I just learned about Income Summary. Is it a temporary or permanent account and aside from using it to close, does it serve any other purpose? Is it a Debit or Credit account. What are some other temporary accounts and how do I know or how can I tell if something is a temp account or a permanent account? Also please answer this. Why is Dividend and Expenses temporary accounts?

I just learned about Income Summary. Is it a temporary or permanent account and aside from using it to close, does it serve any other purpose? Is it a Debit or Credit account. What are some other temporary accounts and how do I know or how can I tell if something is a temp account or a permanent account? Also please answer this. Why is Dividend and Expenses temporary accounts?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The solution to this question please
Hi I asked this question previously and the individual did not explain things clearly. For instance he provided the I'm guessing standard method of finding a missing amount on a certain type of T-Account but then would turn around and solve it using a different method. I am posting the response that were not clear below. If you could tell me what the actual method is and if there exceptions and if so what those are.Answer #1 I needed the BEGINNING balance of a debit account. As you can see the response below the individual provided a formula that included the BB which is UNKOWN because that is WHAT I NEED. At the bottom they change around the equation to come to the answer. So what is the proper way???Part-1. Begining balance of cash account is missing. The cash account is having a debit balance always. The formula for Cash account is as under:Ending balance of Cash Account = Begining Balance of cash account + All debits - All creditsHere,Ending Balance of cash = 9800All debits…