Question
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
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