retained earnings account should be debited.O income summary account should be credited.O retained earnings account should be credited.O income summary account should be debited.Question 6The balance in the income summary account before it is closed will be equal tothe net income or loss on the income statement.the beginning balance in the retained earnings account.the ending balance in the retained earnings account.O zero.Question 7The income statement for the month of June, 2019 of Joseph Enterprises containsinformation:Revenues$7,000

Income summary account is defined as the account which receives all the temporary account of firm…

The balance in the income summary account before it is closed will be equal to O the net income or loss on the income statement. O the beginning balance in the retained earnings account. O the ending balance in the retained earnings account. zero.

The balance in the income summary account before it is closed will be equal to O the net income or loss on the income statement. O the beginning balance in the retained earnings account. O the ending balance in the retained earnings account. zero.

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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Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

retained earnings account should be debited.
O income summary account should be credited.
O retained earnings account should be credited.
O income summary account should be debited.
Question 6
The balance in the income summary account before it is closed will be equal to
the net income or loss on the income statement.
the beginning balance in the retained earnings account.
the ending balance in the retained earnings account.
O zero.
Question 7
The income statement for the month of June, 2019 of Joseph Enterprises contains
information:
Revenues
$7,000

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