Question

IV
If Income Summary has a credit balance after revenues and expenses have been closed
into it the closing entry for Income Summary will include a credit to the owner's capital
account. - Do you agree with this? Why or why not? -Explain

Answer 1

Explanation:

Next, if the Income Summary has a credit balance, the amount is the company's net income. The Income Summary will be closed with a debit for that amount and a credit to Retained Earnings or the owner's capital account. If the Income Summary has a debit