A debit balance in the income summary account indicates what?

Accounting ???Income summary balance?

• Irvine Company began the current period with a $35,000 credit balance in the M. Irvine, Capital account. At the end of the period, the company's adjusted account balances include the following temporary accounts with normal balances. Service fees earned $ 42,000 Interest revenue $ 8,000 Salaries expense 31,000 M. Irvine, Withdrawals 9,200 Depreciation expense 11,000 Utilities expense5,000 Requirement 1: After closing the revenue and expense accounts, what will be the balance of the Income Summary account? Income Summary balance: How the heck is this calculated??? I am so lost i tried everything????

• Answer:

  Answer: Service fees earned 42,000 Interest revenue 8,000 Less:Salaries expense 31,000 Less: Depreciation expense 11,000 Less: Utilities expense 5,000 Income summary balance 3000 Withdrawal should be appropriately closed against capital. Capital balance after closing of income summary and withdrawal will be 35000 + 3000 - 9200 = 28800.