Question

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 Question 15 options: a. debit to the retained earnings account. b. debit to the dividends account. . c. credit to the retained earnings account. d. credit to the dividends account

Answer 1

Answer:

c. credit to the retained earnings account

Explanation:

After closing the revenues and expenses, the balance i.e net income would be recorded below:

The journal entry is as follows

Income summary A/c Dr XXXXXX

        To Retained earning A/c XXXXXX

(Being the difference is recorded or the net income)

Since the company earns the net income i.e revenue is exceeded than expenses