Find solution
A debit balance in the income summary account indicates what?

Income Summary has a credit balance of $12,000 in J. Sawyer Co. after closing revenues and expenses. The entry?

  • to close Income Summary is a) debit Income Summary $12,000, credit Dividends $12,000. b) credit Income Summary $12,000, debit Dividends $12,000. c) debit Income Summary $12,000, credit Retained Earnings $12,000. d) credit Income Summary $12,000, debit Retained Earnings $12,000.

  • Answer:

    It depends on the accounting method being used and if this is a company that pays dividends or not. If it does pay dividends, then it's A. If it does not, then it's C.

Lemme guess at Yahoo! Answers Visit the source

Was this solution helpful to you?

Other answers

A is really strong but B C A D have potential..........I would go with B or perhaps D...........

kapn

A.... retained earnings is there to throw you off.

amdollar

Related Q & A:

Just Added Q & A:

Find solution

For every problem there is a solution! Proved by Solucija.

  • Got an issue and looking for advice?

  • Ask Solucija to search every corner of the Web for help.

  • Get workable solutions and helpful tips in a moment.

Just ask Solucija about an issue you face and immediately get a list of ready solutions, answers and tips from other Internet users. We always provide the most suitable and complete answer to your question at the top, along with a few good alternatives below.