Income Summary account: Income summary is a temporary account prepared while closing the revenue accounts and the expense accounts, and the balance from it is transferred to the Retained Earnings account. Rules of Debit and Credit: Following rules are followed for debiting and crediting different accounts while they occur in business transactions: Debit , all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities . Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses. To Identify: The data that will be summarized in Income Summary Account

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Chapter 4, Problem 29Q

To determine

Income Summary account: Income summary is a temporary account prepared while closing the revenue accounts and the expense accounts, and the balance from it is transferred to the Retained Earnings account.

Rules of Debit and Credit:

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.

Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses.

To Identify: The data that will be summarized in Income Summary Account

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