Income Summary Account What Is It, How To Calculate & Close
In step 1, we credited it for $9,850 and debited it in step 2 for $8,790. To close that, we debit Service Revenue for the full amount and credit Income Summary for the same. This is a non-operating or “other” item resulting from the sale of an asset (other than inventory) for more than the amount shown in the company’s accounting records. Permanent Versus Temporary Accounts After this analysis, they move the total profit or loss into their main savings account,...