Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

when making closing entries if income summary starts out with 40000 in revenue, then 26300 in expenses that leaves a credit balance of 13700 to

when making closing entries if income summary starts out with 40000 in revenue, then 26300 in expenses that leaves a credit balance of 13700 to close income summary you debit income summary of 13700 to retained earnings now retained earning have a debit balance of 13700 than you have dividends debit balance of 4000 which you credit to retained of 4000 leaving retained earning with a DEBIT balance of 9700... my question is how come when you're preparing a post closing trial balance the 9700 goes on the credit side not the debit. (unless positive retained earning goes on the credit while negative goes on the debit) but i'm confused can you help thanks got it nevermind income summary is its own seperate account thanks anyways

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

AML Auditing Understanding Global Custody Services

Authors: Bob Walsh

1st Edition

1539534367, 978-1539534365

More Books

Students also viewed these Accounting questions