A debit balance in the income summary account indicates what?

The Net Income is entered in the...?

• (1) The Net Income is entered in the: debit side of the Income Statement section of the worksheet. credit side of the Income Statement Section of the worksheet. debit side of post closing Trial Balance. debit column of the Cash Flow Statement. (2) Match the following items: proof of the ledger worksheet net income financial statements closing entries output of accounting cycle post closing trial balance NSF check statement of cash flow income summary closing entries balance sheet a check dishonored check matching principles A. ninth step in the accounting cycle B. temporary account C. trial balance D. organizes information from the income statement and balance sheet E. sources and uses of cash F. financial statement G. last accounting procedure with accounting cycle H. written order from a depositor to bank I. closing the temporary accounts J. income statement K. summary of changes of business transactions L. a returned check M. a bounced check N. matching expenses incurred with the revenue earned O. summarize the revenue and expenses

• Answer:

  1. debit side of the income statement section of the worksheet. expenses are debits. revenues are credits. if its a net INCOME, the revenues (credits) should be more than the expenses (debit), you need another debit to balance the worksheet. 2. proof of the ledger O worksheet C net income J financial statements D closing entries A output of accounting cycle F post closing trial balance G NSF check M statement of cash flow E income summary B closing entries I balance sheet K a check H dishonored check L matching principles N