenue and it is the balancing figure
What is journal entry to taking funds to reserve account?
[Debit] Net income account [Credit] General Reserves
When is income summary a net loss?
when net income is zero
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.
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.
Why is it during analyzing the transaction revenues and expenses are recorded as increases and decreases to retained earnings?
At your reporting ending period, you will take your net income/loss (Income minus expense) and add/decrease your retained earnings. This is a closing journal entry.
A company's month-end adjusting entry for Insurance Expense is 1000 If this entry is not made then expenses are understated by 1000 and net income is overstated by 1000?
Yes this is right statement as if some expenses are forgot to record it overstated the net income and reduces the expenses but in actual there is less net income then shown in income statement.
What will be the journal entry if you received net commission after deducting prev month gross commission?
The journal entry for receiving commission is as follows: Cash/Bank [Debit] XXXX Commission[Credit] XXXX
When there is a net loss the entry to close income summary is?
Debt Income Summary Credit Retained Earnings.
Closing an s corporation journal entries?
Closing the journal entries for an S Corporation involves transferring revenue and expense balances to the retained earnings account, reflecting the corporation's net income or loss for the year. This typically requires debiting the revenue accounts and crediting the expense accounts to zero them out, followed by a debit to the Income Summary account and a credit to Retained Earnings for the net income amount. If there is a net loss, the entries would be reversed. Finally, any distributions to shareholders should be recorded separately to reflect the distribution of profits.
What is the difference between Net loss earnings versus net loss gains?
Income less than expenses negative numbers below zero. Income more than expenses. Positive numbers above zero a net profit from the business operation.
What is the entry when releasing a net asset from temporarily restricted?
Release restricted funds by creating a journal entry which is a credit to the restriction account and a debit to retained earnings
